Power shifts in logistics triads: strategies, capabilities and reconfiguration

Purpose The study investigates how power dynamics impact logistics outsourcing in New Zealand, specifically focusing on the relationships between customers, suppliers and logistics service providers (LSPs). Design/methodology/approach A qualitative multiple-case study approach was employed. Six logistics triads (totalling 18 organisations) across diverse New Zealand industries were selected. Data were collected through 30 semi-structured interviews with senior logistics professionals from all three parties within each triad. Findings The research reveals that LSPs' development of distinctive resource capabilities acts as a key trigger for power dependency shifts within the triad. In response, the focal firm strategically adapts its relationship management based on the comparison between its own power and the collective power of the two non-focal firms. When facing a relative power disadvantage, the focal firm adopts a risk-averse selective alliance strategy, collaborating with one non-focal firm while deliberately preventing collaboration between the other two to mitigate the risk of a counter-coalition. Conversely, when holding a relative power advantage, the focal firm pursues a profit-maximising inclusive collaboration strategy, fostering cooperation with both non-focal firms to enhance overall efficiency and shared profits, while accepting transactional dynamics between them if collaboration is unprofitable. New Zealand's specific context amplifies these dynamics and the strategic significance of LSP capabilities. Originality/value This study offers significant originality by: (1) integrating Resource Dependency Theory and Network Theory to provide a novel, capability-centric lens on triadic power evolution, moving beyond purely structural perspectives; (2) Empirically demonstrating the critical and active role of LSP resource capabilities as catalysts for power shifts and strategic adaptation by the focal firm, challenging generic treatments of the third party; (3) Contextualising triad dynamics within New Zealand's unique business environment, highlighting how market constraints shape strategic choices; and (4) Developing four empirically grounded propositions explaining the mechanisms linking LSP capabilities, power asymmetry, and focal firm strategic responses. This integrated framework provides new insights for practitioners managing complex three-party logistics relationships.