Management Journals | Operations Management

The IUP Journal of Operations Management

Informational Integration, Relational Integration and Flexibility of LSPs in Transition Economies: Case of Vietnam

Article Details

Pub. Date	: May, 2022
Product Name	: The IUP Journal of Operations Management
Product Type	: Article
Product Code	: IJOM030522
Author Name	: Huu Tuyen Duong and Gilles Pache
Availability	: YES
Subject/Domain	: Management
Download Format	: PDF Format
No. of Pages	: 22

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Abstract

Logistics Service Providers (LSPs) play an important role in the national and global supply chains by contributing to the promotion and development of export economies, including Vietnam. Vietnamese logistics firms face very strong competition from foreign entities, which requires them to constantly improve and enhance their competitiveness. To that end, LSPs have evolved from basic service providers such as freight transportation to integrated services to meet all customer needs. The purpose of this paper is to evaluate the relationship between the capability to integrate resources with the flexibility of the LSP in the context of supply chain integration. Data collected from 151 managers of Vietnamese LSPs show that there is a positive impact of informational integration capability and relational integration capability on their flexibility in providing services to customers.

Introduction

In the context of the international business environment and the impact of the Covid- 19 pandemic on all aspects of non-traditional economic activities globally, businesses in general and Logistics Service Providers (LSPs) in particular have been affected greatly, requiring them to change and adapt to survive and develop. Given this, the capability to mobilize and integrate resources is one of the success factors of LSPs. LSP is a key element of global supply chain dynamics (Alinejad et al., 2018), contributing to the promotion and development of export economies (Yeung et al., 2012), including Vietnam (Vu et al., 2020; and Tran et al., 2022). It is true that for more than 20 years, Vietnam has been engaged in a vast program to improve its logistics system in order to be a major player in the Association of Southeast Asian Nations (ASEAN) (Dang