NETWORK ORIENTATION IN LOGISTICS SERVICE INDUSTRY: CONCEPTUALIZATION AND OPERATIONALIZATION OF THE THEORETICAL CONSTRUCTS

Abstract

Logistics firms do not have all resources needed to carry out their activities.
Resource scarcity is particularly conspicuous in the case of means of transport, and
increasingly in warehouses or reloading facilities. The logistics services are therefore
delivered by many interdependent firms that co-ordinate their work with subcontractors in a multi-level complex structure. Logistics service providers collaborate
with direct or indirect suppliers, but also customers and in some cases competitors. A
complex picture of multiple relationships emerges, forming a network of co-operating
firms. Managers can use of network relationships to mobilize other organizations’
resources in order to improve performance. Their attitude directed at seizing
opportunities embedded in inter-organizational networks is called network
orientation.
The purpose of this paper is to develop a conceptual model of network
orientation. We synthesize and operationalize theoretical constructs relative to
network orientation, and explain how competitive advantage of logistics enterprises
can be created through networks.
To our best knowledge this study is first to explain the mechanism of competitive
advantage formation in logistics enterprises using network orientation. We propose a
structured composition of the network orientation concept and contribute to further
develop logistics industry research and practice by providing a reflective analysis,
inspiration and guidance.
Key words: network orientation, logistics service industry, competitive advantage