Explaining logistics social responsibility from a dynamic capabilities perspective

DOIhttps://doi.org/10.1108/IJLM-08-2017-0200
Pages1255-1278
Published date05 June 2018
Date05 June 2018
AuthorTim Gruchmann,Stefan Seuring
Subject MatterLogistics,Management science & operations
Explaining logistics social
responsibility from a dynamic
capabilities perspective
Tim Gruchmann
FOM University of Applied Science, Essen, Germany, and
Stefan Seuring
Department of Supply Chain Management, University of Kassel, Kassel, Germany
Abstract
Purpose So far, most of the literature on logistics social responsibility (LSR) has prioritized the
examination, classification of and adaption toward positive LSR practices instead of investigating necessary
logistics service providerscapabilities to implement LSR strategies. Therefore, the purpose of this paper is to
contribute to theory by an assessment of LSR and its linkages to dynamic capabilities theory to gain insights
into how logistics service providers can foster an enhanced application of LSR practices.
Design/methodology/approach The paper is conceptual and grounded on dynamic capabilities theory.
Relevant literature from logistics management, supply chain management and sustainable supply chain
management (SSCM) as well as dynamic capabilities was examined to build upon existing theory by
conceptualizing LSR from a dynamic capabilities perspective. In addition, propositions for future research are
presented based on the conceptual model.
Findings With regards to the controversial discussion in the literature about the direct link between
dynamic capabilities and competitive advantage as well as the necessary degree of heterogeneity of dynamic
capabilities, the conceptualization of LSR from a dynamic capabilities perspective adds new elements to this
discussion. Considering long-term or even sustainable competitive advantage, the current degree of
homogeneity across logistics services might hinder a sustainable advantage in the long run and demands for
more advanced logistical capabilities. In this line, it is important to understand and utilize the causal
relationships between different logistical resources and capabilities to achieve a unique long-term advantage
allowing logistics service providers to further enhance LSR practices.
Practical implications Due to the current role of logistics service providers, they should not just foster
their resources focusing on the relationship to the focal firm, but they should also develop and implement new
logistical capabilities derived from SSCM-related dynamic capabilities to design alternative service portfolio
extensions and new business models.
Originality/value Although dynamic capabilities have been studied intensively in the last two decades,
the causal relationships between different logistical resources and necessary dynamic capabilities to achieve
advantages by enhancing LSR practices still lack conceptualization. To build on the understanding of LSR,
the paper at hand presents a conceptual framework explaining LSR and SSCM practices through the lens of
dynamic capabilities theory.
Keywords Sustainability, North America, Europe, Management research, Supply chain competences,
Logistics services, Conceptual research
Paper type Conceptual paper
1. Introduction
In line with the ongoing sustainability debate, logistics service providers as any other actor
in the supply cha in have to respond to the increasing demands for sustainability of their
stakeholders(particularly of end customers and the government) (Bowersox, 1998;Carter and
Jennings, 2002; Gold et al., 2010). In this context, a sustainable logistics management can be
interpretedas the realization of their logistics socialresponsibility (LSR) (Carter andJennings,
2002). Accordingly, the processes of logistics service providers such as sourcing and
procurement, transportation management, warehousing and inventory management are
linked with sustainability requirements, namely, requirements of environmental concerns,
ethics, diversity, working conditions and human rights,safety, philanthropy and community
involvement (Carter and Jennings, 2002). In the past, the performance of logistics service
The International Journal of
Logistics Management
Vol. 29 No. 4, 2018
pp. 1255-1278
© Emerald PublishingLimited
0957-4093
DOI 10.1108/IJLM-08-2017-0200
Received 7 August 2017
Revised 14 December 2017
Accepted 15 February 2018
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0957-4093.htm
1255
Logistics social
responsibility
providers has been defined purely in quantitative terms (e.g. Halldórsson and Skjøtt-Larsen,
2004). As concerns for environmental and social issues within the society and at consumer
side rise, logistics service providerscapabilities to facilitate sustainable practices and
business models are coming to the fore. Consequently, the role of logistics service providers
can be interpreted as a key determinant for sustainability in supply chains. To date, the
literatureon LSR is still rather small and, at the same time,the def‌inition as well as the content
of LSR have not yet reached uniformity (Miao et al., 2012; Mejías et al., 2016). Despite the
importance of incorporating corporate social responsibility (CSR) practices in the logistics
industry, most of the existing studies address single LSR functions such as sustainable
purchasing, sustainable transportation, sustainable warehousing,sustainable packaging and
sustainable reverse log istics rather than provid ing cross-functional in vestigations
(Ciliberti et al., 2008). Hence, most authors have prioritized the examination, classification of
and adaption towardpositive LSR practices instead of investigating missing logistics service
providersabilities to implementfurther LSR strategies. Recently,Heidbrink et al. (2015)stated
that the dependence on other supply chain members as well as fierce competition are
major challenges for logistics service providers to implement further LSR practices which
partially leadto an unsatisfactory service performance (Wong and Karia, 2010). Accordingly,
logistics service providers do not yet sufficiently meet their stakeholdersdemands
for sustainability.
Furthermore, research on CSR practices within the supply chain carried out from the focal
firm perspective dominates the literature (Spence and Bourlakis, 2009). Here, the focal firm refers
to the company governing over the supply chain, providing direct contact to end customers and
having bargaining power over other actors in the supply chain, e.g. original equipment
manufacturers in the automotive industry (Harrison and van Hoek, 2008). Just in recent years,
the research interest in (S)SCM has gradually shifted from focusing on focal firms to tier
1 suppliers and sub-suppliers at multi-tier supply chain levels (Tachizawa and Wong, 2014).
However, very few contributions focus on logistics service providers, although they have the
potential to directly coordinate sustainable actions in multi-tier supply chains. In contrast, focal
companies and tier 1 suppliers rather have to govern the supply chain indirectly or work with a
third party in order to enforce sustainable practices (Tachizawa and Wong, 2014).
This demands a connection to be built to another field in management research, namely,
the dynamic capabilities approach (originally proposed by Teece et al., 1997). Regarding the
literature on dynamic capabilities, several routines have been identified through which
managers can pool their knowledge and skills to generate new knowledge, solutions or
resource configurations (Eisenhardt and Martin, 2000). Using these routines in a strategic
manner, managers of logistics service providers are able to purposefully change their
business environment (Helfat et al., 2007) by forming new partnerships or by changing the
relationships between partners in the supply chain. Recent findings on existing obstacles
preventing logistics service providers from an enhanced application of LSR practices
(cf. Heidbrink et al., 2015; Abbasi and Nilsson, 2016) indicate that logistics service providers
would benefit from developing new business practices to enable less competitive and
performance-oriented business environments. Accordingly, the study intends to contribute
by conceptualizing LSR from a dynamic capabiliti es perspective to enhance the
understanding of the logistics service providerscapacities to shape supply chain
configurations and, therefore, to promote sustainable logistics practices in supply chains.
The following research question guided our conceptual study:
RQ1. How can dynamic capabilities theory add to the understanding of LSR practices in
sustainable supply chains?
To answer the proposed question, the paper at hand is structured as follows: In Section 2,
the relevant literature on LSR is summarized, while the necessary theoretical
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