his book uses state-of-the-art scientific methods to reveal that most firms currently do not realize the full potential of logistics outsourcing. It shows the complexity of outsourcing performance and that its true drivers lie in the relationship between service providers and their customers. Through the results of a large-scale empirical survey, the book also emphasizes the importance of a firm's approach towards outsourcing.

4 Antecedents and effects of logistics outsourcing performance (p. 83-84)

After this previous chapter has consolidated the theories and argued their suitability, the following chapters will identify the relevant variables for logistics outsourcing relationships and introduce hypotheses on their causal linkages and performance effects. The previous chapter has pointed out the explanatory value of four different theories for the designing of logistics outsourcing relationships and has indicated that a number of variables affect their performance outcomes. The following chapters will explore these direct performance effects of logistics outsourcing relationships and will identify their antecedents on the basis of the proposed theories and previous research. Aside from the conceptualization, hypotheses will be generated that address the expected direct and indirect effects of these variables on outsourcing performance.

In a second step, hypotheses on the anticipated effects of logistics outsourcing performance on logistics performance and firm performance will be presented after the relevant variables will have been established. Finally, it will be analyzed which moderating effects can be expected from both external and internal contingency factors on the models developed on the basis of the different hypotheses.

4.1 Performance of logistics outsourcing relationships

The following two chapters will in detail discuss logistics outsourcing performance. At first, chapter 4.1.1 will present the background of the concept of logistics outsourcing performance, its connection to logistics performance and will argue for measuring it by focusing on its outcome. Then, chapter 4.1.2 will conceptualize the construct on the basis of the understanding developed before and introduce its bi-dimensionality.

4.1.1 Background of logistics outsourcing performance

As it will be discussed, logistics outsourcing performance is an important antecedent of logistics performance. The latter has been studied by a large number of logistics researchers, who have defined and measured performance in many different ways (CHOW/HEAVER/HENRIKSSON 1994) and thereby provided a valuable starting point for the analysis of logistics outsourcing performance.

As CHOW/HEAVER/HENRIKSSON (1995, p. 296) point out, logistics performance is multi-dimensional, reflecting multiple stakeholders and interests. Therefore, the possible desired outcomes are numerous and range from customer satisfaction over environmental responsibility, to overall cost-effectiveness. Important works on the topic of logistics performance include those of MENTZER/KONRAD (1991), CHOW/HEAVER/HENRIKSSON (1994), GASSENHEIMER/STERLING/ROBICHEAUX (1996), STANK/GOLDSBY/ VICKERY (1999), DEHLER (2001), STANK/KELLER/DAUGHERTY (2001), STANK/GOLDSBY/VICKERY/SAVITSKIE (2003), KNEMEYER/ MURPHY (2004) and ENGELBRECHT (2004).

Logistics performance, which according to CHOW/HEAVER/HENRIKSSON (1995, p. 296) in research is predominantly measured with"soft" perceptual indicators given the difficulty of obtaining"hard" performance measures, is a result of two different variables: on the one hand, it is influenced by the performance of logistics processes performed in-house under the direct responsibility of the LSP’s customer. On the other hand and of particular importance in the context of this research, it is affected by the performance of outsourcing arrangements in which the customer has delegated logistics and other relevant processes and the accompanying responsibility to a logistics service provider.

The performance of these outsourced processes, hereafter termed logistics outsourcing performance, is an important strategic issue which has received little attention so far in logistics research. Notable exceptions include STANK/GOLDSBY/VICKERY/SAVITSKIE (2003), KNEMEYER/ MURPHY (2004) and ENGELBRECHT (2004). These authors propose that successful logistics outsourcing can only be realized if the performance of the outsourcing arrangements can be adequately measured.