Influence of Organizational Culture on Service Provider Selection

Although Third Party Logistics Service Provider (3PL) selection literature mentions organizational culture’s role in the development as well as in the maintenance of 3PL arrangements, there is a paucity of attempts to underline the significance of organizational culture’s influence on the formation and management of 3PL relationships. In this study, the influence of different organizational cultural orientations in uncertainty avoidance, future orientation, performance orientation and paternalism dimensions on the value and the priority that the outsourcing firms give to relation-oriented and success-oriented 3PL selection criteria is investigated. High and low cultural orientation (for each dimension) groups are compared in terms of the value that they give to relation-oriented and success-oriented criteria via t-tests whereas they are compared in terms of the priority that they give to relation-oriented and success-oriented criteria via Wilcoxon rank sum tests. The study reveals that decision makers are influenced by their organizational cultures while valuing and prioritizing relation-oriented versus success-oriented 3PL selection criteria.

___

  • Ames, C. and Archer, J. (1988) “Achievement goals in the classroom: Students’ learning strategies and motivation processes”, Journal of Educational Psychology, 80, pp. 260-267. Ashkanazy, N., Gupta, V., Mayfield, M. and Trevor-Roberts, E. (2004) “Future Orientation” In R. House, P. Hanges, and M. Javidan (Eds.), Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies (pp. 282-342), SAGE, Thousand Oaks, CA, 0-7619-2401-9 Aycan, Z. (2000) Türkiye’de Yönetim, Liderlik ve İnsan Kaynakları Uygulamaları, Türk Psikologlar Derneği Yayınları, Ankara. . Aycan, Z. (2001) “Paternalizm: Yönetim ve liderlik anlayışına ilişkin üç görgül çalışma”, Yönetim Araştırmaları Dergisi, 1, pp.11-31. Bagchi, P. K. and Virum, H. (1998) “Logistical alliances: Trends and prospects in integrating Europe”, Journal of Business Logistics, 19, pp. 191-213. Bass, B.M. (1990) “Task Versus Relations-Oriented Leadership” In B.M. Bass (Ed.), Bass & Stogdill’s Handbook of Leadership (pp. 473-510). New York: Free Press. Borekci, D., Rofcanin, Y. and Sahin, M. (2014) “Effects of Organizational Culture and Organizational Resilience over Subcontractor Riskiness: A Multi-Method Study in Longitudinal Time Setting”, European Business Review, 26 (1), pp. 2-22. Bottani, E. and Rizzi, A. (2006) “A Fuzzy TOPSIS methodology to support outsourcing of logistics services”, Supply Chain Management: An International Journal, 11, pp. 294-308. Bowersox, D. J. and Daughtery, P. (1990) Logistical Excellence:It’s Not Business as Usual, Digital Press, Burlington, MA, 1-55558-087-4. Boyson, S., Corsi, T.M., Dresner, M.E. and Harrington, L.H. (1999) Logistics and the Extended Enterprise: Benchmarks and Best Practices for the Manufacturing Professional, Wiley, New York. Carter, J. R., Maltz, A., Maltz, E., Goh, M. and Tingting, Y. (2010) “Impact of culture on supplier selection decision making”, The International Journal of Logistics Management, 21(3), pp. 353-374. Das, T. K. (1987) “Strategic planning and individual temporal orientation”, Strategic Management Journal, 8(2), pp. 203-209. Das, T. K. and Teng B. (2001) “A risk perception model of alliance structuring”, Journal of International Management, 7, pp. 1-29. De Luquei, M. S.and Javidan, M. (2004) “Uncertainty Avoidance” R. J. House, P. J. Hanges, M. Javidan, P. W. Dorfman ve V. Gupta (Eds), Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies, pp. 602-653. California: SAGE. Dweck, C. and Leggett, E. L. (1988) “A social-cognitive approach to motivation and personality”, Psychological Review, 95, pp. 256-273. Hofstede, G. (1984) Culture’s Consequences: International Differences in Work-Related Values, SAGE, Newbury Park, CA. Hofstede, G. (2001) Culture’s Consequences: Comparing Values, Behaviors Institutions and Organizations Across Nations, SAGE, Thousand Oaks, CA. Hofstede, G. and Hofstede, G. J. (2005) Cultures and Organizations: Software of the Mind (2nd Eds), McGraw-Hill, NewYork, NY. House, R., Hanges, P. and Javidan, M. (2004) Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies, SAGE, Thousand Oaks, CA, 0-7619-2401-9. Işıklar, G., Alptekin, E. and Büyüközkan, G. (2007) “Application of a hybrid intelligent decision support model in logistics outsourcing”, Computers & Operations Research, 34, pp. 3701-3714. Javidan, M. and House, R. J. (2001) “Cultural acumen for the global manager: Lessons from project GLOBE”, Organizational Dynamics, 29, pp. 289-305. Jharkharia, S. and Shankar, R. (2007) “Selection of logistics service provider: An analytic network process (ANP) approach”, Omega, 35, pp. 274-289. Kabasakal, H. and Bodur, M. (2002) “Arabic cluster: A bridge between East and West”, Journal of World Business, 37, pp. 40-54. Kale, S. H. and Barnes, J. W. (1992) “Understanding the domain of cross-national buyer-seller interactions”, Journal of International Business Studies, 23, pp. 101-132. Kitchell, S. (1995) “Corporate culture, environmental adaptation, and innovation adaptation: A qualitative/ quantitative approach”, Journal of the Academy of Marketing Science, 23(3), pp. 195-205. Kull, T. J. and Wacker, J. G. (2010) “Quality management effectiveness in Asia: The influence of culture”, Journal of Operations Management, 28(3), pp. 223-239. Li, Y., and Zahara, S. A. (2012) “Formal institutions, culture, and venture capital activity: A cross-country analysis”, Journal of Business Venturing, 27, pp. 95-111. Lieb, R. and Randall, H. (1996) “A comparison of the use of third-party logistics services by large American manufacturers”, Journal of Business Logistics, 17, pp. 305-320. Lieb, R. C., Bentz, R. and Brooks, A. (2005) “The use of third-party logistics services by large American manufacturers: The 2004 survey”, Transportation Journal, 44, pp. 24-33. Marasco, A. (2008) “Third-party logistics: A literature review”, International Journal Of Production Economics, 113, pp. 127-147. McKeon, J. E. (1991) “Outsourcing begins in-house”, Transportation & Distribution, 25(8), pp. 24-28. Mead, R. (1994) Patronage Relationships, International Management, Blackwell. Moorman, C., Deshpande, R. and Zaltman, G. (2010) “Factors affecting trust in market research relationships”, Journal of Marketing, 57, pp. 81-101. Mothilal, S., Gunasekaran, A., Nachiappan, S. P. and Jayaram, J. (2012) “Key success factors and their performance implications in the Indian third-party logistics (3PL) industry”, International Journal of Production Research, 50 (9), pp. 2407-2422. Naor, M., Linderman, K. and Schroeder, R. (2010) “The Globalization of operations in Eastern and Western countries: Unpacking the relationship between national and organizational culture and its impact on manufacturing performance”, Journal of Operations Management, 28, pp. 194-205. Omar, A., Davis-Sramek, B., Myers, M. B. and Mentzer, J. T. (2012) “A global analysis of orientation, coordination, and flexibility in supply chains”, Journal of Business Logistics, 33(2), pp. 128-144. Paşa, S., (2000) “Türkiye Ortamında Liderlik Özellikleri” In: AYCAN, Z., ed. Akademisyenler ve Profesyoneller Bakış Açısıyla Türkiye’de Yönetim, Liderlik ve İnsan Kaynakları Uygulamaları, Ankara. Türk Psikologlar Derneği Yayınları, pp. 225-241. Rajesh, R. and Ravi, V. (2015) “Supplier selection in resilient supply chains: a grey relational analysis approach”, International Journal of Physical Distribution and Logistics Management, 30, pp. 343-359. Sarkis, J. and Sundarraj, R. P. (2000) “Factors for strategic evaluation of enterprise information technologies”, Journal of Cleaner Production, 86, pp. 196-220. Singh, L. (1990) “Managerial culture and work-related values in India”, Organization Studies, 11, pp. 75-101. Sink, H., Langley, J. and Gibson, B. (1996) “Buyer observations in the US third-party logistics market”, International Journal of Physical Distribution and Logistics Management, 26(3), pp. 38-46. Tate, K. (1996) “The elements of a successful logistics partnership”, International Journal of Physical Distribution & Logistics Management, 26, pp. 7-13. Wasti, S.A. (1998) “Cultural barriers in the transferability of Japanese and American human resources practices to developing countries: the Turkish case”, The International Journal of Human Resource Management, 9(4), pp. 608-631. Ye, K., Le, B. and Shen, L. (2012) “Key factors considered in compiling tender prices for China’s public project works”, Journal of Management in Engineering, posted ahead of print 10 Dec 2012. Yilmaz, M. (2012) “Influence of Organizational Culture on Development and Prioritization of Logistics Service Provider Selection Criteria”, Unpublished Master Thesis. Yilmaz Borekci, D. (2009) “Paternalistic leadership style’s evolution in e-culture”, Journal of the School of Business Administration, Istanbul University, 38(2), pp. 103-109.