Logistics outsourcing and firm performance in internationalized and non-internationalized companies in Russia

Abstract

Outsourcing logistics operations can have a considerable impact on how firms perform along the supply chain. Today many manufacturing firms choose to give up ownership or control over transportation and warehousing functions for inbound or outbound flows and corresponding assets. Previous research, however, expressed doubtful attitude with regards the effectiveness of outsourcing, due to inconsistent experience, when some outsources had favorable performance impacts while others failed. This study investigates the effects of logistics outsourcing on firm performance by analyzing empirical data across a wide set of industries, based on data from a survey of Russian companies, taking into consideration the degree of internationalization. The results indicate that outsourcing logistics activities has a moderate positive effect on firm performance, but internationalization factor significantly moderates the situation.