The role of supply chain finance in third-party logistics industry: a case study from China

Abstract

This research aims to explore how third-party logistics (TPL) firms with different strategic orientations gain competitive advantage through market practices. The study also aims to determine the role of supply chain finance (SCF) in the process. We adopt a multiple case study methodology to conduct interviews with five Chinese TPL firms chosen as representatives of diverse TPL firm types. The findings suggest that the roles of SCF vary in firms with different orientations. Scale-oriented firms gain competitive advantage through market exploitation practices. They view SCF as an optional tool to achieve their goal of meeting customer needs through enhancing the benefits of their market exploitation practices. In comparison, scope-oriented firms view SCF as a key business sector to improve their financial performance. They gain competitive advantage through market exploitation practices, which is enabled by SCF.