The dark side of logistics outsourcing - Unraveling the potential risks leading to failed relationships

Ming Chih Tsai, Kee Hung Lai, Alison E. Lloyd, Hung Ju Lin

Research output: Journal article publicationJournal articleAcademic researchpeer-review

67 Citations (Scopus)


We identify and empirically examine the potential risk factors and their structural relationships that can cause a logistics outsourcing relationship to fail. Specifically, we investigate how the relationship risk as perceived by apparel wholesalers as user firms influence their evaluation on the asset and competence entrusted with their logistics service providers, which are logistics outsourcing risk factors considered important by the former in determining continued relationships with the latter. The results highlight the need for relationship management by user firms to mitigate the risks in asset and competence specifically invested in logistics service providers for their outsourced activities.
Original languageEnglish
Pages (from-to)178-189
Number of pages12
JournalTransportation Research Part E: Logistics and Transportation Review
Issue number1
Publication statusPublished - 1 Jan 2012


  • Logistics outsourcing
  • Relationship management
  • Resource-based view
  • Risk analysis
  • Transaction cost theory

ASJC Scopus subject areas

  • Business and International Management
  • Civil and Structural Engineering
  • Transportation

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