Leveraging logistics competence in new product sourcing : the role of strategic intent and impact on performance

The purpose of the present research is to examine and compare product and logistics competencies in supplier selection decisions, which can serve as a crucial building block for competitive differentiation, in the context of the unique private label (PL) supply chain. This study also hypothesizes about the impact of product and logistics competence on the retailer’s financial performance. Lastly, the moderating role of the product type in the proposed research model is explored. Partial least squares path modelling is used to analyze the dataset drawn from major South Korean retailers, due to the exploratory nature of the research and the use of both reflective and formative construct measurement items. Overall, the results of this study demonstrate that relationships between the desire for a particular strategic intent and performance are more complex than previous studies have implied. The findings of this research offer possible explanations on an important but understudied aspect of PL success: why not all PLs (even of the same retailer) are thriving even in a rapidly growing PL industry. We further elicit strategic recommendations for retailers in selecting PL suppliers and for PL manufacturers to differentiate themselves and achieve a superior performance.