Logistics service capabilities and firm performance of international distribution center operators

This study empirically evaluated the crucial logistics service capabilities and firm performance of international distribution center operators in Taiwan. Three critical logistics service capabilities were identified based on factor analysis: (a) innovation capability, (b) customer response capability, and (c) flexible operation capability. Cluster analysis was subsequently used and based on their mean scores in the three logistics capability dimensions, respondents' firms were assigned to one of three groups, namely: customer response and flexible operation capabilities-oriented firms, customer response and innovation capabilities-oriented firms, and customer response capability-oriented firms. Findings indicated that customer response and innovation capabilities-oriented firms had the best firm performance, followed by customer response and flexible operation capabilities-oriented firms and customer response capability-oriented firms.