Performance Improvements in Logistics Outsourcing Relationships - The Hampering Role of LSPs' Mindsets

This paper extends current literature by identifying and conceptualizing factors that hamper relationship-specific improvements by logistics service providers (LSPs) in contract logistics outsourcing. Thereby it focusses on organizational mindsets that are common for service pro-viders in the logistics industry. Based on exploratory, interview-based case-study research four specific organizational mindsets of LSPs are outlined that hamper the scope and the extent of relationship-specific improvements. They are hierarchical mindset, direct costs-focused mindset, detailistic and zero-error mindset, and hidden action mindset. In addition to the spe-cific improvements effects, this research describes the effects that these LSP mindsets have on the behavior and dynamics in the service outsourcing relationship. Conventional customers contracting conventional LSPs with respective mindsets results in a stable, but suboptimal situation with limited relationship-specific improvements. Largest im-provements are generated when unconventional customers contract unconventional LSPs, while the situation is unstable when one of the parties possesses a conventional mindset and the other an unconventional mindset