Understanding performance drivers of third‐party logistics providers in mainland China

Purpose – The paper's aim is to replicate and compare Huo et al. 's study to better understand performance drivers of third‐party logistics (3PL) in mainland China and to disseminate Hong Kong 3PL providers' experience to mainland China's peers. Design/methodology/approach – A structural model is estimated to test the construct relationships using data collected from 105 mainland China's 3PL providers. The results are compared with the results of Huo et al. 's study of Hong Kong 3PL providers. Findings – While the operations emphasis of low cost may still be effective for mainland China's 3PL providers, it may result in worse financial performance for Hong Kong 3PL providers. In mainland China, low‐ cost emphasis is affected by local competition, but not by operational challenges, while it is influenced by both local competition and operational challenges in Hong Kong. Operational challenges have a positive impact on low‐cost emphasis in Hong Kong, but no impact in mainland China. Originality/value – The study enriches the literature on China's logistics and provides mainland China's 3PL managers valuable insights from the business practices of their Hong Kong peers.