Trustworthiness! A resilience strategy for operational efficiency of third-party logistics integration of road cargo transportation

Abstract

Purpose The main purpose of this study was to ascertain the influence of the trustworthiness of third-party logistics integration on operational efficiency of road cargo transportation in Tanzania. Design/methodology/approach The study employed a quantitative approach based on social exchange theory to investigate the association between trust of third-party logistics integration and the operational efficiency of road cargo transportation. Data were collected from 80 large clients and were thereafter analyzed quantitatively using ordinal logistic regression. Findings The findings revealed that information sharing and reliability embodied more strong relationship with beta coefficients of 1.563 and 1.367, respectively. However, mutual goal staking, empathy and competency of the integration served the purpose of the integration to a small effect comparatively. Research limitations/implications This study captured trust aspects quantitatively and hence, future studies should adopt a mixed methods approach. Also, this study focused on a single focal transportation firm and its third-party logistics companies, and hence limitation of generalization of its findings, calling for more broadened scope in future studies. Nevertheless, the role of digitization wasn’t included in this study. Future studies should dwell on the moderating efficiency of third-party logistics integration. Practical implications The study highlights the efficiency of the strategic value of trust-building initiatives of third-party logistics integration (information sharing, reliability, mutual goal sharing, competency and empathy) of cargo transportation. Originality/value The study shows how social exchange theory is a resource advantage for trustworthiness of third-party logistics integration of cargo transportation in developing nations such as Tanzania.