Business processes and logistics service competencies of logistics service providers in China

Business processes are routinized operations that are socially complex, causally ambiguous, and woven into the fabrics of organizations. They form the building blocks of corporate strategy. Effective and efficient business processes enhance a firm's competitive potential. The Chinese logistics industry is structurally fragmentary, comprising four major groups of players: state-owned enterprises; private logistics companies, foreign-owned logistics service providers, and joint venture companies. Extant literature on Chinese logistics industry generally characterises the four as compositionally contrasting in terms of asset strength, technological know-how, and social capital. Drawing on a survey of 117 logistics service providers in China, this study explores the business processes of the four groups of companies, focusing on how business processes among logistics service providers in China have contributed to their operational capabilities and logistics service competencies. Results of our analysis show that well-established logistics processes play a significant role in shaping the service capabilities of logistics service providers in China. The effectiveness of these processes is moderated by the quality and quantity of logistics resources available, which could both enhance as well as dampen the effectiveness of logistics processess in nurturing logistics and supply chain competencies.