Exploring Factors Influencing Internationalization of TPL Service Providers: Evidences From Turkey
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2020
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Abstract
Purpose – This study aims to determine the factors affecting operational and managerial decisionsrelated to the internationalization process of Third-Party Logistics (TPL) service providers operatingin Turkey.Design/methodology/approach – Theoretical background of the study is based on Dunning EclecticParadigm which is one of the internationalization approaches, argues that the internationalization ofa business depends on its own OLI (ownership-O, location-L, and internalization-I) advantages. Theconceptual model of the study was set by grouping these advantages (factors) obtained from acomprehensive literature review and expert decisions. A questionnaire form was structured subjectto the network structure of the factors in this model. Data collected from survey forms filled in by31 logistics experts, were analyzed by using Analytical Network Process (ANP).Findings – The results of the study reveal that the most important factors influencing theinternationalization process of TPL service providers are political factors, economic factors, culturalfactors and long-term relationships respectively. However, the least effective ones were determinedas the number of vehicles, number of employees and market saturation.Discussion – The fact that the first three sub-factors are involved in market factors supports thatlong-term international logistics activities depend on long-term and stable political and economicrelations. Secondly, we argue that a good international logistics process management is carried outthanks to a good international management mentality and technological infrastructure based ondeveloped computer and tracking systems. Additionally, customers focus on the quality of serviceand how easy they reach the information rather than the number of vehicles or employees. Weassume that this study is one of the few studies on the subject and the findings will contribute toboth academic and sectoral environment. Since this study is limited to TPL service providersoperating in Turkey, the results of the study can be improved by future studies concerning differentservice providers operating in different regions.