@article{a77c9e9675054896a437e0fe53576df8,
title = "Why do Internet commerce firms incorporate logistics service providers in their distribution channels?. The role of transaction costs and network strength",
abstract = "The Internet has redefined information-sharing boundaries in distribution channels and opened new avenues for managing logistics services. In the process, firms have started to incorporate new service providers in their commercial interactions with customers over the Internet. This paper studies conceptually and empirically why Internet commerce firms (ICFs) have established relationships with these providers. Focusing on logistics services in outbound distribution channels, we rely on transaction cost theory to reveal that low levels of asset specificity and uncertainty drive Internet commerce firms to establish these relationships. Moreover, we apply strategic network theory to show that Internet commerce firms seek these providers because they offer access to relationship networks that bundle many complementary logistics services. In addition, logistics service providers make these services available across new and existing relationships between the Internet commerce firms, their customers, and their vendors.",
keywords = "Electronic commerce, Empirical study, Logistics, Operations strategy, Service operations, Strategic networks, Transaction costs",
author = "Elliot Rabinovich and Knemeyer, {A. Michael} and Mayer, {Chad M.}",
note = "Funding Information: This work was supported by the Supply Chain Management Department at Arizona State University, as well as a W.P. Carey School of Business Dean Award for Excellence Grant and an Institute of Supply Management Senior Researcher Fellowship granted to Elliot Rabinovich. We are grateful to the participants at the POMS 2005 Meeting and at the SCM Seminar Series at Arizona State University for their comments and suggestions. Also, we would like to acknowledge the reviewers and Associate Editor at the Journal of Operations Management, as well as Martin Dresner, Philip Evers, and Curtis Grimm (University of Maryland), Thomas Choi and Arnold Maltz (Arizona State University), and Thomas Goldsby (The University of Kentucky) for their suggestions and comments. As well, we wish to thank Rama Ramaswamy (Senior Editor) and Lynn Adelmund (Director of Marketing Research) at Primedia Business Magazines and Media for their assistance during the data collection process. Finally, we would like to recognize the following individuals for their generous support during the development of our research: Bryan Handlen (Vice President of Logistics, Cooking.com), Diane Parker (Director of Market Research and Analysis, Lands{\textquoteright} End), John Strother (Director of Inventory and Logistics, REI), Howard Kaufman (Vice President of Direct Business, PETsMART), Linda Carlisle (Director of Development, R.R. Donnelley), Jeff Sosville (Director of Operations, eBags.com), Jack Schmid (Founder and CEO of J. Schmid and Associates Inc.), and Chris Finley and Steve Wheeler (Vice President and Director of Distribution, Swiss Colony). ",
year = "2007",
month = apr,
doi = "10.1016/j.jom.2006.05.012",
language = "English (US)",
volume = "25",
pages = "661--681",
journal = "Journal of Operations Management",
issn = "0272-6963",
publisher = "Elsevier",
number = "3",
}