Abstract

Purpose: Purpose of this study is to explore the development pattern of inter-firm resource portfolios and mechanisms that influence the alignment of resource portfolios between a logistics service provider and one of its customers.

Design/methodology/approach: Qualitative empirical research methodology based on case-study design. Critical realism perspective is used with abductive logic of analysis. Data for study has been gathered through semi-structured interviews from two Finnish companies.

Findings: Study finds that various resources from both parties are mutually combined to form resource portfolios. Pattern of such portfolio development shows that existing resources are combined between both parties before investing in new resource-base. Further, aligning resources through coordination, adaptation and integration of resources is one of the ways to achieve inter-firm alignment from LSP’s perspective.

Research limitations: Data was gathered using single LSP with limited respondents. Care should be taken in generalizing its findings. This study has a specific context, other studies can be conducted using different logistics context.

Practical implications: Study guides managers on inter-firm resource portfolios development pattern that affects LSP’s performance in logistics outsourcing arrangement. Study highlights mechanisms that influence the alignment of internal and external resources to perform better.

Original/value: Portfolio approach is applied in dyadic context that provides new avenue to explore development of inter-firm resource portfolios. Study provides insight on resource alignment as one of the means to achieve inter-firm alignment in logistics outsourcing arrangement. This study contributes to the logistics and strategic management literature.