Many Korean importers and exporters operating overseas have been having difficulty pioneering and expanding the overseas market due to the lack of overseas local professional logistics services. This is because it is difficult for them to expect the s...
Many Korean importers and exporters operating overseas have been having difficulty pioneering and expanding the overseas market due to the lack of overseas local professional logistics services. This is because it is difficult for them to expect the same level of professional logistics services specialized in Korean companies when using overseas local 3PL companies.
As entering the 2000s, with the expanded needs for the professional logistics services by Korean importers and exporters who have entered overseas, domestic 3PL companies have become more active in entering overseas market. It is, therefore, not exaggeration to say that the history of Korean importers and exporters expansion overseas has grown with the globalization of the market. Besides, external environmental factors that inevitable made to turn eyes away to overseas logistics market have been built as the oversupplied domestic 3PL logistics market was formed and globalization of corporations’ environment proceeded.
For a short period of time, Korean 3PL companies that have entered overseas have grown in so remarkably quantitative numbers that many Korean 3PL companies are now being operated in major markets around the world. Those Korean 3PL companies, however, have not been able to overcome their inherent limitations of targeting at the relatively easy Korean logistics market. As a result, those companies operating overseas are becoming oversupply, getting the market more competitive. This is attributed to its nature of service industry, which has relatively low entry barrier.
Therefore, this study is concerned with the impact of 3PL value on corporate performance by selecting overseas partners prior to determining which areas Korean 3PL companies operating overseas should focus on to have relatively competitive advantage.
Frequency analysis performed in this study was conducted using the SPSS 26.0 statistics package and hypothesis tests to analyze the impact of 3PL selection factors on overseas 3PL companies and 3PL values on the performance were made using AMOS version 26.0. To fully reflect the positions of the parties concerned, the samples of exporters in Korea, Korean exporters overseas, 3PL companies in Korea, and Korean 3PL companies overseas, were selected. The differences between importers and exporters and 3PL companies were investigated in a complementary manner, and the comprehensive results are summarized as follows.
First, regarding human infrastructure factor, an independent variable, the samples from the whole, importers and exporters, and 3PL companies were analyzed. The result shows that in the samples from the whole, and importers and exporters, human infrastructure factor has positive effect on the parameters of 3PL value of both Korean and overseas companies. In the 3PL company sample, however, human infrastructure factor has negative effect on the parameters.
Second, regarding corporate reputation factor, three samples of the whole, importers and exporters, and 3PL companies have the same result as follows: Corporate reputation has positive effect on the parameters of 3PL value of both Korean and overseas local companies.
Third, concerning logistics service factor, interestingly, three samples of the whole, importers and exporters, and 3PL have the same result as follows: Corporate reputation factor has negative effect on the parameters of 3PL value of both Korean and overseas local companies.
Fourth, the result of analysis of the relationship asset factor, two samples from the whole and 3PL show the result as follows: The relationship asset factor has positive effect on parameters, but it appears only on the Korean 3PL value, not on the overseas local 3PL. From the view of importers and exporters sample, however, the relationship asset factor has negative effect on the either parameters.
Fifth, the sample from the whole, importers and exporters, and 3PL have the same result as follows: Korean 3PL value factor, the parameter, has positive effect on the competitive advantage of corporation performance, but overseas local has negative effect on the corporate performance.
This study has greatly contributed to the theoretical expansion of the related research by analyzing the effects of human infrastructure, and relationship assets factors on 3PL selection although it had been treated with neglect in academia, in that it suggests core competency on which Korean 3PL companies overseas should concentrate in order to secure competitive advantage and sustainability when global logistics market is fierce.
Nevertheless, further research on Fourth-Party logistics, the combination of 3PL, IT services, and consulting services, will be necessary to be studied in the future to provide more differentiated logistics services.