Context-strategy-structure-performance in logistics: A contingency approach

Contingency-based environment-strategy-structure-performance paradigms have been investigated extensively in the organizational science and strategic management fields. The general premise of such research is that performance is contingent upon a firm's environmental, strategic, structural fit. The purpose of this research was to study such contingent relationships within the context of logistical operations. The objectives were to develop and examine a context-strategy-structure-performance model for logistics based on established constructs. This Logistics Contingency Model was then tested for the existence of organizational relationships within logistics operations.;Context was represented by (1) environmental dynamism and hostility and (2) logistics information technology operating systems and planning systems. Strategy was examined using the Bowersox and Daugherty (1987) typology. Structure was evaluated using established contructs representing formalization, centralization, integration, and span of control. Performance was evaluated using perceived measures of logistics competency relative to competitors. The major findings of the research are: (1) Higher levels of environmental dynamism and hostility resulted in higher levels of formalization. This finding is contrary to long-established empirical results in organizational science. (2) Information technology positively impacts logistics structure. Highly proficient operating and planning systems extend logistical span of control. The former is also associated with greater levels of formalization. (3) Highly dynamic environments stimulate extensive use of integrative committees within logistics organizations. (4) Externally-oriented logistics strategy firms were found to be significantly more likely to use integrative committees in comparison to non-externally-oriented strategy firms. (5) Consistent with the organizational science literature, logistics structure alone did not impact performance. However, the corollary relationship--that structure would mediate contextual and strategic influences on performance--was not supported in this research.;North American World Class Logistics Research case firms were examined to test the model. In total, data for fifty-seven firms was available for analysis. In addition, thirty-nine of the firms completed a follow-up questionnaire providing longitudinal strategy and performance data. T-tests and regression analysis were used in evaluating selected relationships.