This research develops and tests a model of the effects of\nresources bundling on third-party logistics (3PL) provid?\ners� performance. Based on data from a survey of Malaysian\n3PLs, basic and advanced technology and equipment\nresources, knowledge and relational resources, and\ndemand management interfaces are identified. The\nbundling of advanced technology, knowledge resources,\nand demand management interface capability are found to\nenhance 3PLs� customer service innovation. Similar\nresource bundling (excluding advanced technology) is\nrequired to achieve cost leadership. The effects of other\nresources on performance are mediated mainly by the\ndemand management interface capability and knowledge\nresources. This is a novel attempt to justify the interaction\nand mediation effects of resources and capabilities on\nperformance. The research highlights the needs for 3PL\nmanagers to focus on developing and bundling their\ndemand management interface capability and knowledge\nresources in order to achieve cost leadership, and further\ncombine advanced technology into such bundling of\nresources and capabilities to achieve innovation in custom?\ner service. It advances the application of resource-based\nview (RBV) theory in logistics research by identifying\nresources that play supporting roles and examining the\ncapabilities for enhancing 3PLs� competitive performance.
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