A New Perspective on Returns to Scale for Truckload Motor Carriers

Understanding how motor carriers' size affects their productivity (e.g., miles per power unit) is of fundamental importance to carrier managers, shippers, and investors, because the nature of this relationship should influence carriers' strategies with regard to growth. In the truckload (TL) sector, the prevailing assumption is that TL carriers face constant returns to scale such that productivity differs little between large and small carriers. While empirical findings from several studies conducted since deregulation are consistent with this assumption, we contend that the true relationship between carrier size and productivity is more nuanced and is contingent on carriers' level of technical efficiency. Specifically, we develop and test middle range theory that predicts increasing returns to scale for carriers with low technical efficiency, constant returns to scale for carriers with average technical efficiency, and decreasing returns to scale for carriers with high technical efficiency. We test our theory by estimating production functions using quantile regression for data collected from the U.S. Department of Transportation for 1,068 TL carriers. Results from our analyses corroborate our predictions. Our findings hold valuable implications for the logistics literature as well as TL carrier management, shippers, and other industry stakeholders.     

Sweating the Assets: Asset Leanness and Financial Performance in the Motor Carrier Industry

Originally adopted by the automotive manufacturers, lean management practices have since been applied to many other manufacturing industries. This study reviews the different theoretical perspectives on the leanness‐performance relationship in the context of the motor carriage industry. Drawing on both the lean management in logistics and organizational slack literatures, we develop hypotheses addressing the link between asset leanness and financial performance. These hypotheses are empirically tested using a comprehensive panel data set of 1,172 firm‐quarter observations from the U.S. publicly traded truckload motor carriers. Initially expecting an inverted U‐shaped relationship between asset leanness and performance, findings indicated a U‐shaped relationship, both for carriers' total assets and the subset of trailer assets.     

The Effect of Truckload Driver Turnover on Truckload Freight Pricing

High rates of truck driver turnover have long plagued the full truckload (TL) sector. While greater driver turnover raises TL carriers’ costs, no research has examined how changes in industry-wide TL driver turnover rates affect industry-wide prices shippers pay for TL transportation. Drawing on economic theory regarding firms’ asymmetric adjustment of prices in response to changing costs, we explain why increases in driver turnover are expected to increase the prices carriers charge for their services, whereas decreases in driver turnover are expected to have limited effect on the prices carriers charge for their services. We further explain why the positive impact of increases in industry-wide TL driver turnover rates on prices will be more pronounced when industry employment is rising more rapidly. To test our theory, we assemble a time series data set combining proprietary driver turnover data with publicly available data regarding TL pricing, trucking employment, diesel prices, and aggregate industry activity. Results from fitting a set of time series econometric models corroborate our theorized predictions. We explain the implications of these findings for theory and practice.     

A Multivariate Time‐Series Examination of Motor Carrier Safety Behaviors

Motor carriers’ operational safety affects multiple stakeholders including truck drivers, motor carriers, insurance companies, shippers, and the general public. In this article, I devise and test theory regarding motor carriers’ longitudinal performance for three classes of safety behaviors linked to carriers’ accident rates—Unsafe Driving, Hours‐of‐Service Compliance, and Vehicle Maintenance—tracked by the Federal Motor Carrier Safety Administration as part of the Compliance, Safety, and Accountability (CSA) program. Specifically, I draw on core concepts from sociological agency theory and resource dependency theory to devise middle‐range theory that generates never‐before‐tested hypotheses regarding carriers’ longitudinal safety performance for these classes of safety behaviors after the start of the CSA program. The hypothesized predictions are tested by fitting a series of multivariate latent curve models to four years of panel data for a random sample of 484 large, for‐hire motor carriers operating in the United States. The empirical findings corroborate the theoretical predictions and remain after robustness testing. These findings have important implications for scholars, motor carrier managers, procurers of motor carrier transportation services, and public policy makers.     

Reconciling Alternative Theories for the Safety of Owner–Operators

Motor carrier safety is an important concern of shippers, carriers, policy makers, consignees, insurance providers, and the motoring public. One aspect of carrier safety that has garnered substantial attention is whether carriers making greater use of owner–operators are more or less safe vis‐à‐vis carriers making greater use of employee drivers. Currently, conflicting theoretical predictions exist regarding the direction of this relationship. In this article, we offer a reconciliation of the alternative theoretical predictions by developing a coherent theory that merges sociological rational choice theory and theory regarding motor carrier safety. We subject our theory to empirical testing by fitting a series of seemingly unrelated regression models to a vector of safety measures tracked as part of the Federal Motor Carrier Safety Administration's Compliance, Safety, and Accountability program. Our results are consistent with our proposed theory of owner—operator safety and provide meaningful theoretical and managerial implications and directions for future research.     

Effects of Motor Carriers’ Growth or Contraction on Safety: A Multiyear Panel Analysis

Motor carrier safety remains a highly relevant issue for supply chain managers and scholars because carriers’ safety affects supply chains as well as the welfare of the motoring public. This article enriches understanding regarding this topic by investigating how motor carriers’ growth or contraction since the start of the Compliance, Safety, and Accountability (CSA) program in 2010 affects their safety performance. Drawing on core principles from theories regarding internal adjustment costs from economics and nonscale free capabilities from management, we explain why carriers’ growth or contraction should differentially affect various safety metrics tracked by the CSA program. To test our theory, we assemble a multiyear panel data set for over 1,000 of the largest for‐hire motor carriers operating in the United States by melding together several different governmental data sources. We fit a series of multivariate seemingly unrelated regression models to test our hypothesized effects. Our results corroborate our theorized predictions and are robust to alternative model specifications. We conclude by detailing how this work contributes to extant theory, summarizing managerial and policy implications, highlighting limitations, and suggesting directions for further pursuit.     

Developing and Testing a Dynamic Theory of Motor Carrier Safety

Developing an understanding of the longitudinal relationships between different measures of motor carrier safety is important to advance theory and practice regarding this significant supply chain management and public policy issue. In this article, we combine core principles from several theoretical traditions to propose a dynamic theory of motor carrier safety that specifies the longitudinal relationships between three core measures of safety publically reported by the Federal Motor Carrier Safety Administration: unsafe driving, hour‐of‐service compliance, and vehicle maintenance. We test this theory using four years of longitudinal data on motor carrier safety for a random sample of large, for‐hire motor carriers. Results from fitting a vector multivariate autoregressive moving average time‐series model are largely consistent with the theory we propose. We describe the implications of our research for supply chain management theory and practice, summarize limitations, and suggest directions for future research.     

Combining Formal Controls to Improve Firm Performance

Formal controls are an essential part of organizational design, and are theorized to positively influence organizational performance. Mello and Hunt ([2009] Transportation Journal, 48:20–39) were the first to suggest using formal controls to influence truck drivers' behavior. Extending the salesperson control literature, they documented an underresearched method of formal control that we term technology control, whereby firms use on‐board and communications technology to influence drivers. We build on their work by investigating the contingent effects of formal controls that influence the behavior of truck drivers and thereby influence the operational performance of firms in the U.S. motor carrier industry. Our work integrates the monitoring aspect of agency theory with the theory of operant conditioning and the theory of psychological reactance to develop a rationale for hypothesized contingent effects of formal controls on motor carriers' operational performance. We collected primary data pertaining to the controls used to influence truck drivers' behavior from a large sample of U.S. motor carrier firms. The results of our analyses using nonlinear structural equation modeling suggest a complex set of relationships between formal controls and operational performance. Our results shed light on scenarios where using technology to monitor driver behavior can result in positive and/or negative organizational outcomes.     

A New Look at the Longitudinal Relationship Between Motor Carrier Financial Performance and Safety

Motor carrier safety impacts the well‐being of the traveling public and the economic well‐being of the shippers who entrust motor carriers with safely transporting freight. Shippers are affected by motor carrier safety due to accidents damaging their cargo and disrupting their customers’ operations. One characteristic frequently theorized to predict motor carrier safety is motor carriers financial performance. However, the literature offers mixed evidence linking motor carrier financial performance to safety. This does not help practitioners or policy makers and necessitates research to resolve these inconsistent findings, which we undertake in this research. We extend previous work by developing a theoretical framework based on strain theory to explain why both absolute (static) financial performance and year‐to‐year change in financial performance should uniquely affect carrier safety. We test our hypotheses by fitting mixed‐effects models to a repeated‐measure, longitudinal database of publically traded motor carrier financial performance and safety measures. Results indicate that financial performance measures uniquely affect carrier safety. These findings attempt to resolve the inconsistencies in the past literature and, carry important implications for researchers studying motor carrier safety, motor carrier managers, shippers, and policy makers.     

Electronic Logging Device Compliance of Small and Medium Size Motor Carriers Prior to the December 18, 2017, Mandate

With few exceptions, motor carriers operating in the United States were required to install electronic logging devices (ELDs) as of December 18, 2017. Noncompliance exposed carriers to risk of fines from enforcement agencies. This research examines compliance behaviors of small and medium size carriers in the four months leading up to the ELD mandate, focusing on the effects of carriers’ size and geographic range of operation (e.g., regional vs. national). Drawing on sociological agency theory, new institutional theory, and theory regarding regulatory compliance, we explain why (1) carriers’ size displays a nonlinear relationship with ELD compliance, (2) the positive effect of carrier size on ELD compliance diminishes as the enforcement deadline approached, (3) carriers with operations covering wider geographic areas have higher rates of compliance, and (4) the effect of wider geographic range of operations on compliance will become more pronounced as the enforcement deadline approached. We test our theory using ELD compliance data collected by an industry data vendor, CarrierLists, from September 2017 through December 2017 from 3,910 motor carriers. Results from a series of discrete choice logistic regression models corroborate our predictions. These results have important implications for carriers, shippers, and regulators.     

The economic relationship between service quality and market protection for regulated household-goods moving

In considering the effects of motor carrier regulation, the direct measurement of service quality is an often neglected issue. This paper is an empirical investigation of the relationship of entry controls to service quality for household goods (HHG) moving services. The major research questions, which are based on inferences in the economic literature, have considerable importance for HHG regulation. The major finding is that carriers who receive the greatest market protection from the ICC provide inferior service quality and do not compete away excess returns by raising the level of service quality. Based on the study results, a number of theoretical and policy implications are discussed.     

Marx‐biased technical change and income distribution: A panel data analysis

This paper provides a further empirical evaluation of the Neoclassical theory of distribution as opposed to Marx‐biased technical change (MBTC) using a series of panel estimators. We argue that a panel data analysis is instrumental in increasing the efficiency and validity of the test. Our results generalize previous findings in providing support for MBTC and against the Neoclassical theory of income distribution.     

Economies of Product Diversity in Collaborative Logistics

Collaborative logistics, also known as shipper collaboration, is a method of reducing the freight logistics cost of firms that produce and/or distribute tangible goods (shippers), which seeks to improve capacity utilizations of trucks. This study looks at this shipper collaboration problem in the U.S. truckload (TL) industry and proposes a new approach. Unlike other studies, which focused on reducing TL costs by utilizing economies of density, we present an approach that utilizes specific TL economies gained by mixing multiple products with different weight‐to‐volume ratios, which we call economies of product diversity. Using theoretical and empirical evidence, we show that the performance of shipper collaboration can be enhanced notably using this concept, economies of product diversity, which is currently overlooked in the literature.     

中国生产性服务业FDI影响因素实证研究

本文采用动态面板数据分析方法,利用我国20个省市2004-2010年的面板数据,分析我国生产性服务业FDI的影响因素。研究结果表明:(1)整体生产性服务业FDI与市场规模和市场增长潜力呈正向关系,但细分行业中信息传输、计算机服务和软件业,科学研究、技术服务和地质勘查业这两个行业并没有像预期的那样会促进其FDI的流入。(2)整体和细分生产性服务业FDI均明显具有追逐制造业FDI的倾向,并且与前期生产性服务业FDI具有正向关系。(3)劳动力工资水平与生产性服务业FDI流入呈正相关,这与绝大多数现有的研究尤其是关于制造业或服务业FDI影响因素的研究结论不同。(4)熟练工人、基础设施系统、政府干预和对外开放程度均与生产性服务业FDI有显著关系,是影响生产性服务业FDI的主要因素。     

Producer Services, Manufacturing Linkages, and Trade

Working with a mix of panel data on goods and services trade for the OECD for 1994–2004, combined with social accounts data (i.e. data on intermediate linkages) for 78 countries benchmarked to the panel midpoint, we examine the role of services as inputs in manufacturing, with a particular focus on indirect exports of services through merchandise exports, and also on the related interaction between service sector openness and the overall pattern of manufacturing exports. From the cross-section, we also develop a set of stylized facts linking services to the level of development and the density of intermediate linkages. We find significant and strong positive effects from increased business service openness (i.e. greater levels of imports) on industries like machinery, motor vehicles, chemicals and electric equipment, supporting the notion that off-shoring of business services may promote the competitiveness of the most skill and technology intensive industries in the OECD. Conversely, we find evidence of negative general equilibrium effects for sectors that are less service intensive.     

How Firm Strategies Impact Size of Partner‐Based Retail Networks: Evidence From Franchising

How do firms' partnering strategies impact the size of their partner‐based retail networks? We draw on agency theory to address this question in the context of franchising. Our econometric analyses (based on 9 years of longitudinal balanced panel data) include assessment of data nonstationarity and estimation of a dynamic panel data model that accounts for unobserved heterogeneity and endogeneity. Our findings indicate that franchisee network size is driven more by franchisor strategies that mitigate agency costs than by strategies that simply lower entry and ongoing costs and barriers for franchisees.     

一种引入内容控制模块的改进PCC架构模型

现有移动通信的策略与计费控制(PCC)架构无法完全满足数据业务精细化运营管理的要求。为了提升对数据业务内容的控制能力,提出了对现有策略与计费规则功能单元(PCRF）进行扩充,追加内容控制模块CCRF(Content Control Rules Function）来改进传统PCC架构的设想。通过广东移动一个实验性CCRF实施案例可以看出,改进后的PCC架构有可能进一步改善移动运营商在数据业务内容管理、客户体验和满意度管理,以及数据业务颗粒化营销、业务管控中心建设等领域的工作。     

中国服务业技术效率变化的实证分析

本文使用1990-2003年省级面板数据,尝试性地运用随机前沿生产函数方法来考察中国服务业技术效率的变化状况,并进一步分析了中国服务业技术效率的收敛性。研究结果表明:中国服务业技术效率呈逐渐上升的趋势,且东中西部三大地区的服务业技术效率也表现出逐渐上升的趋势,但东西部地区服务业技术效率要低于中部地区;同时,中国各省服务业技术效率表现出显著的收敛性。     

Sex-Typed Service Images: An Empirical Investigation of Self-Service Variables

This article presents a study of sex-typed service images based on gender research in marketing and service encounter theory. The purpose is to address the issues of how and why services as distinct from products acquire a sex-typed image. Two streams of research provide the variables hypothesized to influence sex- image determination: gender research provides individual variables related to the consumer him/herself, and service encounter research provides variables related to the service itself. Consumer variables include an individual's biological and psychological sex image and personal use, while service variables deal with the sex image of the firm's characteristic provider and typical customer. A study conducted to test the hypotheses that both sets of variables influence a service's sex-typed image is presented. Marketing implications for development and promotion of new services and re-positioning of extant ones are discussed.     

Service Contract Negotiations in Marketing Channels:

This study investigates the factors that influence motor carriers perceptions of the success of negotiations with customers over contractual transportation service in marketing channels. The findings indicate that the motor carrier's perceived success of the negotiation is influenced directly by his/her trust of the customer, and indirectly by the customer's dependence on his/her organization. The results also suggest that though the nature of contract negotiation for motor carriage service has become more cooperative in the deregulated environment, a certain degree of opportunism still influences the negotiator's behaviors. From these findings, issues are presented which can aid the channel members in developing successful strategy for future negotiation with motor carriers.