Strategic Purity and Efficiency in the Motor Carrier Industry: A Multiyear Panel Investigation

Two questions facing motor carrier managers are (1) whether carriers should specialize in providing full truckload (TL) or less‐than‐truckload (LTL) services vis‐à‐vis offering mix of both and (2) whether this decision is contingent on carrier size. Yet, the literature provides little guidance because research to date has offered contradictory theoretical predictions and inconsistent empirical findings. Drawing on the theory of strategic purity and information processing theory, we explain why service specialization is likely to increase carriers' technical efficiency and why size will have a more pronounced effect on technical efficiency for carriers specializing in LTL services versus TL services. To test our theory, we assemble a panel data set from archival government sources regarding general freight motor carriers' provision of LTL and TL services. We measure carriers' technical efficiency using data envelopment analysis and test our hypotheses by fitting a series of panel data mixed‐effects models. Our results indicate that carriers are most technically efficient when they specialize in one service type. We also find that size positively affects technical efficiency but only for carriers specializing in LTL services; no returns to scale with regard to technical efficiency exist for carriers specializing in TL services.     

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.     

AN EXAMINATION OF TRENDS AND IMPACT OF AUTHORSHIP COLLABORATION IN LOGISTICS RESEARCH

The discipline of logistics is undergoing tremendous change, including shifts in the focus of our associations, as well as in the subject matter, that is deemed important to the academic and professional community. In this article, we seek to evaluate how research in the discipline is also changing, specifically in terms of the degree of collaboration among scholars involved. We draw upon 3,116 articles published from 1987 through 2007 in seven logistics journals. Using the authorship and the citation counts of these articles, we identify several important characteristics of collaboration and offer preliminary empirical insight about the associated trends and impact that collaboration is having within our discipline. This initial assessment provides the potential to spur further interest into the theoretical development and empirical testing on this timely and important topic.     

THE “WHITE SPACE” OF LOGISTICS RESEARCH: A LOOK AT THE ROLE OF METHODS USAGE

This paper examines the use of various research methods by contemporary researchers. The previous six years of articles in a leading logistics journal are examined and classified. The analysis seeks to identify and discuss changes and trends that are occurring in the use of such methods, as well as considering why the current conditions are in place, and what, if any, opportunities exist for logistics researchers given this situation.     

The Economic Development Role of Regional Logistics Hubs: A Cross‐Country Study of Interorganizational Governance Models

As global competition intensifies, the geographic fragmentation of supply chain activities is creating a concentration of trade at regional freight gateways or hubs. This has significant implications for the economic prosperity of the specific gateway regions. The study explores the deliberate governance efforts of regional economic development agencies and the communities they support in their attempts to exploit location‐specific logistics assets to deliver economic productivity gains. Drawing on the new institutional economics’ body of literature, the research explores prevalent governance models which represent the proactive attempts by these agencies to transform regional logistics capability into cohesive hub strategies. By adopting exploratory cluster‐mapping procedures, web content analysis, and Delphi panels, study findings suggest a typology of multijurisdiction, and multiagency governance models representing the collaborative efforts between public sector and government agencies, academic institutions, and private sector organizations within selected European and U.S. logistics hubs. Each governance type is defined in accordance to specific economic organization and proficiency characteristics.     

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 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.     

Computer adoption and returns in transition

Across nine transition economies, it is the young, educated, English‐speaking workers with the best access to local telecommunications infrastructures who work with computers. These workers earn about 25 percent more than do workers of comparable observable skills who do not use computers. Controlling for likely simultaneity between computer use at work and labour market earnings makes the apparent returns to computer use disappear. These results are corroborated using Russian longitudinal data on earnings and computer use on the job. High costs of computer use in transition economies suppress wages that firms can pay to their workers who use computers.     

THE DOMAIN AND SCOPE OF SCM'S FOUNDATIONAL DISCIPLINES — INSIGHTS AND ISSUES TO ADVANCE RESEARCH

The authors examine and take stock of the changing nature and landscape surrounding supply chain management, and the related disciplines of purchasing, operations management, logistics and marketing channels of distribution. They identify, describe and synthesize the nature of research in those academic disciplines that are identified to be some of the objectives with respect to supply chain management's integration goals. Their examination highlights the considerable evolution and significant advances occurring within and among these disciplines. Additionally, they find this new landscape to provide both insights and issues for scholarship to those attempting to understand the evolving nature of supply chain management and its related fields. Such insights and issues suggest a number of proposals for progress with regard to SCM's future development.