Factors Influencing Logistics Outsourcing in Pakistan


  • Kanwar Uzair Research Scholar, Karachi University Business School, University of Karachi, PAKISTAN
  • Danish Ahmed Ayub Siddiqui Associate Professor, Karachi University Business School, University of Karachi, PAKISTAN




Outsourcing, Low Physical Assets, Low Human Assets, Partnership, Logistics Outsourcing Practices, Financial Benefit


The Freight Forwarding and Logistics industry plays a vital role in the overall economy of Pakistan. The purpose of this study is to determine the factors that influence for outsourcing the logistics and at the same time performance of outsourcing has been evaluated with respect to Karachi, Pakistan. Three factors identified as Low Human Assets, Low Physical Assets and Partnership, all have a positive impact on logistics outsourcing and the firm performance especially in terms of Financial Benefit. Online survey was conducted and the data was obtained from a sample size of 165 from the seniority level of the manufacturing industry in Karachi. We measure the inner model by Smart PLS software to indicate the reliability of all factors that significant impact on logistics outsourcing practices. Reliability test was also performed which showed that our study is significant.


Download data is not yet available.


Bardi E.J. and M. Tracey. (1991). “Transportation Outsourcing: A Survey of US Practices.” International Journal of Physical Distribution and LogisticsManagement 21 (3).15-21.

Barney, J. (1991), “Firm resources and sustained competitive advantage”, Journal of Management, Vol. 17 No. 1, pp. 90-120.

Browne M. and J. Allen.(2001). “Logistics out-sourcing.”In Brewer A.M., K.J. Button and D.A. Hensher (eds.), Handbook of Logistics and SupplychainManagement. New York: Pergamon.

Campbell, J.D. (1995), “Outsourcing in maintenance management: a valid alternative to self-provision”, Journal of Quality in Maintenance Engineering, Vol. 1 No. 3, pp. 18-24.

Clark, T., Zmud, R., McCray, G., 1996. The outsourcing of information services: transforming the nature of business in the information industry. Journal of Information Technology 10, 221–238.

Crum M.R. and B.J. Allen.(1997). “A Longitudinal Assessment of Motor Carrier-Shipper Relationship Trends, 1990 vs. 1996.”Transportation Journal 37 (1).5-17.

Grover, V., Malhotra, M., 2003. Transaction cost framework in operations and supply chain management research: theory and measurement. Journal of Operations Management 21, 457–473.

Gummesson. E The new marketing- developing long-term interactive relationships. Long Range Planning. 20, 4 (1987). 10-20

Halldórsson, A. and Skjøtt-Larsen, T. (2004), “Developing logistics competencies through third party logistics relationships”, International Journal of Operations and Production Management, Vol. 24 No. 2, pp. 192-206.

Harrigan, K.R., 1986. Matching vertical integration strategies to competitive conditions. Strategic Management Journal 7, 535–555.

Hsiao, H.I., Vorst, J.G.A.J.v.d., Kemp, R.G.M. and Omta, S.W.F. (2010b), “Developing a decision making framework for levels of logistics outsourcing in food supply chain networks”, International Journal of Physical Distribution and Logistics Management, Vol. 40 No. 5, pp. 395-414.

Klein, B., Crawford, R., Alchian, A., 1978. Vertical integration: appropriable rents and the competitive contracting process. Journal of Law and Economics 21, 279–326

Lankford, W.M. and Parsa, F. (1999), “Outsourcing: a primer”, Management Decision, Vol. 37

Lasher, D.R: Ives, B: and Jarvenpaa, S.L. USAA-IBM partnership in information technology: managing the image project. MIS Quarterly, 15, 4 (1991), 551-565.

Leahy S.E., P.R. Murphy and R.F. Poist. (1995). “Determinants of Successful Logistical Relationships: A Third-Party Provider Perspective.” Transportation Journal 35 (2).5-13.

Lieb R.C. and H.L. Randall. (1999). “1997CEOPerspectives on the Current Status and Future Prospects of the Third Party Logistics Industry in the United States. ”Transportation Journal 39 (3).28-41.

Lonsdale, C. (1999), “Effectively managing vertical supply relationships: a risk management model for outsourcing”, Supply Chain Management: An International Journal, Vol. 4 No. 4, pp. 176-83. No. 4, pp. 310-6.

Mckenna. R. The Regis Touch. Readine, MA: Addison-Wesley, 1985.

Rindfleisch, A., Heide, J.B., 1997. Transaction cost economics: past, present, and future applications. Journal of Marketing 61 (4), 30–54.

Shelanski, H., Klein, P.G., 1995. Empirical research in transaction cost economics: a review and assessment. Journal of Law, Economics, and Organization 11, 335–361.

Stratman, J.K., 2008. Facilitating offshoring with enterprise technologies: reducing operational friction in the governance and production of services. Journal of Operations Management 26 (2), 275–287.

TCE (Logistics 12)

Walker, G., Weber, D., 1987. Supplier competition, uncertainty and the make-or-buy decision. Academy of Management Journal 30, 589–596.

Williamson, O.E., 1975. Markets and Hierarchies. Free Press, New York.





How to Cite

Uzair, K., & Siddiqui, D. A. A. (2018). Factors Influencing Logistics Outsourcing in Pakistan. Asian Business Review, 8(1), Art. #2, pp. 13–20. https://doi.org/10.18034/abr.v8i1.3