RELATIONAL GOVERNANCE STRUCTURE TO MODEL LOGISTICS CUSTOMER SERVICE

Abstract

Using the agency theory as a theoretical foundation; this study investigates the effects of relational governance structure on logistics customer service in association of risk management and reward sharing as intervening variables. Survey data of seventy logistics customer service provider firms was collected from Pakistan and analyzed with partial least squares based structural equation modeling (PLS-SEM). Results revealed that there is a positive relationship between relational governance structure and logistics customer service. Additionally, risk management mediates the relationship of relational governance structure with logistics customer service. However, reward sharing does not intervene the relationship of relational governance structure and logistics customer service. Logistics customer service provider firms need to consider risk factor. This study fills a gap in our understanding of the effects of relational governance structure on logistics customer service in association of risk management and reward sharing.