Network orientation of logistics service providers: the construct, dimensionality, and measurement

Abstract

Business orientation constructs have contributed to the understanding of firm-level conduct and performance heterogeneity. Empirical work on business orientations has focused on developing characterizations of a firm’s propensity to engage a variety of behaviors, e.g. strategic, market, and entrepreneurship orientations. While significant progress in the refinement of these constructs has been made, there is need to transcend the established notions of how managerial focus has been typified. Therefore, our study posits that an orientation scale can be developed to depict the ways that organizations position themselves and how they choose to pursue opportunities that are embedded within their networked relationships. We synthesize prior theoretical work to develop the network orientation construct; alongside various derived dimensions and operational indicators. To validate the measurement scale we use exploratory and confirmatory factor analysis on a sample of 305 respondents from the logistics service industry. The results support four out of five theoretically derived dimensions: structural network embeddedness, the interaction of indirect relations, interdependence within the network, and resources sharing. Additionally, we examine the nomological validity of the network orientation construct and find an indirect association with performance through the development of organizational capabilities.