Managing Relationship Quality and Logistics Integration to Improve Distribution Performance

Current status quo of the rapidly changing conditions of the business environment, suggests a notion in which an organization should continuously reconstruct itself through collaboration of its internal functions and external business partners if it is to survive. Firms with non-integrated business processes and weak collaborative relationships are less likely to survive the fiercely competitive global markets. As a result, increasing number of firms are acknowledging the significance of relationship quality management and logistics integration. Prior research has argued that business relationship quality mediated by logistics integration has shown positively related to distribution service performance. Hence, firms attempt to achieve higher levels of logistics service and distribution service performance through logistics integration. This study examines relationship quality and logistics integration to understand how the two factors are linked to distribution service performance.