Redefining the boundaries of the firm: the role of 4PLs

Abstract

Purpose

The purpose of this paper is to analyse the specific valuable partnership between human capital-intensive firms (HCIFs) and fourth-party logistics (4PLs), and in particular, to explore the way boundaries of HCIFs are changing as a consequence of the growing importance of 4PLs.

Design/methodology/approach

The paper represents the viewpoints of the authors as far as the role of 4PLs in the changing boundaries of HCIFs is concerned. It is based on a literature review, especially on the analysis of the recent works on organizational boundaries developed by Garicano, Santos and their co-authors. It establishes the prerequisites on the actors of the phenomenon and provides a knowledge-based conceptual framework to understand their dynamic relationship.

Findings

The authors show that the relationship between a HCIF and a 4PL represents a balance of power between two partners based on the co-specialized human capital provided by each of them. From four main propositions, the authors explain that the HCIF extends its boundaries and create more value through the in-house and outside critical human capital it uses.

Originality/value

The specific partnership between HCIFs and 4PLs has been rarely mentioned in the economics and management literature. This interdisciplinary viewpoint essentially provides both academics and practitioners with a conceptual map of 4PLs and HCIFs research and also points out opportunities for future research.

Citation

Cezanne, C. and Saglietto, L. (2015), "Redefining the boundaries of the firm: the role of 4PLs", The International Journal of Logistics Management, Vol. 26 No. 1, pp. 30-41. https://doi.org/10.1108/IJLM-06-2012-0054