Purpose
The rationality of human judgment both in our everyday lives and in business contexts is
known to be limited. This paper aims to investigate how logistics outsourcing decisions are
driven by psychological factors and agency of decision-makers.
Design/methodology/approach
Literature was reviewed to identify constructs antecedent to logistics outsourcing intentions
and corresponding measures were developed. The data was gathered through a survey to
supply chain professionals in Finnish manufacturing companies. A measurement model was
reviewed for model reliability and validity and further converted into a structural model for
analysis. The analysis was then performed with partial least squares (PLS) structural
equation modelling on the cases (n=110).
Findings
Supply chain managers objectively consider characteristics of their organization’s logistics
suggested in previous research to be assessed during the outsourcing process, but they also
surprisingly often rely largely on behavioral subjective factors such as their attitudes, social
norms, and perceived control.
Research limitations/implications
The constructed model is limited to the constructs chosen to represent drivers for logistics
outsourcing and could be confirmed with more samples for improved reliability.
Practical implications
Impartiality in the outsourcing decision-making process can be supported by acknowledging
possible biases presented here and searching for related information.
Original/value
This paper emphasizes the role of behavioral factors within procurement function and
contributes to an increasing interest into behavioral supply chain management.
Keywords: logistics outsourcing, theory of planned behavior, behavioral supply chain
management, decision-making, intention, structural equation modelling