Transformation into 4PL: The case of local logistics service providers in Vietnam

JOURNAL OF EASTERN EUROPEAN AND CENTRAL ASIAN RESEARCH Vol.10 No.2 (2023) www.ieeca.o g/jou nal 311 TRANSFORMATION INTO 4PL: THE CASE OF LOCAL LOGISTICS SERVICE PROVIDERS IN VIETNAM T ang T uong Diem Le Tomas Ba a Uni e si y in Zlín, Czech Republic Felici a Ch omjako á Tomas Ba a Uni e si y in Zlín, Czech Republic Vang Dang Quang Ho Chi Minh Ci y Uni e si y o Technology and Educa ion, Vie nam ABSTRACT Fo a ew decades, a new model o logis ics se ice p o ide s (LSP) has appea ed and played he ole o in eg a ing all ope a ions o he supply chain. This model is known as a logis ics in eg a o , o ou h pa y logis ics (4PL). 4PL has eme ged as an ideal con igu a ion o en e p ises a ound he wo ld o e ec i ely u ilize hei esou ces and ob ain cos educ ion ac oss he supply chain. Wi h inc easing compe i ion among en e p ises, cus ome s’ equi emen s o complica ed se ices, and global supply chain managemen , he limi a ions o inbound se ices om LSPs ha e become obs acles o hei de elopmen . As a esul , ans o ma ion in o 4PL is ine i able o LSPs in he global logis ics ma ke . This pape aims o analyze he ole, cha ac e is ics, and bene i s o 4PL. A model o ans o ma ion in o 4PL o local LSPs in Vie nam is cons uc ed o iden i y impac ing ac o s. The esul s poin ou six ac o s in luencing he ans o ma ion p ocess, as well as h ee impo an capabili ies o 4PL. Keywo ds: logis ics; ou h pa y logis ics; ans o ma ion; logis ics se ice p o ide s; supply chain DOI: h p://dx.doi.o g/10.15549/jeeca . 10i2.1018 INTRODUCTION In he la e 1900s and ea ly 2000s, he e ha e been d ama ic changes in he logis ics ield which ha e been conside ed o be i al o he imp o emen o i m p oduc i i y. These changes consis o he g ow h o Thi d Pa y Logis ics (3PL), he eme gence o Fou h Pa y Logis ics (4PL), mo e complica ed pa ne ships, he inc ease o mul imodal anspo a ion o goods, he dec ease o logis ics cos s, and alue chain c ea ion (Li e al ., 2003). Ma ke s ha e, nowadays, become highly compe i i e and u bulen , and a e cons an ly changing. The logis ics indus y has unde gone a deep ans o ma ion o o e h ee decades, due o he p essu e o e e -inc easing expec a ions and demands om cus ome s. Fi s ly, logis ics se ice p o ide s (LSPs) usually in end o hold up hei se ices and sus ainably ope a e as logis ics solu ion p o ide s. In he long un, howe e , he endency o he ma ke c ea es and mo i a es mo e chances o logis ics en e p ises o un as 4PLS wi h la ge p ojec s h ough in eg a ed and coo dina ed ope a ions (Lieb, 2005). LSPs ha e he e o e been changing hei ope a ions and T ans o ma ion in o 4PL: The case o local logis ics se ice p o ide s… T ang T uong Diem Le e al. www.ieeca.o g/jou nal 312 s a egy o become logis ics in eg a o s. Secondly, Biens ock (2002) poin ed ou ha LSPs’ s a egic hough s conce ning ex e nal in o ma ion lows a e use ul o help hem e ain hei places and os e ela ionships wi h hei cus ome s. Acco ding o Che ne a e al. (2015), he business wo ld is signi ican ly impac ed by LSPs’ de elopmen , making i essen ial o en e p ises, managemen p o essionals, and esea che s o ecognize 4PL’s oppo uni ies and challenges. Thi dly, conside ing LSPs as na u al candida es o me ging hei ope a ions o a 4PL, Visse e al . (2004) and Hoek (2006) a i med ha he ans o ma ion mus be s a ed wi h comp ehensi e s a egies. Fu he mo e, g asping he impo ance o logis ics pe o mance, which di ec ly a ec s cus ome s’ e alua ion o logis ics se ice p o ide s, is c ucial. Finally, supply chain managemen is conside ed one o he co e elemen s o success ul 4PL. As i s men ioned by Oli e and Webbe (1982), supply chain managemen aims o c ea e alue o cus ome s h ough mul i-en e p ise in eg a ion and e icien , cos -e ec i e managemen o lows. In his empi ical esea ch, he ac o s in luencing he ans o ma ion in o 4PL o local LSPs in Vie nam a e in es iga ed. Fi s , a li e a u e e iew on a ious de ini ions o 4PL and cons uc s in he model was conduc ed. Then, he PLS-SEM model is applied o iden i y he cons uc s a ec ing local LSPs’ s a egic ans o ma ion in o 4PL. The indings d awn om he s udy ha e conside able implica ions o bo h academic and p ac ical ields alike. LITERATURE REVIEW Fou h Pa y Logis ics (4PL) 4PL has been de inied a iously by esea che s in di e en s udies. The e m 4PL i sel was in oduced and owned by Accen u e Consul ing Company (Dolle and Diaz, 2011). Thei de ini ion o 4PL is s a ed as “an in eg a o ha assembles he esou ces, capabili ies, and echnology o i s o ganiza ion and o he o ganiza ions o design, build and un comp ehensi e supply chain solu ions.” Manu ac u e s and e aile s gain ema kable bene i s hanks o 4PL’s e ec i e coo dina ion be ween LSPs and hei clien s by managing he o e all logis ics ac i i ies. In he la e 1990s, Ga o na men ioned he 4PL concep , which was ecognized as a combina ion o a ious esou ces, speci ic capabili ies, and echnological u iliza ion o assemble and manage comp ehensi e supply chain solu ions. Yao (2010) concluded ha 4PL commendably ope a es an e ec i e, lexible, and easonable in eg a ion o supply chain ac i i ies. Papadopoulou e al . (2013) discussed 4PL as an LSP ha c ea es inc easing e olu ion wi hin he supply chain and ocuses on inno a ion a ibu es. Pa lic Skende e al . (2013) men ioned 4PL as a join en u e be ween cus ome s and LSPs. The e ha e been many o he esea che s who ha e ocused on 4PL and i s ans o ma ion o adap o he new, challenging logis ics ma ke demand, including Li e al . (2003), Visse e al . (2004), Ga o na e al . (2004), he Supply Chain Execu i e Boa d (2005), Hoek (2006), Vi aldini e al . (2008), Win (2008), Ji (2008), and Bajec (2009). 4PL ope a es wi h he aim o e icien ly u ilizing all esou ces, oge he wi h he applica ion o in o ma ion echnology (IT) o simul aneously dec ease he i m’s backwa dness and inc ease bene i s o all connec ed pa ies. As such, 4PL c ea es a compe i i e ad an age in he global logis ics ma ke , o e ing dominan e ec i eness in i s se ice p o ision o clien s. Mo eo e , la e s udies asse ed he impo ance and p eeminen cha ac e is ics o 4PL in he ole o an e ec i e and lexible in eg a o h oughou he ne wo k (Jianming, 2011; Papadopoulou e al ., 2013). T ans o ma ion in o 4PL In ecen yea s, logis ics has been conside ed a key elemen by manu ac u ing and e ailing i ms o de elop sys ems wi hin hei supply chains (Ra ele, 2004). LSPs aim o con inually p o ide logis ics se ices and de elop in o a solu ion p o ide ; howe e , logis ics ansac ions in he ma ke ha e led o a newe endency o deli e ed p ojec s o be la ge and mo e complica ed. As a esul , LSPs ha e aced a challenge in hei ope a ions (Lieb, 2005). The e a e e en highe expec a ions on he pa o cus ome s o he expe ized se ices LSPs p o ide as hey con inue o be mo e p o essional in all ope a ions. To keep up wi h su i al and de elopmen , s a egic logis ics solu ions should be se iously conside ed om he poin o p inciples and ad an ages o all esou ces (Biens ock, 2002). Acco ding o Go indan e al. (2016), 4PLs ha e high capabili ies in op imizing T ans o ma ion in o 4PL: The case o local logis ics se ice p o ide s… T ang T uong Diem Le e al. www.ieeca.o g/jou nal 313 he ne wo k and u ilizing mul i- esou ces. Mo eo e , 4PLs e ec i ely implemen hei ole in in eg a ing i ms pa icipa ing in he supply chain, esul ing in companies coo dina ing wi h 4PL as a s a egic pa ne . Visse e al . (2004) analyzed he ans o ma ion p ocess in o 4PL and sugges ed ha LSPs a e well p epa ed o such ansi ions. Hoek (2006) highligh ed se e al ad an ages in he ansi ion om LSP o 4PL, as ollows: • Enhancing added alue se ices and ejec ing low p o i able ope a ions. • En iching ela ionships wi h cus ome s and in ol ing e o s in cus ome s’ supply chains. • Se ing clien s’ expec a ions and demands based on high u iliza ion o in o ma ion sys ems, bu low dependence on owned physical asse s. METHODOLOGY Resea ch da a In his sec ion, we use s a is ical da a om a da a collec ion su ey o 414 LSPs in he logis ics indus y in Vie nam, as s a ed in Table I. To ensu e he eliabili y and alidi y o he measu emen index, he au ho s use he eliabili y analyses o C onbach’s Alpha and A e age Va iance Ex ac ed (AVE) using Sma PLS 4 o elimina e a iables unin e p e able o he esea ch concep . Table I: Ca ego y o su ey esponden s Field o logis ics ope a ions Quan i y ( i ms) Pe cen age (%) T anspo a ion, o wa ding, and wa ehousing 90 21.74 T anspo a ion and wa ehousing 81 19.56 T anspo a ion and o wa ding 62 14.98 T anspo a ion 60 14.49 Thi d-Pa y Logis ics p o ide s (3PL) 55 13.29 Fo wa ding and wa ehousing 43 10.39 Fo wa ding 09 2.17 T anspo a ion, o wa ding, and shipping agency 09 2.17 Fo wa ding and shipping agency 05 1.21 Sou ce: Au ho s’ calcula ions Sample size The S uc u al Equa ion Model (SEM) is used o analyze he ela ionships be ween ans o ma ion in o 4PL and anspo a ion capabili y, wa ehouse ope a ions, in o ma ion echnology (IT) applica ion, human esou ces, logis ics se ices, anspo a ion in as uc u e, logis ics ou sou cing ends, compe i ion in he logis ics ma ke , and policies in he logis ics indus y. This me hod equi es a la ge numbe o samples due o i s dependence on sample dis ibu ion heo y (Rayko and Widaman, 1995). Howe e , Hai e al . (1998) a i med ha he e a e h ee ypes o he sample size used in SEM, including small size ≤ 100, medium size 100 – 200, and la ge size ≥ 200. The sample size o his s udy is 414, he e o e, i mee s he sample size equi emen o he esea ch. Resea ch gap The numbe o 4PL se ice p o ide s is cons an ly inc easing a ound he wo ld. The e ha e been many esea ch s udies conduc ed sepa a ely on 4PL’s ole and model, analysis and compa ison be ween 3PL and 4PL, sugges ions o he ansi ion om 3PL o 4PL, and model o con lic esolu ions on 4PL de elopmen . Fo he logis ics indus y in Vie nam, he e has only been esea ch conduc ed on s a egic de elopmen in o 3PL o local p i a e logis ics companies in Vie nam. O he s udies ha e mainly ocused on he po en ial and p ospec s o he logis ics indus y in Vie nam, including s udies on he supply chain and logis ics o Vie nam in he con ex o in e na ional economic in eg a ion, assessing he Na ional logis ics sys em o Vie nam, sus ainable de elopmen o logis ics in Vie nam in he 2020-2025 pe iod, human esou ce managemen o logis ics in T ans o ma ion in o 4PL: The case o local logis ics se ice p o ide s… T ang T uong Diem Le e al. www.ieeca.o g/jou nal 314 Vie nam, and using he op imiza ion algo i hm o e alua e and p edic he business pe o mance o logis ics companies. Ne e heless, he e has no been any esea ch on he ans o ma ion om LSP o 4PL, especially in he con ex o local LSPs in Vie nam. Resea ch hypo heses H1: High anspo a ion capabili y os e s local LSPs’ s a egic ans o ma ion in o 4PL in Vie nam. One o he key elemen s o logis ics se ice is he anspo a ion capabili y o LSPs. Pa k (2011) poin ed ou ha he main elemen s o compe i i eness be ween companies include human esou ces, anspo a ion capabili y, inance, da abase, and asse s. T anspo a ion planning p o ides he oppo uni y o i ms o maximize cos -e ec i eness when i e icien ly in eg a es collabo a i e pa ne s (Mason e al ., 2007). Logis ics ope a ions could p o ide high- quali y se ices when LSPs ha e ad anced anspo a ion sys ems. Due o he ema kable signi icance o anspo a ion, he e alua ion o he e iciency o anspo a ion modes ha e been conduc ed by many schola s, including Smi h and Nash (2014), Mandic e al ., (2014), Chakh ou a and Pojani (2016), Rodse h (2017), and Cui and Li (2017a, 2017b, 2017c). H2: E ec i e wa ehouse ope a ions ha e a posi i e in luence on local LSPs’ s a egic ans o ma ion in o 4PL in Vie nam. Wa ehouse ope a ions a e i al in logis ics se ices since wa ehouse p ocesses pe o m ac i i ies in he supply chain, including ma e ial s o age, ma e ial di ision, packaging, ga he ing, and alloca ing. The s udy o Kłodawski e al . (2017) showed a li e a u e e iew on a ious s ochas ic models o analyzing wa ehouse ope a ions and ele an wa ehouse s a egies h ough esea ch conduc ed by Le-Duc and Kos e (2005). Kłodawski e al . (2017) poin ed ou ha con inuous and p ope wa ehouse ope a ions a e e y impo an o signi ican ly impac ing he whole supply chain. H3: The absolu e le el o ad anced IT applica ion has a posi i e impac on local LSPs s a egic ans o ma ion in o 4PL in Vie nam. Schola s (Sabhe wal and Jeya aj, 2015; Chaysin e al ., 2016) ha e also highligh ed he ole and use ulness o IT applica ions in dis ibu ion, especially whe e hey aim a cos - e ec i eness, se ice quali y, and small s ock. S udies execu ed by many schola s, including Pinna e al . (2010), E angelis a e al . (2012), Ghobakhloo and Hong (2014), and Wong e al . (2016), poin ed ou he enhancemen o logis ics pe o mance based on IT u iliza ion. Acco ding o Sau age (2003), IT in es men would lead la ge LSPs o achie e supe io ad an ages and become leade s in he global logis ics ma ke . H4: High-quali ied human esou ces c ea e a posi i e in luence on local LSPs’ s a egic ans o ma ion in o 4PL in Vie nam. A skilled wo k o ce is essen ial o unning a s able and complica ed logis ics sys em. Bene i s gained om human esou ce pe o mance including ec ui ing, aining, and assessmen , all o which help i ms imp o e he e ec i eness o he whole supply chain and enhance compe i i e ad an ages (Hall e al ., 2013). Okeudo (2012), h ough da a collec ed om LSPs, concluded ha LSPs will imp o e hei pe o mance i he e is an inc ease in in es men in human esou ces. Kam e al . (2010) s udied he ela ionship be ween human pe o mance and logis ics capabili ies and poin ed ou ha bene i s and pe o mance managemen mechanisms inc ease he commi men and capabili ies o LSPs. H5: Ad anced logis ics se ices ha e a posi i e impac on local LSPs’ s a egic ans o ma ion in o 4PL in Vie nam. Mangan e al . (2008) s a ed ha “Logis ics in ol es ge ing, in he igh way, he igh p oduc , in he igh quan i y and igh quali y, in he igh place a he igh ime, o he igh cus ome a he igh cos .” In line wi h his concep , logis ics se ices consis o i e main componen s: IT, s ock, anspo a ion, wa ehousing, and packaging. These ac i i ies s a wi h supplie s and end wi h cus ome s. Logis ics se ices a e designed by LSPs o ensu e ha clien s a e se ed wi h he lowes cos s and highes e iciency (Badenho s -Weiss & Waugh, 2014). O e s in logis ics se ices ha a e deli e ed by LSPs ha e imp o ed o he poin o ad anced se ice p o ision wi h complex alue- added anspo and wa ehousing ac i i ies (Sel ia idis and Sp ing, 2007). H6: Good anspo a ion in as uc u e os e s local LSPs’ s a egic ans o ma ion in o 4PL in Vie nam. Fechne (2011) s a ed ha anspo a ion in as uc u e, consis ing o land, ha bo , and T ans o ma ion in o 4PL: The case o local logis ics se ice p o ide s… T ang T uong Diem Le e al. www.ieeca.o g/jou nal 315 ai way sys ems, as well as in o ma ion and communica ion echnology (ICT), ha e high signi icance in he logis ics se ice indus y. The linea logis ics in as uc u e o nodes in anspo a ion e ec i ely suppo s LSPs in p o iding logis ics ac i i ies, including packaging, wa ehousing, deli e y, and ansshipmen . Logis ics pe o mance, cos - e ec i eness, and quali y assu ance would be enhanced when he e is a well-in es ed anspo a ion sys em, c ea ing a ema kable ad an age o LSPs no only in ope a ion e iciency, bu also in hei posi ion in he logis ics ne wo k. H7: The g ow h o he logis ics ou sou cing end c ea es a posi i e impac on local LSPs’ s a egic ans o ma ion in o 4PL in Vie nam. The g ow h o logis ics ou sou cing has a i med a powe ul end in he global ma ke . Solaki e al . (2013) poin ed ou ha inancial sa ings, esou ce ulness, and comp ehensi e ope a ions a e co e ac o s o companies in using logis ics ou sou cing. Ou sou cing is conside ed one o he i al s a egies o an en e p ise’s business o ake ad an age o ou side esou ces o non-co e ac i i ies and o ocus on s a egic unc ions o long- e m de elopmen . O he schola s ha e s a ed ha logis ics ou sou cing c ea es chances o en e p ises o achie e hei aims, such as cos - e ec i eness, p oduc ion enhancemen , esou ce ulness, and business g ow h (Aimi, 2007; Ba dhan e al., 2006; Lau and Zhang, 2006). H8: The inc ease o compe i ion in he logis ics ma ke causes a posi i e in luence on local LSPs’ s a egic ans o ma ion in o 4PL in Vie nam. Recen ly, LSPs, unde he equi emen s o economic globaliza ion, ha e ocused on enhancing hei capabili ies in o de o gain hei clien s’ sa is ac ion. The su i al and g ow h o LSPs depend on he success ul u iliza ion o hei capabili ies and co e esou ces (Lu & C.S, 2007). As a esul , he es ablishmen o a de elopmen s a egy has been ecognized o be signi ican o LSPs in an inc easingly compe i i e ma ke . Acco ding o he 2017 epo on logis ics in Vie nam, issued by The Minis y o Indus y and T ade o he Socialis Republic o Vie nam, compe i ion in he global logis ics ma ke has become mo e ie ce. La ge logis ics se ice p o ide s h oughou he wo ld hold a ound 15% o he global logis ics ma ke sha e. H9: Comple ed go e nmen policies in he logis ics indus y c ea e posi i e s imula ion o local LSPs’ s a egic ans o ma ion in o 4PL in Vie nam. The mechanism and policies o logis ics indus y de elopmen ha e a i al signi icance o LSPs. Acco ding o esea ch conduc ed by Jin (2012) and Liu e al . (2013), he e a e wo le els o de elopmen policies o he logis ics indus y, consis ing o na ion and egion. Na ional logis ics policies a e issued o encou age he de elopmen o he mac oeconomy, while egional logis ics policies mainly ocus on he speci ic cha ac e is ics o di e en egions. Scales o measu emen In he p esen s udy, scales o measu emen a e es ablished o 10 cons uc s, wi h a o al o 31 indica o s. All indica o s a e measu ed on a i e-poin Like scale (1 = Ve y high, 2 = High, 3 = Medium, 4 = Low, 5 = Ve y low). The speci ic cons uc s and indica o s a e as ollows: Table 2: Resea ch cons uc s and indica o s Cons uc s Indica o s T anspo a ion capabili y (TRA) TRA1: Owned means o anspo a ion TRA2: Speed o anspo a ion na ionally and in e na ionally TRA3: Connec ion o anspo a ion chain and logis ics se ices Wa ehouse ope a ions (WOP) WOP1: Scale o owned wa ehouse WOP2: Technology applica ion WOP3: Ra e o e o s WOP4: C oss-docking u iliza ion Ad anced IT applica ion (ITA) ITA1: Highly quali ied IT human esou ces T ans o ma ion in o 4PL: The case o local logis ics se ice p o ide s… T ang T uong Diem Le e al. www.ieeca.o g/jou nal 316 Cons uc s Indica o s ITA2: Ad anced IT in as uc u e ITA3: S ong pa ne ing ela ionship be ween IT and logis ics se ice managemen Human esou ces (HMR) HMR1: Specialized compe ence HMR2: Planning and con olling capabili y HMR3: Lea ning and in eg a ing compe ence Logis ics se ices (LOS) LOS1: P o ision o di e si ica ion and s a egy cus omiza ion o logis ics se ices LOS2: P o ision o alue-added se ices o cus ome s LOS3: Logis ics se ice cos s T anspo a ion in as uc u e (INF) INF1: Ai po in as uc u e INF2: Ha bou in as uc u e INF3: Land in as uc u e The g ow h o logis ics ou sou cing end (OUT) OUT1: T end o logis ics ou sou cing OUT2: Size o an o ganiza ion adop ing logis ics ou sou cing OUT3: Le els o logis ics ou sou cing Compe i ion in he logis ics indus y (COM) COM1: Numbe o i als who a e LSPs in he logis ics ma ke COM2: Ma ke sha e o LSPs in he logis ics ma ke COM3: Types o i als’ logis ics se ice p o ision: 2PL, 3PL, 4PL Policies in he logis ics indus y (POL) POL1: Policies in he logis ics indus y POL2: Suppo ed policies o LSPs POL3: Di ec ions and s a egies o go e nmen o he de elopmen o he logis ics indus y T ans o ma ion in o 4PL (4PL) 4PL1: Value chain c ea ion 4PL2: In eg a ion o mul iple 3PL p o ide s’ ac i i ies 4PL3: Managemen compe ence in global supply chain Sou ce: Au ho s’ s udy RESULTS AND DISCUSSION Fi s , he eliabili y o he esea ch model was assessed. Known as he coe icien de e mina ion, he R-Squa ed o mula de ines he deg ee o which he a iance in he dependen a iable can be explained by independen a iables. F om he esul s o boo s apping, he R-Squa e o he model is 0.644, and he R-Squa e Adjus ed is 0.636 (as shown in Figu e 1). This means ha 63,6% o he a ia ion in he dependen a iable (4PL) is explained by independen a iables (TRA, ITA, HRM, LOS, COM, OUT, WOP, INF, and POL). Wi h his esul , he eliabili y o he esea ch model is demons a ed. Table 2: Con inued T ans o ma ion in o 4PL: The case o local logis ics se ice p o ide s… T ang T uong Diem Le e al. www.ieeca.o g/jou nal 317 Figu e 1: Model o ans o ma ion in o 4PL Sou ce: Au ho ’s es ima ions om Sma PLS Based on he ecommenda ions o PLS-SEM heo y and he li e a u e o Hai e al. (2017), he cons uc s’ eliabili y le els a e e alua ed using Dijks a-Hensele ’s ho, along wi h C onbach’s alpha, coe icien s. As shown in Table III, all alues exceed he h eshold o 0.5 and indica e s ong coe icien s o he cons uc ’s eliabili y, as sugges ed by Bagozzi & Yi (1998) and Hai e al. (2019). Table 3: Cons uc Reliabili y and Validi y Cons uc C onbach's alpha(α) Dijks a-Hensele 's ho_A Composi e Reliabili y A e age a iance ex ac ed (AVE) COM 0,886 0,891 0,930 0,816 HRM 0,878 0,887 0,925 0,806 ITA 0,896 0,909 0,936 0,829 OUT 0,713 0,717 0,839 0,634 LOS 0,894 0,912 0,934 0,825 POL 0,872 0,891 0,921 0,795 4PL 0,767 0,768 0,866 0,683 TRA 0,715 0,805 0,847 0,662 INF 0,864 0,875 0,916 0,785 WOP 0,907 0,920 0,935 0,783 Sou ce: Au ho ’s es ima ions om Sma PLS T ans o ma ion in o 4PL: The case o local logis ics se ice p o ide s… T ang T uong Diem Le e al. www.ieeca.o g/jou nal 318 The S anda dized Roo Mean Squa e Residual (SRMR) alue was also conside ed in o de o measu e he app op ia e le el o he model o he esea ch con ex . Acco ding o Hu and Ben le (1999), he SRMR alue mus be lowe han 0.08 o 0.1. Mo eo e , Hensele e al . (2014) also a i med ha he SRMR alue de e mines “goodness o i ” in PLS-SEM. This alue is measu ed o a oid model misspeci ica ion. Table IV shows he SRMR alue o he esea ch model as 0.049, again demons a ing he app op ia eness o he model. Table 4: S anda dized Roo Mean Squa e Residual (SRMR) O iginal sample (O) Sample mean (M) 95% 99% Sa u a ed Model 0.049 0.034 0.037 0.038 Es ima ed Model 0.049 0.034 0.037 0.038 Sou ce: Au ho ’s es ima ions om Sma PLS Rega ding indica o loadings o la en cons uc s, he eliabili y o indica o s mus gain ou e loadings highe o equal o he h eshold o 0.5 o mee he s anda d o eliabili y, while composi e eliabili y mus be highe o equal o 0.7 (Hulland, 1999). All i ems in he model a e loaded meaning ully and sa is ac o ily o hei co esponding cons uc s. Values a e p esen ed in Table 5. Con e gen Validi y is used o e alua e he s abili y o scales. Fo nell and La cke (1981) poin ed ou ha A e age Va iance Ex ac ed (AVE) mus be highe o equal o 0.5 o indica e sa is ac o y con e gen alidi y. The cons uc s in he s udy ha e minimum o maximum alues om 0.634 o 0.829. The e o e, hese alues a e sa is ac o y. The de ails a e s a ed in Table 5. Table 5: Indica o s’ Ou e Loadings, Cons uc s’ Composi e Reliabili y, and A e age Va iance Ex ac ed (AVE) Cons uc Indica o Ou e Loadings Composi e Reliabili y A e age Va iance Ex ac ed (AVE) 4PL 4PL1 0.801 0.866 0.683 4PL2 0.833 4PL3 0.843 COM COM1 0.953 0.930 0.816 COM2 0.871 COM3 0.884 HRM HMR1 0.950 0.925 0.806 HMR2 0.861 HMR3 0.879 INF INF1 0.865 0.916 0.785 INF2 0.909 INF3 0.884 ITA ITA1 0.958 0.936 0.829 ITA2 0.883 ITA3 0.889 LOS LOS1 0.960 0.934 0.825 LOS2 0.870 LOS3 0.893 OUT OUT1 0.799 0.839 0.634 OUT2 0.826 OUT3 0.763 POL POL1 0.857 0.921 0.795 POL2 0.926 POL3 0.891 TRA TRA1 0.929 0.847 0.662 TRA2 0.511 TRA3 0.928 WOP WOP1 0.940 0.935 0.783 WOP2 0.857 WOP3 0.850 WOP4 0.890 Sou ce: Au ho ’s es ima ions om Sma PLS T ans o ma ion in o 4PL: The case o local logis ics se ice p o ide s… T ang T uong Diem Le e al. www.ieeca.o g/jou nal 319 A Disc iminan Validi y assessmen aims o ensu e ha a e lec i e cons uc has he s onges ela ionships wi h i s indica o s in he PLS pa h model (Hai e a ., 2017), whe ein he squa e oo o AVE mus be highe han he La en Va iable Co ela ions. The squa e oo s o he AVE o he esea ch cons uc s a e shown in bold diagonals in Table 6. Table 6: Disc iminan Validi y Cons uc COM HMR ITA OUT LOS POL 4PL TRA INF WOP COM 0.903 INF 0.110 0.886 POL 0.124 0.219 0.892 OUT 0.177 0.130 0.111 0.796 LOS 0.074 0.282 0.201 0.114 0.908 ITA 0.152 0.283 0.271 0.206 0.311 0.911 4PL 0.421 0.332 0.275 0.426 0.444 0.600 0.826 TRA 0.184 0.362 0.268 0.206 0.410 0.324 0.460 0.814 HMR 0.233 0.072 0.233 0.242 0.052 0.106 0.340 0.115 0.898 WOP 0.194 0.371 0.249 0.169 0.385 0.262 0.381 0.538 0.204 0.885 Sou ce: Au ho ’s es ima ions om Sma PLS To e alua e whe he he e a e ela ionships be ween cons uc s, he S uc u al Equa ion Model is used. When he - alue is highe han 1.96, i means ha he signi ican le el is lowe han 5% (p- alue < 0.05). Ou e Weigh s a e c i e ia showing he ela i e con ibu ion o each indica o . In he S uc u al Equa ion Model (SEM), Ou e Weigh s a e o en lowe han Ou e Loadings (Hai e al., 2014). To e alua e whe he indica o s con ibu e o he es ablishmen o la en a iables, boo s apping should be used. In his s udy, he so wa e Sma PLS 4 was used o build a S uc u al Equa ion Model wi h 5,000 boo s ap samples. A e comple ing he es ablishmen o he esea ch model, implemen ing he assessmen o he model is essen ial. The e a e a ious ways o e alua e he eliabili y o he esea ch model. Fi s , he sample may be di ided in o wo sub- samples, wi h one used o building he esea ch model and he emaining used o ee alua e he eliabili y o ha esea ch model. The eliabili y o he model may also be assessed by collec ing mo e samples. Ande son and Ge bing (1988), howe e , s a ed ha SEM equi es a la ge numbe o samples and consumes exo bi an ime and cos s o esea che s. Schumake and Lomax (2016) hen assumed ha boo s apping is app op ia e o apply due o i s epea ed sample me hod, while he ini ial samples emain o be majo pa s. The boo s apping me hod uses he ob ained sample da a om he s udy o esample i a ious imes o c ea e many simula ed samples. The sampling dis ibu ions a e conside ed he ounda ion o con idence in e als and hypo hesis es ing, wi h he - alue calcula ed based on he dis ibu ions o c ea ed samples. Table 7: Pa h Coe icien and Cons uc Rela ionships E ec Boo s apping esul s Empi ical ema ks O iginal Coe icien Mean alue S anda d de ia ion - alue p- alue COM -> 4PL 0,244 0,245 0,033 7,345 0,000 Suppo ed HRM -> 4PL 0,165 0,165 0,032 5,082 0,000 Suppo ed ITA -> 4PL 0,384 0,383 0,032 11,912 0,000 Suppo ed OUT -> 4PL 0,208 0,209 0,035 6,022 0,000 Suppo ed LOS -> 4PL 0,208 0,208 0,039 5,352 0,000 Suppo ed TRA -> 4PL 0,127 0,127 0,040 3,137 0,002 Suppo ed POL -> 4PL -0,009 -0,008 0,031 0,282 0,778 No suppo ed INF -> 4PL 0,056 0,056 0,034 1,640 0,101 No suppo ed WOP -> 4PL -0,002 -0,002 0,038 0,054 0,957 No suppo ed