The role of TPLs in innovative logistics solutions in importation

Razzera, Alessandra Vitorino; Machado, Marcelo André Article The role of TPLs in innovative logistics solutions in importation Innovation & Management Review Provided in Cooperation with: University of São Paulo, School of Economics, Management, Accounting and Actuarial Sciences (FEA-USP) Suggested Citation: Razzera, Alessandra Vitorino; Machado, Marcelo André (2018) : The role of TPLs in innovative logistics solutions in importation, Innovation & Management Review, ISSN 2515-8961, Emerald, Bingley, Vol. 15, Iss. 1, pp. 73-91, https://doi.org/10.1108/INMR-02-2018-005 This Version is available at: https://hdl.handle.net/10419/231577 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ The role of TPLs in innovative logistics solutions in importation Alessandra Vitorino Razzera Independent Researcher, Porto Alegre, Brasília, Brazil, and Marcelo André Machado UNISINOS Business School, Porto Alegre, Brazil Abstract Purpose –The purpose of this paper is to investigate the role of third-party logistics providers (TPLs) in providing innovative logistics solutions for Brazilian importations. Design/methodology/approach –A multiple case study has been conducted in which four logistics service providers are interviewed on the topic of innovation in importation logistics. The collected data (interviews, brochures and presentations) were triangulated and analyzed. Findings –The collected data highlight the integrating role of TPLs in providing innovative logistics solutions of the technological nature, in addition to drivers, which involve communication, trust, logistics and institutional actions. Research limitations/implications –This study, instead of focusing on procedural issues, intended to focus on two important theoretical and practical drivers: innovation in the importation process and strengthening of intangible factors. It is known that trading conditions and geographical proximity have an impact in importation, but they have not been discussed here because of the subject delimitation of the present study. Regarding the implications of the present study, no specific theoretical reference has been found on the subject in terms of the importation process but is rather related to information technology, which is then presented. Practical implications –This study focuses on the fundamental role of TPLs in the development of innovative logistics solutions in importation. Social implications –The fundamental role of TPLs in the development of innovative logistics solutions in importation is based on trust and relationship, internal and external to the organization. Originality/value –This study, instead of focusing on procedural issues, intends to focus on two important theoretical and practical drivers –innovation in the importation process and strengthening of intangible factors –suggesting that a change of mind-set and a differentiated background in importation logistics are developed by TPLs. Keywords Innovation, Logistics, Third-party logistics, Supply chain, International logistics, Brazilian importation Paper type Research paper 1. Introduction The opening of the Brazilian trade in the 1990s reduced non-tariff barriers, considerably increasing importations, given that international logistics are characterized to facilitate the © Alessandra Vitorino Razzera and Marcelo André Machado. Published in the Innovation & Management Review. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode Role of TPLs 73 Received 16 October 2016 Accepted 27 July 2017 Innovation & Management Review Vol. 15 No. 1, 2018 pp. 73-91 Emerald Publishing Limited 2515-8961 DOI 10.1108/INMR-02-2018-005 The current issue and full text archive of this journal is available on Emerald Insight at: www.emeraldinsight.com/2515-8961.htm flow of business in the activities of the supply chain. Due to its dynamic nature, International Logistics trade requires innovation to maximize efficiency, according to Luo (2012). From 1997 to 2014, Brazilian importations increased from US$60 to 229bn, almost four times higher according to data from MDIC[1](www.mdic.gov.br). Given this scenario, supply chain activities assume an increasingly important role in a global, dynamic and competitive market (David and Stewart, 2010). Within the area of operations, the supply chain function involves the flow of goods, services and information from the raw material level to processing, distribution and consumption (Tompkins and Harmelink, 2004). Importation is a process in this flow. Third-party logistics providers, or TPLs, are companies that operate international logistics activities on behalf of others (Delfmann et al., 2002), like international transportation and customs clearance. They are key to this process, as they have expertise in supply activities, according to Alston and Kelly (2012). They are part of many different supply chains and need to be constantly improved to ensure that superior value is delivered to the customer (Flint et al.,2008). The complexity of importation bureaucracy makes an international innovative approach seem necessary, seeking to address the infrastructure problems of countries, according to Demant (2011).Luo (2010) defended that, through innovation in information, technology and services, it is possible to increase market gains because of this competitive advantage. Busse and Marcus Wallenburg (2011) argued that innovation in logistics should occur within importing customers rather than TPLs. To Flint et al. (2005), the customers of TPLs are the ones that drive innovation, but Wagner and Sutter (2012) mentioned that little is known about the synergy between these TPLs and the customers and how they engage each other in innovation projects, as well as the benefits that can come from it. For Busse (2010), there is a gap in TPLs’innovation performance that is not possible to explain. Bajec (2011) agreed with Busse (2010), indicating that there is a theoretical gap about the logistics innovation development and, according to Aykol et al. (2013), methods of acquiring information about importation and operation management in importations are useful themes to be studied. These authors also mentioned that many studies do not address the fact that importation is a strategic activity inside the companies, adding that there could be a possibility of exploring a global process exchange in the companies. Given this context, the existence of an opportunity to explore the theme of innovation is remarkable, more specifically innovation in importation and the role of TPLs in it. The present research sought to analyze the role of four TPLs in the development of innovative importation logistics solutions in Brazil and also to understand what innovation in importation logistics means to them. Thus, this article intends to answer the following question: What is the role of TPLs in the development of innovative logistics solutions? To achieve this, the main objective has been defined as the analysis of the role of the four TPLs in the development of innovative logistics solutions in Brazilian importations. To structure this main objective, four specific stages have been identified: (1) To present the four TPLs and the type of relationship they have with customers. (2) To describe what the TPLs understand by innovation in importation processes. (3) To identify the critical aspects that contribute to or hinder the development of innovative logistics solutions in importations. (4) To indicate actions for the development of innovative logistics solutions in Brazilian importations. This paper includes five sections. Following the introduction, there is a theoretical review in Section 2, regarding the main subjects involved: supply chain, importation and TPLs, INMR 15,1 74 having an innovation perspective inside each one. Section 3 presents the method used to develop this qualitative multiple case study. Section 4 presents the four TPLs studied, as well as the respective cross analysis of the cases. Finally, Section 5 presents the research conclusions about the role of TPLs in innovative logistics solutions for Brazilian importations. 2. Theoretical background 2.1 Supply chain and innovation Supply chain management integrates the flow of materials through logistical networks, according to Halld orsson and Skjøtt-Larsen (2004). It evolves technologically along with communications and transportation. It aims at continuous improvements to reach a sustainable competitive advantage, according to Ballou (2007). Moreover, it is a business support activity that, in addition to the primary ones, facilitates value creation, which is related to what customers are willing to pay for the products (Porter, 1989;Kaplan and Norton, 2008). Technological innovation is a competitive advantage for market share and in the supply chain components, considering there is a competitive interdependence (Porter, 1989;Luo, 2010). Customers look for innovative support in information technology, generating competitive advantage through its technological infrastructure (Freeman, 2004;Wagner and Sutter, 2012). Yang (2012) states that cost-oriented enterprises usually achieve high levels of efficiency but suffer a gap in adaptive innovation, not promoting supply chain growth. Prest and Sopher (2014) said that much of what is invested in the supply chain is meant to support the continuity of the processes rather than innovation. The authors add that scarcity of talents and focus on cost are barriers for supply chain innovation as a priority. There are, however, innovation priorities such as multichannel logistics and analytical tools in the supply chain that can enable the communication of innovative ideas, reducing costs and risks. To gain agility, it is necessary to anticipate market demands; this can be done by improving the value proposition focused on innovation, according to Flint et al. (2008), thus having the whole chain involved in the innovation process. On example of logistics tools that can drive innovation, Blind and Jungmittag (2004) said that foreign investments in importation have a positive effect on innovative processes. For Prest and Sopher (2014), the mobility-integrated systems, M2M (mobility/machine-to-machine), are being seen as an innovative strategic issue, focusing on the areas of operations and inventory in the supply chain partners, as well as 3D printers, which are being considered emerging innovations. On the other hand, these authors say that sustainability can either be an innovation, increasing the value of their brands, or a barrier to it, considering the counterpoint of cost demand of some projects such as green transportation/green fuels and the cost-reduction focus of the supply chains. There is also big data, a tool that provides an option to target customer needs (Tan et al.,2015). Further, according to Busse and Marcus Wallenburg (2011), people are a relevant input to companies seeking innovation, followed by physical and financial resources. Commitment and internal integration of employees, before external, reinforced by management at a strategic level, are rather important for the success of the supply chain and mitigation of barriers (Alfalla-Luque et al.,2015). 2.2 Importation process Importation is the process of managing the purchase of products from a foreign origin until its final destination. Research regarding importation started in the early 1960s, with a Role of TPLs 75 procedural article written by O’Connell and Benson (1963) discussing the idea that for it to be profitable, it would require personnel abroad, foreign products and processes, foreign internal partners and supplies from abroad. According to Aykol et al. (2012), at that time, foreign products and processes stood out in successful companies as reasons for market share gains. Low prices and improvements in products were mentioned as an importation trend, explaining the external supply competitiveness, as well as the concept of partners, which allowed an importation increase in the 1960s, even though in a small proportion. Flexibility was the key driver indicated at that time for importation activities. The importation process can be considered an interdependent process that is quite complex by itself. As a result, there are many critical aspects involved in it. Segalis (2015) say that importation is subject to governmental control, through fiscal, administrative, foreign exchange or operational norms and procedures. According to David and Stewart (2010), each country defines its complex customs procedures, rules and regulations for the entry of goods, and there can be a lot of pitfalls and paperwork involved. This explains why countries do not like to import, thus acting in accordance with this principle. The operation of the local customs system involves importation duties, classification of goods, customs valuation, country-of-origin rules, importation taxes definition and also non-tariff barriers, such as importation quotas or limits, pre-shipment inspections and the request for complex documents. 2.2.1 Innovation in importation. In importation, according to the Oslo Manual (OECD, 1997), process innovation refers to new and significantly improved processes, whereas technological process innovation is characterized by the implementation/production or commercialization of new or improved methods, which may involve changes in equipment, human resources, working methods or a combination of these. Technological innovation occurs in the characteristics of process performance. It depends on how important these characteristics and innovations are for the sales of the company. TPP (technological product and process) innovation activities are the scientific, technological, organizational, financial and commercial steps aimed at the implementation of technologically new or improved processes, which may be innovative or not, yet they are required for the implementation. As per the Oslo Manual (OECD, 1997), a company innovates when it has a cost advantage over its competitors on processes that elevate productivity and allow a greater margin with more market share and profitability. Information is the basis of importation processes, which depends on technological infrastructure that affects the competitive advantage of the companies (Porter, 1989;Luo, 2010;Lieb and Bentz, 2005). Freeman (2004) indicates factors that modify the infrastructure and generate a competitive advantage related to innovation. It involves quality, research, development, design and manufacturing attributes. The author indicates that innovative leadership comes from a combination of public investment in technological infrastructure and intellectual capital as the basis for economic development. 2.3 Third-party logistics Logistics agents operate logistics services, which depend on the inputs of information about their origins and destinations (Flint et al.,2008). They act in logistics services offering complete solutions for their customers, allowing them to focus on their core business activities rather than on the flow of materials, as described by Vasiliauskas and Jakubauskas (2007).Hertz and Alfredsson (2003) said that the TPLs manage, control and deliver logistic activities. The services and benefits obtained depend on how the provider balances the activities and resources of several clients, in addition to the level of adaptation to the client itself. Halld orsson and Skjøtt-Larsen (2004) described how important it is for the INMR 15,1 76 logistics management to have a clear main objective when hiring a TPL, whether it is cost efficiency, service improvement or focus on the company’s business, developing complementary competences this way. According to Sakchutchawan et al. (2011), companies need to closely build and manage long-term relationships with customers, mutually benefiting the business relationship, in which not only financial matters but also relational ones are included. Regarding the types of TPLs and their relationship with the customers, Hertz and Alfredsson (2003) described the adaptation level considering two driving forces: competitiveness at an international level and outsourcing that ranges from a standard TPL, which offers services to a large number of customers, to a complex one that works at a consultant level with fewer clients. Vasiliauskas and Jakubauskas (2007) explained TPL activities starting at 1PL and going until 5PL. According to them, a 1PL offers transportation services for small local businesses; a 2PL is an agent with a small number of assigned roles added; a 3PL is the one that integrates the operation; a 4PL integrates the network and operational point of contact; and, finally, a 5PL is the one that provides complete solutions for the whole supply chain. Su et al. (2014) said that the major contributions of the TPLs are related to specialization, outsourcing, logistics strategy, globalization, lead time improvement and customer orientation, reduction of transit times and customer orientation. Trust is especially important for the relationship between TPLs and customers when they decide to outsource activities such as information integration, relationship building, TPL selection criteria and performance evaluation criteria, which are significantly and positively related to the company’s performance, as per Jayaram and Tan (2010).Tsai et al. (2012) pointed out the risks in TPLs’relationship with customers, highlighting relevant communication, competences, abilities, human resources and information as the ones with the largest impact. 2.3.1 Innovation through third-party logistics. Despite the integration, little is known about the synergy between TPLs and customers in terms of project innovation or about the benefits that can be gained from such activities, according to Wagner and Sutter (2012). Innovation in TPLs is a subject in its initial stage of discussion. Factors like integration, new services, complementary investment relationship and benefit-sharing agreement are the factors that influence an innovation project, as per Wagner and Sutter (2012) and Su et al. (2014). Concerning innovation management in TPLs, according to Lin (2008), it is the concept of a new product or service that is used to offer a new solution, which supports an activity of the company to offer a new product, as a design or as a way of advertising the product. Schumpeter (1934) said that creative destruction is a healthy process for a developing economy, with recession being an inevitable factor for it. For this article, innovation is understood as the degree to which customers perceive solutions in terms of services offered by TPLs as being new and useful, as proposed by Wagner and Sutter (2012). From Laursen and Salter’s (2006) point of view, companies that search for strategies in depth are more open, create their own network and tend to be more innovative. Because technology [like e-logistics automation systems (Sakchutchawan et al.,2011)], market maturity and network support innovation expansion, more actors within the innovative system retain specialized knowledge (Laursen and Salter, 2006). Isaksson et al. (2010) highlighted the importance of making innovation visible through the use of process performance indicators. Logistics is a source that renders products or services technologically efficient and whose activities involve acquisition of data technology, information technology, storage technology and transport technology (Lin, 2008). Role of TPLs 77 Abramovici and Bancel-Charensol (2004) explained that the transformational impact on the whole management system of a company depends on how much the client is able to absorb new activities and follow directions. Efficiency and effectiveness are expected from the innovation management of TPLs through new and optimized systems, in addition to innovative equipment (Busse, 2010). Vasiliauskas and Jakubauskas (2007) pointed out the importance of an efficient logistics system from a social point of view, which offers possibilities for reducing road congestion and pollution, for example. Lin (2008) said that the survival of a company in the knowledge age depends on how it improves its innovative organizational capacity. According to the author, adopting new technologies can make it easier for TPLs to improve their skills and to take advantage of the knowledge to innovate in terms of products and services. Busse (2010) affirmed that innovation in TPLs is less frequent, because they use little research and development, and it seems to be costly owing to their specific context. Abramovici and Bancel-Charensol (2004) suggested that four elements are necessary for the adoption of innovation: customer value recognition, participation, training methods and external communication. Busse and Marcus Wallenburg (2011) and Soosay and Hyland (2004) added that the fight for innovation precedes its inputs. As per the latter authors, there are internal (shareholders and employees) and external (customers and competitors) factors that pull (customer demands and performance improvements) and push (employees, knowledge of competitors and aggressive positioning) innovation. Those four factors operate together because their impact depends on the organization’s environment and operation, according to Soosay and Hyland (2004). 3. Method The present study intends to deal with the interpretation of the reality of TPLs, avoiding numbers, according to Bauer and Gaskell’s(2010)definition of a qualitative investigation. Stake (2010) indicated that a qualitative research examines what is current, relying on human perception and understanding about how people or companies are doing their thing, guiding through professional practical issues in the search for improvement. This kind of research depends on many factors such as the data collected from interviews, the research tools and the theoretical assumptions that make significant changes aimed at a more comprehensive ideal. Considering the many variables involved, the little control over the events and how contemporary the phenomenon is, a case study was chosen as the research strategy for this work, wherein four TPLs were considered owing to their different approaches to logistics services, which characterizes it as a multiple case study (Yin, 2001) and a descriptive research (Köche, 1997). The criteria used to choose the cases were adopted from ILOS (Logistics and Supply Chain Institute, www.ilos.com.br), a specialized institute in Brazil dedicated to the generation of knowledge in this area. Each year, this institute gives an award to the best TPLs in Brazil based on a survey carried out, with around 300 logistics professionals from the largest industries in the country who indicate their favorite TPLs in a free form. The ten most-voted companies in 2014 formed that annual ranking, which was the one used in this search to define the four units of analysis. The accessibility to such companies owing to the author’s current professional position was also taken into consideration. Because one of the companies hesitated in disclosing its name, it was determined that none of the names of the companies was to be disclosed. Thus, the cases were called A, B, C and D. Regarding the research subjects, CEOs (chief executive officers), superintendent directors, commercial and operational managers –those responsible for the continuous improvement departments and international managers –were invited to the interviews. INMR 15,1 78 Because details in the data collected from Companies B and C were very similar, there was an opportunity to seek additional information to reinforce the sources of evidence in data collection and analysis as suggested by Yin (2001). The saturation criterion was applied, as recommended by Godoi and Mattos (2006), by inviting three subjects from a client of these two companies for interviews to validate their opinion about the innovative solutions indicated by Companies B and C. In total, 19 interviews were conducted via teleconference (majority) or in person. For data collection, it was considered that case studies usually have a wide range of sources and those are important to allow convergence and divergence in research when using triangulation of information as a tool (Yin, 2001). The data were collected through semi-structured, in-depth interviews and by the analysis of the companies’websites and brochures and other materials provided. The author also had the opportunity to test some mobile applications. The script of the interviews was elaborated on the basis of research objectives, theoretical background and proposed method. It was validated by the article advisor and an academic and professional jury, composed of two PhD professors and a vice president of operations in Latin America from a TPL provider, who criticized and helped improve the script at each validation stage, also checking if it really had the proper measurement capacity. The invitations for the national and international interviews were sent by e-mail (to the USA, Panama and Germany), along with a researching scheme to illustrate it. The script was developed considering the multiple variables that may be present connected to the research problem within its categorization. The interviews began in September 2015 and finished in November 2015. They were all recorded, as previously authorized by the interviewees, and notes from each answer were manually taken by the author to be reviewed during the content analysis stage. For data analysis and interpretation, content analysis was applied to the collected data, seeking to understand the use of the language, in addition to the analysis of documents (Vieira and Zouain, 2005), the environment variables such as regulatory and economic (Kolbe and Burnett, 1991) and establishment of relationships between these results with the ones in the literature. Content analysis is a personal interpretation based on the researcher’s perception of the data and also the context in which they are analyzed, according to Moraes (1999). The present work fits the category directed to the characteristics of the message, that is, to the question “To say what?”which focuses on describing the content from the data collection. It also uses content analysis because it provides empirical insights for new research evidence about the nature of the data, according to Kolbe and Burnett (1991). Throughout the content analysis in this research, three steps were followed, aligned with Bardin (2006) and as described by the authors Mozzato and Grzybovski (2011): pre-analysis, exploration and categorization of the material and interpretation of the data. In the data preanalysis step, brochures, presentations and website information were gathered and organized for the analysis. In the exploration and categorization step, it was favorable for the research to previously plan the analysis, with the careful preparation of the scripts based on theory, which facilitated the preparation of the case study report (Yin, 2001). Data categorization is shown in Table I. For the analysis and interpretation of the data (Moraes, 1999), a priori categories were defined and grouped according to content similarity based on the theoretical background. To facilitate the development of the structure of the analysis report, an interview scripts table was used to compile all the interviewees’answers (Yin, 2001), thus creating a complete database, filled according to the defined categories for each company and interviewee. Role of TPLs 79 Table I lists the categories of the content analysis used in this paper and the main authors that inspired them. In the data interpretation phase, the interview template was completed after listening to the recorded interviews for the second time, and the answers were transcribed after a third listening. A cross analysis was conducted, with the notes taken during the interviews for a first triangulation of the data collected through brochures, presentations and all the other materials, including website content analysis, to use all the available sources of evidence in the data triangulation phase, highlighting the critical analysis according to the interpretations done (Yin, 2001;Mozzato and Grzybovski, 2011). A general structure was developed (Yin, 2001) with the compilation of the data collected following the defined categories. The data analysis allowed the creation of an explanation for the analytical strategy (Yin, 2001), which constructed an explanation and did not conclude but developed ideas to analyze the data. Next, each case was completely analyzed according to the logic of replication for each company (Yin, 2001). For the each company analysis, points of convergence and divergence found in the data collection were used. After the singular case analysis, a comparative section was created using the same criteria, which was the focus of this work through grouping into content analysis categories, compiled when crossing the results of all the companies. Finally, the results were presented in the form of a conceptual map of Soosay and Hyland (2004), representing the factors that impact innovation in importation logistics. Table I. Content analysis categories Concept Main authors Content analysis categories Innovative logistics solution Busse (2010),Busse and Marcus Wallenburg (2011), Cui et al. (2010),Isaksson et al. (2010),Prest and Sopher (2014),Sakchutchawan et al. (2011), Schumpeter (1934),Su et al. (2014),Wagner and Sutter (2012) Innovative logistics solution definition and importance Logistics innovation Aykol et al. (2013),Busse (2010),Busse and Marcus Wallenburg (2011),Isaksson et al. (2010),Luo (2010), Prest and Sopher (2014),Sakchutchawan et al. (2011), Schumpeter (1934),Stock et al. (2010), Tsai et al. (2010), Wagner and Sutter (2012) International innovative logistics services examples Innovation investments and revenue Busse (2010),Busse and Marcus Wallenburg (2011), Isaksson et al. (2010),Prest and Sopher (2014), Sakchutchawan et al. (2011),Su et al. (2014),Wagner and Sutter (2012) Innovation investments and measurement Barriers to innovate Busse (2010),Busse and Marcus Wallenburg (2011), Cui et al. (2010),David and Stewart (2010),Isaksson et al. (2010),Prest and Sopher (2014),Sakchutchawan et al. (2011),Su et al. (2014),Wagner and Sutter (2012) Barriers to innovate Innovation pulling factors and performance indicators to its measurement Fitzsimons (2000),Hayes and Wheelwright (1984), Monroe et al. (2014) Problems that pull innovative logistics solutions and performance indicators Import barriers David and Stewart (2010) Factors that complicate innovative logistics solutions and how to mitigate them Factors that push innovation Su et al. (2014),Wagner and Sutter (2012) Contributing factors to innovative logistics solutions INMR 15,1 80 background, pro-activity, communication and personnel, that is, internal factors of the organization that can be directed toward the contribution of the TPLs in the generation of innovative logistics in Brazilian importations. It can be seen that even external factors such as logistical background, internal misalignment in importation and even regulatory issues can be handled by the TPLs under the same internal factors like communication, consulting in logistics, personnel, pro-activity and action with the regulatory bodies, thus, gathering the understanding of customers’ needs with the relationship factor according to Halld orsson and Skjøtt-Larsen (2004). Interviewee 2 of Company B mentioned that “when we have a better relationship it is easier to sell the idea that, what we are doing, is for the customer’sbenefit.”Considering that it pulls innovation, the TPLs could really act in the innovative international logistics solutions for importation. It was also acknowledged by the TPLs, as mentioned by Interviewee 1 of Company C, “it is a process in which we have to work on educating, showing the potential gains in many levels of the company in order to achieve success.” In addition to this factor, working internally, with the teams, developing a background in logistics as recommended by Prest and Sopher (2014) and Busse and Marcus Wallenburg (2011) and acting institutionally as suggested by Laursen and Salter (2006) are some examples of external factors on which the TPLs cannot directly act. Given this analytical role, when facing importation, TPLs are able to act primarily in innovative logistics solutions via information technology tools, the most common type of logistics innovation that emerged in the collection of data, and as suggested by Luo (2010), Wagner and Sutter (2012),Porter (1989),Prest and Sopher (2014),Freeman (2004) and Lin (2008). Examples of such solutions are online quote systems, transport mobile applications, ERPs and EDIs and integrated networking systems with other Web-based logistics services, such as cargo tracking. 5. Conclusions and final considerations The main goal of this study was to understand, from the perspective of Companies A, B, C and D, the role of TPLs in the development of innovative logistics solutions for importation in Brazil. To that end, positive and negative factors were raised in a convergent way, as well as others, found specifically in each case. Regarding the implications of the present study, no specific theoretical reference was found on the subject in terms of the importation process, but rather related to information technology, which has been presented. The first and second specific objectives were met, presenting the TPLs’cases and their understanding about innovation in importation through the different sources of data collected and a cross-case analysis. First, lack of clarity was observed in the concept of innovation in international logistics services. The term is often confused with process improvement, so depending on the case and the subject, the understandings are different. The third specific objective of this study was met by presenting the following factors that facilitate or hinder the development of innovative logistics solutions. In Brazil, the factors that hinder innovation are focus on cost, resistance to change by importers, bureaucracy and infrastructure. On the other hand, the factors that contribute to innovation are analytical work, communication, information, relationship, the real understanding of customers’needs, partnerships with other agents in the supply chain, teamwork and engagement. To meet the fourth specific objective of this study, Companies A, B, C and D suggested solutions for the development of innovation in international logistics, such as effective communication, joint analytical work, prototyping of solutions, development of a Role of TPLs 87 relationship with clients, real understanding of their demands, partnerships and internal/ external engagement. According to the data obtained, it is concluded that the study presented a fundamental role of TPLs in the development of innovative logistics solutions in importation, meeting the general objective proposed. This role is based on trust and relationship, internal and external to the organization. Some ways to achieve trust are critical action to understand the customer supply chain and their real needs, together with a thorough and constant internal work in communication, people development, background in logistics, institutional performance and pro-activity. It is suggested that TPLs increasingly approach clients prepared to study each context, taking advantage of the fact that their strategic position in the supply chain allows them to meet the needs of several customers, to propose innovative holistic solutions in importation. This study, instead of focusing on procedural issues, intended to focus on two important theoretical and practical drivers: innovation in the importation process and strengthening of intangible factors, suggesting a change of mind-set and a differentiated background in importation logistics is developed by TPLs. It is known that trading conditions and geographical proximity have an impact on importation, but they were not discussed here because of the subject delimitation of the present study. On the other hand, the subject innovation in importation logistics provides opportunities for future studies to further explore examples presented herein, because much of the current study addresses the supply chain as a whole, not a singular process such as importation. In addition, the same case study presented here, through convergent factors, can be replicated/validated in other companies and countries. Further studies can also focus on the extended value chain of the TPLs and customers with their intersections, to find where innovation in logistics takes place in the specificstages of the import process. Another suggestion is to develop studies on team competences and innovation in outsourcing of logistics services. 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(2016), “Are logistics outsourcing partners more integrated in a more volatile environment?”,International Journal of Production Economics, Vol. 171, pp. 211-220. Corresponding author Alessandra Vitorino Razzera can be contacted at: [email protected] For instructions on how to order reprints of this article, please visit our website: www.emeraldgrouppublishing.com/licensing/reprints.htm Or contact us for further details: [email protected] Role of TPLs 91