1. IntroductionThe importance of re

1. Introduction
The importance of relationship marketing is reflected in
the numerous advantages that have been attributed to it by
prominent scholars (e.g., Madhok & Tallman, 1998; Morgan
& Hunt, 1994). Inter-organisational relationships may also
be beneficial in the context of supply chain management
(SCM) that requires the integration of the business partners
in the supply chain. This importance has been recognised
and highlighted in distribution channel studies (e.g.,
Anderson & Weitz, 1992; Lusch & Brown, 1996) and
theoretically analysed in the context of supply chain
management and performance (Stank, Goldsby, & Vickery,
1999). Despite this importance, certain authors have highlighted
gaps in the literature, particularly in the empirical
examination of inter-organisational relationships in channels
and logistics (Frazier, 1999; Siguaw, Baker, & Simpson,
2003). Specifically, little attention has been paid to the
antecedents of relationship orientation and the potential
performance consequences of relational exchange in supply
chains (Prahinski & Benton, 2004).
This paper seeks to examine the effect of intra-organisational
learning in the orientation of a firm towards relationship
development. The terms ‘‘organisational learning’’ and
‘‘intra-organisational learning’’ are used interchangeably in
this paper. Organizational learning occurs within individual
organizations but it is a function of the interaction among
channel members (Lukas, Hult, & Ferrell, 1996). On this
basis organizational learning can be conceptualized as a
potential contributor to relationship development in the
interaction between logistics service providers (LSPs) and
their clients. Selnes and Sallis (2003) indicate that although
the literature on organizational learning is unclear as to the
consequences of intra-organizational learning capability,
the common theme is that organizational learning affects
the organization. Intra-organizational learning requires the
identification of information needs, the acquisition of
information externally and its internal dissemination (Day,
1994). Organizational learning has the ability to influence
behaviour (Huber, 1991) and will enhance the capacity of
understanding (Damanpour, 1991), cross-functional coordination
(Aiken & Hage, 1971), creativity and, problemsolving
(Senge, 1990a). On this basis this paper hypothesizes
that the need for communication, interaction and
information acquisition from clients in conjunction with the values instilled by intra-organisational learning (e.g.,
enhanced ability of understanding, cross-functional interaction,
creativity, problem solving abilities) will influence
behaviour and orientation towards the formation of
relationships at the inter-organisational level in the supply
chain context.
A number of scholars have acknowledged the importance
of examining organisational learning as an influence of
behaviour change and performance improvement (Hult,
Ferrell, & Hurley, 2002; Hult, Hurley, Giunipero, &
Nichols, 2000; Hult, Nichols, Giunipero & Hurley, 2000;
Slater & Narver, 1995). Despite the acknowledgement in the
marketing field that organisational learning is an important
strategy for competitive advantage (Baker & Sinkula, 1999;
Hult, Hurley et al., 2000; Hult, Nichols et al., 2000) few
studies have been devoted to the empirical testing of the
effects of organisational learning and certainly none in the
testing of organisational learning as an antecedent to
relationship orientation in supply chains.
The recent trend towards the outsourcing of the logistics
activities has given prominence to the concept of third
party logistics service providers (LSPs). An LSP is defined
as a provider of industrial logistics services that performs
the logistics functions on behalf of their clients (Coyle,
Bardi, & Langley, 1996). Despite the importance of LSPs,
particularly in terms of the potential impact of this
organisational adjustment to effectiveness and performance
in supply chains, there have been few studies analysing the
relationship between LSPs’ strategies and performance
(Lai, 2004).
In an attempt to address the aforementioned gaps in the
literature, the purpose of this research is to empirically
assess the role of organisational learning as an antecedent to
relational orientation in LSP–client relationships and the
potential influence on logistics service effectiveness and
firm performance. The paper also examines the effect of
logistics service effectiveness on performance in supply
chains. It is envisaged that attention to LSP–client relationships
and the resulting performance implications will have
significant practical and theoretical contributions.
In the next section, the theoretical framework underpinning
the conceptual inter-relationships is presented and
four testable hypotheses are proposed. The research methodology
is then presented, which includes sampling and
measurement before analysing the data collected from a
sample of Hong Kong based LSPs. Following this, a
discussion of the results and implications for theory, practice
and further research are highlighted.