Title: Improving Cross-Border Logistics: The Role of Public-Private Partnerships
Abstract: Cross-border logistics involves complex operations carried out by private enterprise such as freight transportation, warehousing, border clearance, and payment systems. However, the efficiency of these activities depends on government services, investments, and policies that provide the logistics infrastructure for global trade (Arvis et al., 2012). Hence, effective public-private partnerships are critical to the quality of cross-border logistics (McLinden, 2011; Sands, 2009). Public-private partnerships (PPPs) are defined as cooperative ventures between public agencies and private enterprise in which both parties share the risks and rewards of delivering a service and/or facility for the benefit of the general public (Linder, 1999; NCPPP, 2012). Partnerships and partnering behavior have received significant attention in logistics research. This stream of research has produced a wealth of knowledge about partnerships between private sector business entities, but does not consider the nature or role of partnerships between actors in the private and public sectors. Given the interdependence of private enterprise and the public sector in supply chain logistics, the lack of research that examines PPPs represents a critical gap in the knowledge base of logistics management. The purpose of this study is to address the gap in logistics knowledge by developing a theoretical framework of public-private partnerships that facilitate cross-border logistics. The research relies on a grounded-theory analysis of primary data collected in a case study of cross-border logistics between the United States and Canada. PPPs related to cross-border logistics at two U.S/Canadian border crossings between Montana and Alberta were selected for this case study. The two crossings—Coutts/Sweetgrass and Wild Horse—are located approximately 100 miles apart on the eastern section of the Montana/Alberta border. These crossings were chosen because they are located on the multi-modal Ports-to-Plains transportation corridor that links U.S. and Canadian markets. In addition, these two border crossings are significantly different in their operations. Reports of seven PPPs were collected in interviews with 34 key informants, including 3 elected government officials, 12 economic development officers, 16 business owners, and 3 border crossing employees. Interview transcripts, researcher memos, photographs, and documents were loaded into a software tool that facilitates systematic coding and analysis of qualitative data (QSR International, 2011). The data were analyzed using a grounded theory approach. Findings reveal that the collaborative capability of private enterprise and the level of cooperation among public agencies contribute directly to the performance of public-private partnerships which, in turn, supports the quality of cross-border logistics. While the bulk of research on public-private partnerships begins with the public sector point-of-view, this study lays the groundwork for examinations of industry-led public-private partnerships. Industry leadership was reported as essential to the success of PPPs focused on improving cross-border logistics. Further, findings show that these PPPs were ultimately concerned with economic development. Indeed, the rationale for investments in the logistics infrastructure was almost exclusively stated in terms of contributions to sustainable local, state/provincial, and national economic growth. The propositions put forth in this study provide a foundation for a quantitative test of relationships among constructs in research designs that rely on surveys or econometric modeling of secondary data. Such research could test the robustness of the basic premise of this study, namely, that the performance of public-private partnerships is significantly related to the quality of cross-border logistics. In addition, further studies could measure the relative importance of private enterprise collaborative capability and public interagency cooperation to the performance of public-private partnerships.
Publication Year: 2014
Publication Date: 2014-10-13
Language: en
Type: book-chapter
Indexed In: ['crossref']
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Cited By Count: 2
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