Intra-organizational communication, understanding, and process diffusion in logistics service providers

Purpose: The purpose of this paper is to investigate, using survey data, how a firm may be able to leverage innovation or processes specifically developed for one customer across its entire customer network using on-site, or implanted, employees. Design/methodology/approach: Data collected from a survey of 309 implanted logistics service provider (LSP) representatives are analyzed using structural equation modeling. Findings: The findings show that intra-organizational task interdependence and face-to-face communication can lead to a greater understanding of firm processes developed for specific customers and greater diffusion of these new processes to other customers. Rather than separating customers that require implanted employees, these implants can be a conduit of valuable information and process enhancements that can positively impact a firm’s customer network. Originality/value: The current research shows how LSPs can effectively use their customer networks to provide process improvements for multiple customers. Specifically, transferring processes between customers can lead to efficiencies and contribute to supply chain robustness not possible without process diffusion.