Why do clients switch? An empirical study on third-party logistics service providers’ loyalty in Vietnam

Abstract

The logistics industry significantly contributes to global supply chain and e-commerce growth. This study investigates the overall service quality (OSQ), leading to customer satisfaction (CS) and switching intention (SW) within Vietnam’s logistics industry. Additionally, it examines the role of digital transformation (DT) as a moderating factor in the relationship between OSQ and CS. Employing partial least square structural equation modelling (PLS-SEM), we analysed factors impacting overall logistics service quality, satisfaction, and loyalty among 229 companies within Vietnam’s economy. Our findings suggest that reliability, responsiveness, empathy, and order discrepancy handling positively influence OSQ. Customers with higher satisfaction and perceived service quality are less likely to switch logistics service providers. Contrarily, DT does not significantly moderate the relationship between OSQ and CS within the surveyed data. Therefore, logistics service providers should enhance aspects such as reliability and responsiveness to improve service quality. This study contributes to understanding the links among OSQ, CS (moderated by DT), and SW in the Vietnam logistics industry, providing practical implications for operational excellence.