The Role of Public–Private Partnerships in Facilitating Cross‐Border Logistics: A Case Study at the U.S./Canadian Border

• DOI: http://doi.org/10.1111/jbl.12032
• Published date: 01 December 2013
• Date: 01 December 2013

The Role of Public–Private Partnerships in Facilitating

Cross-Border Logistics: A Case Study at the U.S./Canadian

Border

Donna F. Davis

1

and Wesley Friske

2

1

University of South Florida

2

Texas Tech University

Private enterprise carries out the complex operations of cross-border logistics that are the lifeblood of global supply chains. Yet, the effi-

ciency of these activities depends on government agencies that provide the logistics infrastructure for global trade. Thus, public–private

partnerships (PPPs) play an important role in facilitating improvements in cross-border logistics. While private enterprise and the public sector

are key stakeholders in the quality of cross-border logistics, research that examines PPPs in logistics management is relatively sparse. To

address this gap, the current study aims to develop empirically based theoretical insights into the nature and role of PPPs in the context of

cross-border logistics. The study employs a grounded-theory analysis of case study data collected at the U.S./Canadian border. Findings show

that private enterprise collaborative capability and public interagency cooperation determine the performance of PPPs which, in turn, influence

the quality of cross-border logistics.

Keywords: cross-border logistics; collaborative capability; interagency coordination; public–private partnerships; trade facilitation

INTRODUCTION

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 partner-

ships (PPPs) are indispensable to the quality of cross-border

logistics (Sands 2009; McLinden 2011). PPPs are defined as

cooperative ventures between public agencies and private enter-

prise in which both parties share the risks and rewards of deliv-

ering a service and/or facility for the benefit of the general

public (Linder 1999; Bloomfield 2006; NCPPP 2012).

Partnerships and partnering behavior have received significant

attention in logistics research. Prior studies examine the charac-

teristics of supply chain partnerships (e.g., Lambert et al. 2004;

Golicic and Mentzer 2006; Leuschner et al. 2013; Nyaga et al.

2013), strategic partnerships and alliances (e.g., Ellram 1992;

Gentry 1996; Wieland and Wallenburg 2013; Zybell 2013), and

the influence of supply chain partnerships on logistics perfor-

mance (e.g., Stank et al. 2003; Daugherty et al. 2009; Zacharia

et al. 2009; Germain et al. 2011; Nyaga and Whipple 2011).

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 across 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.

Successful PPPs are particularly important to North American

logistics networks. U.S./Canadian commerce is a deeply inte-

grated system of supply chains that requires an efficient and

secure physical transportation infrastructure and a coherent sys-

tem of regulations that expedite cross-border logistics between

the United States and Canada. This trade region is unique in that

the goods that flow across borders are primarily parts and com-

ponents that supply complex, cross-border production systems,

rather than finished goods for consumer markets. The key to

understanding the importance of cross-border logistics in this

region is recognizing that we build things together, rather than

sell goods to each other (Blank 2008). For example, parts and

work-in-process inventory from U.S. manufacturers cross the

U.S./Canadian border seven times, on average, during the assem-

bly of an automobile (Sands 2009). In the energy industry, heavy

equipment manufactured in Mexico traverses the United States to

the Alberta oil sands, where oil is extracted and returned by

pipeline, rail, and truck to U.S. refineries for export to world

markets.

While this high level of economic integration provides a

strong foundation for international trade, it also introduces a fun-

damental vulnerability to supply chain logistics: Performance

depends on efficient, consistent operations at country borders

(Arvis et al. 2012). Speed and reliability are vital to these inter-

national production networks. Delays and uncertainty at the bor-

der have the potential to disrupt complex supply chains that

impact not only the economic prosperity of hundreds of commu-

nities in North America, but also the economic growth of the

region (Blank 2008; Sands 2009).

The purpose of this study is to address the gap in logistics

knowledge by investigating PPPs in the context of cross-border

logistics. Specifically, what is the nature and role of PPPs that

facilitate logistics at national borders? The research relies on a

Corresponding author:

Donna F. Davis, Center for Supply Chain Management & Sustain-

ability, University of South Florida, 4202 East Fowler Avenue,

Tampa, FL 33620, USA; E-mail: donnadavis@usf.edu

Journal of Business Logistics, 2013, 34(4): 347–359

© Council of Supply Chain Management Professionals