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Introduction
The emergence of logistics clusters as an important research topic is highlighted by the increasing number of recent publications in this area (Chhetri et al., 2014; Bolumole et al., 2015; Zhou et al., 2015; Qi and Liu, 2015). This is corroborated by industry evidence as governments are devoting significant resources to the creation and growth of various logistics clusters (Rivera et al., 2014). Logistics clusters can be described as nodes on the intricate web of international trade routes and supply chain networks (Sheffi, 2012). As Sheffi (2010, 2013) indicates, logistics clusters include three types of companies: firms that offer logistics services such as transportation carriers and third party logistics services providers (3PLs), the logistics division of industrial and retail firms, and industrial firms for whom logistics operations represent an important part of their cost.
Although there is a notable industrial clusters literature, the research on logistics clusters is still in its infancy. The current literature offers insights into issues such as the process for identifying logistics clusters (Rivera et al., 2014), the different types of logistics clusters (Mangan et al., 2008; Qi and Liu, 2015), and the typical logistics functions performed within clusters (Chhetri et al., 2014). However, the logistics clusters research offers little understanding of the benefits associated with the existence of logistics clusters as an industry. The main objective of this paper is to shed additional light on the benefits associated with this industry. Specifically, we seek to answer the following research question:
RQ1. What are the benefits of logistics clustering?
Addressing this important question extends the currently scarce body of literature and helps promote the development of logistics clusters. We directly address the call by Rivera et al. (2014) for additional research to better explain the benefits associated with logistics clustering. Several managerial implications are put forth as well.
Because of the limited knowledge about the benefits of logistics clustering a main objective of this paper is theory building. We employ a grounded theory approach to investigate the research question of interest (Glaser and Strauss, 1967; Strauss and Corbin, 1990). The data for this research are drawn from interviews conducted globally over a period of 27 months.
The remainder of this paper is structured...