who studied the linkages between logistical performance and perceived performance of 3PLs. These studies point to the need to develop a set of 3PL selection criteria and a set of performance evaluation criteria. The selection criteria are needed initially and the performance evaluation criteria are needed on an ongoing basis to monitor the performance of 3PLs. These studies also show that there is a positive relationship between the criteria used to select and evaluate 3PL performance, and firm performance. This suggests the following hypotheses:
H3. The extent of 3PL selection criteria are positively related to firm performance.