It has been suggested that it is not asset specificity alone
which is the explanatory factor behind variances in the
contracting out of the physical distribution function.
Whether or not to use a third party physical distributor
also depends on the ease of performance measurement.
The discussion has generated two propositions: first, that
asset specificity and a poorly measurable performance
favours an own-account physical distribution organization;
and, second, that the nature of a contractual relationship
varies with the level of asset specificity and the
measurability of the performance. These hypotheses are
currently being tested empirically in a study being
undertaken in The Netherlands.