INSIDE THE SHARED CONTAINER: THE ROLE OF EXTERNAL FACTORS AND INTERNAL RESOURCES AND CAPABILITIES IN FIRM ADOPTION OF LESS-THAN-CONTAINER LOAD FREIGHT IN INTERNATIONAL TRANSPORT

Abstract

This thesis explores the factors that influence international firms’ adoption of Less than Container Load (LCL) shipping solutions in global trade. While previous research has examined Mode of Transport (MOT) selection broadly, there is limited academic work focusing specifically on LCL. To address this gap, the study investigates how a set of seven predetermined external factors of cost, time, flexibility, reliability, product characteristics, risk management, and regulatory and environmental factors affect LCL adoption and further contributes to research by examining how firms’ internal resources and capabilities mediate the external effects. The analysis is based on interview data coded through thematic analysis. The findings show that while external factors shape LCL adoption, their impact is not uniform. Firms’ internal resources and capabilities, such as planning systems, financial flexibility, packaging routines, and relationship capital, play a decisive role in determining whether LCL is a viable and strategic option. By highlighting the interplay between external conditions and firm-specific resources, the study contributes to international business research by showing that LCL adoption reflects not only market demands but also firms’ capacity to manage logistical complexity and uncertainty.