Logistics service governance in the digital economy: The dynamics of price war strategies in a developing country

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Abstract

In the context of the burgeoning digital economy, logistics service providers find themselves at a pivotal crossroads, particularly within developing countries where the market dynamics are rapidly evolving (Chin et al., 2023; Richey et al., 2023). This study delves into the price war phenomenon within the parcel service industry of Thailand and scrutinizes the implications of this competitive strategy. Using a quantitative research approach, this study collected data through an online questionnaire from a convenience sample of 405 participants in Thailand. The data underwent extensive analysis, employing both descriptive statistics to outline basic characteristics and multivariate analysis of variance (MANOVA). The study’s results highlighted the considerable influence of multiple factors — gender, age, education, socioeconomic status, income, residential location, logistics capabilities, and access to information — on the formulation and implementation of price war strategies within the market. These insights have the potential to provide valuable guidance to business proprietors, policymakers, and a spectrum of stakeholders. By implementing the recommendations and lessons gleaned from this research, these stakeholders can collectively contribute to the growth of a vibrant and efficient parcel delivery ecosystem, subsequently enhancing overall business competitiveness and elevating service quality for consumers in the continually evolving global marketplace.

Keywords: Price Wars, Parcel Service Providers, Competitive Strategy, Developing Country

Authors’ individual contribution: Conceptualization — K.S., A.R., and W.S.; Methodology — K.S., A.R., and W.S.; Software — K.S., A.R., and W.S.; Investigation — K.S., A.R., and W.S.; Resources — K.S., A.R., and W.S.; Writing — Original Draft — K.S., A.R., and W.S.; Writing — Review & Editing — K.S., A.R., and W.S.; Visualization — K.S., A.R., and W.S.; Supervision — K.S., A.R., W.S., and P.P.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D22, L81, O14

Received: 03.02.2024
Accepted: 29.10.2024
Published online: 01.11.2024

How to cite this paper: Saelee, K., Rafiyya, A., Singharat, W., & Phutthinatwan, P. (2024). Logistics service governance in the digital economy: The dynamics of price war strategies in a developing country. Journal of Governance & Regulation, 13(4), 178–185. https://doi.org/10.22495/jgrv13i4art17