Digital capability, relationship quality, and the selection of logistics service providers: a PLS-SEM and ANN approach

This study investigates the determinants of third-party logistics service provider (LSP) selection in B2B outsourcing by integrating service performance, relational mechanisms, and digital capability into a unified framework. Using data from 350 Vietnamese manufacturing and trading firms (April–June 2025), the model tests how Service Cost Competitiveness (SCC), Company Reputation (CR), Delivery performance (DE), and Digital Capability (DC) influence Relationship Quality (RQ) and LSP Selection. Partial Least Squares Structural Equation Modeling (PLS-SEM) reveals that Relationship Quality strongly predicts LSP Selection and mediates the effects of all four service attributes, while Digital Capability and Company Reputation also exert direct effects. A complementary Artificial Neural Network (ANN) analysis demonstrates higher predictive accuracy (R2 = 60.0%) than PLS-SEM and identifies Relationship Quality and Digital Capability as the most influential predictors. The findings position LSP selection as a relational–technological decision process, emphasizing that firms prioritize digital integration and relationship quality over cost in outsourcing partnerships.