Logistics service quality and customer loyalty among SME manufacturing industry in East Coast of Malaysia.

Nowadays, logistics research focuses on the ability of logistics to deliver good-quality service. This is important in creating a high value of customer loyalty. This can be observed through Third Party Logistics (TPL) delivery context. The unpredictable condition of economic continues to affect global business markets for 3PL services. A number of authors have recognized that logistics service quality is becoming an important tool in delivering superior logistics service performance and creating customer loyalty. However, empirical research has found that researches investigating the effects of the relationships among logistics service quality and customer loyalty have received relatively little attention in SME manufacturing industry especially in east coast, Malaysia. This study attempts to fill this void by investigating customers’ loyalty to TPL providers’ service across industrial sectors in Malaysia and the relationship quality. Specifically, this study were measures the relationship of logistics service quality on customer loyalty. This study shows that all the variables have significant relationship with customer loyalty. This study employed a data set drawn from 150 companies in SME manufacturing industry particularly from Kelantan and Terengganu. The data gathered from the survey were analysed using SmartPLS software. The findings of this research show significant relationship between logistics service quality and customer loyalty. The research contributes to the logistics perspectives in order to demonstrate the positive link between logistics service quality and customer loyalty as well as to the SME manufacturing industry. Other than that, further studies could be further extended by examining and adding more components that relate to a variation of service quality from various sectors.