JOURNAL OF BUSINESS LOGISTICS, Vol 21. No. 2. 2000 and from value-added service capabilities via a cost leadership strategy (I e, mismatched capabilities and strategy) Data Collection A logistIcs environment was used to test the model because logistics has a great deal of promise as a future arena of strategy, and logistics capability scales exist Moreover, It is mentioned frequently as a functional area that may provide sustainable competitive advantage and supenor firm perfor Ice."UnlIke other functions, logistics activities have the potential to affect performance in terms of revenue enhancement as well as cost reduction Logistics expenses may represent as much as 20% I single industry allows for better control of extraneous vanables. Second, in general, grocery chains are either cost leaders or differentiators. Third. in the retail grocery business, logistIcs Is of paramount Importance due to the low margins, nventory turns, a nd perishable nature of products key informant survey research strategy was employed"T he sample was obtained trom The headquarters of grocery firms in the United States and Canada The intia/ S for the corporate Marketing Guidebook, "which contains CEOs and vice preside nts of logistics for the corporate whose primary business( more than 50% )Is In the retall grocery industry, as opposed to convenrence stores or warehouse stores Phone calls were made lo each grocery chain to establish contact with the appropriate informant Afollow-up call sought to generate interest and participation in the study. Ulti mately, of the 480 questionnaires were mailed, 102 were leturnetl, and 77 were usable. for an effec- The vast majority of key informants(97%)were at the senior management level Respondents had an average of 27 years in the grocery industry and on average teported 20 years with their resent company They also reported on average that they had been in their present position for 9 years Seventy-one percent possessed a college or graduate degree (learly. the key Informants repre sented upper management, and therefore should be quite involve d in strategIc planning Construct Measurement A panel of experts helped ascertain which distinctive logistics capabilities are most likely cost leadership onented and which are most likely differentiation oriented This method follows that employed by Dess and Davis"The capabilities constructs were based, In part, on the 32 logistics performance capabilty measures from the Michigan State University research. 10 Copyright 2001. All rights reserved