Journal of Transportation Management


The research reported in this manuscript empirically compares the private warehouse investment strategies of small and large manufacturing firms. Mail surveys were administered to independent samples of small and large United States manufacturing firms. This research is based on a series of identically worded questions administered to both samples. Data was factor analyzed and cluster analyzed to identify three private warehouse investment strategies for small and large firms and two strategies for large firms. Analyses of three independent variables further evaluated differences in private warehouse investment strategies. Finally, the warehouse mix of small and of large firms was compared. This study identified specific private warehouse investment strategies, and warehouse mixes, in small and large United States manufacturing firms. Small firms were found to be less likely to use formal capital budgeting techniques and were less likely to consider strategic issues than large firms. Small firms were also found to be more likely to use private warehousing than large firms. This research increases the awareness of differences in logistics practice between small and large manufacturing firms and suggests that generalizations regarding logistics strategy should be approached with caution.