Institute of Transportation, MOTC

　　This study empirically examines the relationships between logistics capabilities, competitive advantages, and operating performance of international distribution centers in Taiwan. Based on a factor analysis, four key logistics capabilities were identified, namely, customer response capability, innovation capability, economic scale capability, and flexible operation and logistics capability. A structural equation modeling (SEM) approach was employed in this research. The results indicate that logistics capability has a positive effect on operating performance and competitive advantage, and competitive advantage has a positive effect on operating performance. This study suggests international distribution centers develop core logistics capabilities to maintain their competitive advantages and improve operating performance.