The Role of Logistics Industry Orchestration in Mediating Service Quality, Brand Image and Price, Over The Service Ecosystem

Abstract

A powerful wave of change has swept across the global business landscape over the past seven to eight years. Three fundamental disruptions—digitalization permeating every aspect of life, the dominance of the millennial generation with its unique preferences, and the pandemic that drastically altered the socio-economic order—have significantly reshaped consumer behavior. These conditions have forced the freight forwarding industry in Indonesia to undergo radical transformation: from merely providing product-based services to building an integrated service ecosystem. This crucial transformation aims to optimize overall business performance and enhance the quality of national cargo services. his study delves deeply into how Service Quality, Brand Image, and Price converge to build a robust service ecosystem among Indonesian freight forwarding companies. The goal is to orchestrate various stakeholders within the complex logistics ecosystem. Adopting a quantitative approach, the study develops a model consisting of five construct variables and 50 indicators, all of which have been rigorously tested for validity and reliability. Data was collected using a Likert scale (1–5) questionnaire survey involving company leaders from freight forwarding firms, including members of logistics associations. Using a combination of area proportional random sampling and stratified proportional random sampling, data was successfully collected from 300 respondents. The data analysis was conducted using the Structural Equation Modeling (SEM) method with the SmartPLS software. The results reveal the central role of price in influencing logistics industry orchestration and the formation of a service ecosystem. Competitive and strategically set pricing proves to be a critical catalyst in facilitating effective interactions among companies within the logistics network. Statistically, the dominant factor in this study is the price variable, which has a significant influence on logistics industry orchestration (coefficient 0.534) and the service ecosystem variable (coefficient 0.490). The findings indicate that efficient pricing strategies aligned with the value offered have great potential to enhance coordination, collaboration, and better management among various actors in the logistics industry. Moreover, superior service quality and a strong brand image also play vital roles in improving the effectiveness of orchestration and strengthening the foundation of the service ecosystem. Overall, the study concludes that all 10 proposed hypotheses are significant, affirming the crucial role of integrated logistics industry orchestration in driving operational efficiency and improving company competitiveness. Therefore, the study recommends that freight forwarding companies in Indonesia design smart and adaptive pricing policies, leverage technological advancements and digitalization to optimize operations and cost efficiency, and strengthen strategic partnerships among stakeholders. These steps are essential for realizing a more efficient, sustainable, and competitive logistics ecosystem. The study underscores that effective pricing management is not merely a cost element but a strategic key to enhancing competitiveness and significantly contributing to the creation of a superior and efficient logistics ecosystem.