China’s and terrorism since 9/11. Therefore, the results of

China’s “ONE
BELT ONE ROAD”  project will encourage
investments in transportation, trade, energy and mining, eventually resulting
in strengthened regional cooperation, improved economic growth, trade
diversification and political flexibility (Peter Ferdinand, 2015). china will
invest $46 billion in China-Pakistan economic corridor and the completion of
this mega project will pull foreign investment and hence promote logistics,
energy, and resources, information & capital flow exchange between two
countries (Dong et al. 2016).  The
project will link Chinese city Kashgar and Pakistani sea port Gawadar through
railways, highways and pipelines, thus, facilitating trade along overland route.
However, security issues and political instability in Pakistan pose real
threats to the project implementation (S. Markey et al. 2016). These
catastrophic risks also impact logistics performance of the entities and hence
results in economic losses (M. Wagner et al. 2008). Moreover, logistics
performance is characterized by logistics efficiency, effectiveness and
differentiation (S. Fugate et al. 2010). Government support and environmental uncertainties
would force commercial entities to differentiate their logistic services and
offer innovative solutions (Chieh-Yu Lin, 2007).

Pakistani
civil and military leadership have shown serious concerns towards the success
of CPEC project and tender full support because the project is linked to
economic, political and security opportunities (S. Markey et al. 2016). Past
studies have explored into the role of external factors to logistics innovation
(Chieh-Yu Lin, 2007), relationship of logistics innovation with logistics
performance (S. Fugate et al. 2010) and examination of logistics performance
along with several risk dimensions (M. Wagner et al. 2008). However, the
current study will investigate into impacts of Govt. support and
environmental uncertainties on logistics innovation and eventually on logistics
performance of 3PL logistics companies. The study will also shed light as if
terrorism and political instability can affect the logistics performance of
these companies.  

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“ONE BELT ONE ROAD” Project of china is aimed at
linking several countries across Asia, Africa, Europe and Middle-East (A.
Ashfaq et al. 2015, S. Markey et al. 2016). All the countries globally are
facing critical issues linked to political instability and terrorism since
9/11. Therefore, the results of the study will have wider significance for the
managers not only in Pakistan but also across the world. If the proposed model
stands true, 3PL companies should seek greater support from civil-military
leadership for better logistics performance. The research will also add new
dimension to the existing theory by confirming the impact of terrorism and
political instability on logistics performance of 3PL companies operating in
similar scenarios