In the contemporary global economy, logistics service quality (LSQ) has emerged as a cornerstone of competitive advantage and organizational excellence, particularly within the complex landscape of industrial markets. For developing nations like Iran, where industries operate under unique economic constraints and infrastructural challenges, the quality of logistics processes determines the survival and growth of firms. Traditional LSQ models, such as SERVQUAL or those focused purely on consumer retail, often fail to address the high-stakes, high-volume, and relationship-driven nature of industrial (B2B) markets. There is a significant research gap in understanding how logistics service components—ranging from warehouse efficiency to digital integration—interact to produce long-term business value. Therefore, this study was designed to bridge this gap by developing a comprehensive, context-sensitive framework that identifies the core dimensions of logistics service quality and analyzes the causal dynamics between them specifically within Iran’s industrial sector.

Methodology

This research adopted a multi-stage mixed-method design to ensure both depth and statistical rigor. In the qualitative phase, Grounded Theory (GT) was utilized to explore the phenomenon from the perspective of industry experts. Semi-structured interviews were conducted with 17 senior specialists and scholars in Tehran, selected through purposive and snowball sampling techniques. These participants provided deep insights into the practical challenges and strategic drivers of logistics in industrial marketing. The qualitative data were processed through a three-stage coding process: open coding (to identify initial concepts), axial coding (to categorize these concepts into themes), and selective coding (to build the final theoretical framework). In the subsequent quantitative phase, the Decision-Making Trial and Evaluation Laboratory (DEMATEL) technique was employed. This method allowed the research to move beyond simple correlation, quantifying the exact influence and dependency relationships between the 14 identified components. By calculating the “D” (influence) and “R” (dependency) values, the study could distinguish between “cause” variables that drive the system and “effect” variables that represent final outcomes.

Findings and Results

The integration of Grounded Theory and DEMATEL resulted in a robust five-dimensional model. First, Causal Conditions were identified as the foundational drivers, including the accurate recognition of customer needs, optimized distribution processes, and brand awareness. Second, Contextual Conditions highlighted the environmental facilitators, such as the maturity of Customer Relationship Management (CRM) systems and the adoption of modern logistics technologies (e.g., IoT and automated tracking). Third, Intervening Conditions emerged as critical mediators, specifically customer trust and organizational credibility, which determine the effectiveness of any logistics strategy. Fourth, the Strategic Dimension encompassed the operational actions taken by firms, such as ensuring high-quality service delivery, operational security, and cost-efficiency. Finally, the Consequences dimension detailed the long-term impacts, including increased sales volume, an expanded customer network, sustainable business development, and overall market efficiency.

The DEMATEL analysis provided empirical evidence for this structure. “Customer needs recognition” was found to be the most powerful causal driver with a D-R value of 3.894, indicating it is the primary engine of the LSQ system. “Providing high-quality services” followed with a D-R value of 2.769, acting as a secondary cause variable. Interestingly, variables like “CRM systems” and “Modern technologies” showed high levels of interaction with other components, reinforcing their roles as essential contextual supports. On the other hand, factors such as “business development” and “market efficiency” were clearly identified as effect variables, showing that they are the cumulative results of the preceding causal and strategic layers. The results emphasize that in Iran’s industrial markets, logistics is not merely a back-office function but a systemic strategic asset.

Discussion

The findings suggest that the path to logistics excellence in industrial markets is hierarchical. Without a deep understanding of customer needs (the primary cause), strategic investments in technology or infrastructure may not yield the desired competitive results. The study highlights that in the Iranian context, where trust is a vital component of business transactions, the “Intervening Conditions” of organizational credibility act as a filter through which all logistics strategies must pass. Managers must realize that achieving “Consequences” like sales growth and market expansion is only possible when the causal drivers (needs recognition and quality) are aligned with the right contextual tools (CRM and technology). This holistic view challenges the traditional focus on isolated metrics like “delivery speed” and instead advocates for a system-wide improvement of the logistics value chain.

Conclusion and Managerial Implications

This study concludes that a one-size-fits-all approach to logistics is insufficient for the nuances of industrial markets. The proposed model provides a strategic roadmap for managers to transition from purely operational logistics to a comprehensive Logistics Service Quality (LSQ) framework. From a managerial perspective, the priority should be placed on the “Cause” variables identified in the DEMATEL analysis. Specifically, firms should invest in market intelligence to better recognize industrial client needs and foster organizational trust to ensure their logistics strategies are well-received by the market. Furthermore, the integration of digital technologies and CRM is no longer optional but a necessary context for achieving high-level performance. Theoretically, this research contributes to the supply chain management literature by providing a validated, multi-dimensional LSQ model tailored for industrial markets in developing economies. The framework serves as a diagnostic tool for organizations to identify bottlenecks in their logistics processes and implement targeted improvements to drive long-term profitability and market leadership.

Keywords: Logistics Service Quality, Industrial Markets, Grounded Theory, DEMATEL, Supply Chain Management, Business Performance, Iran Industrial Sector