Impact of BPO outsourcing on competitiveness in logistics: a structural equation modeling approach in the croatian contextŠarić, Marko (Avtor) Sternad, Marjan (Avtor) business process outsourcing (BPO)logistics companiesstructural equation modeling (SEM)strategic partnershipsemerging marketscompetitivenessPurpose & Research Gap: While Business Process Outsourcing (BPO) is widely studied, there is a lack of empirical research analyzing its specific impact on competitiveness within the logistics sector of emerging markets. This study addresses the gap regarding how BPO transitions from a cost-saving tool to a strategic expertise-driven model. Methodology: Data were collected from 132 logistics companies in Croatia. Structural Equation Modeling (SEM) wasapplied to test the hypotheses and mediation effects, as it allows for a robust analysis of complex causal relationships between latent constructs. Key Findings: SEM results reveal that BPO engagement alone does not guarantee competitiveness. The primary finding indicates that the expertise of BPO providers and strategic partnerships exert a significantly stronger positive effect on operational efficiency and market differentiation than simple cost reduction. Contribution: The paper contributes to the literature by redefining BPO as a strategic driver of innovation rather than a mere cost-cutting measure, providing logistics managers with evidence-based insights for knowledge-oriented outsourcing.20262026-04-21 15:21:28Članek v reviji97872sl