A configurational approach to last mile logistics practices and omni-channel firm characteristics for competitive advantage: a fuzzy-set qualitative comparative analysis

Abstract

PurposeThe purpose is to explore how the configurations resulting from the interplay of last mile logistics practices and firm characteristics are associated with firm performance in an omni-channel context.Design/methodology/approachDrawing on configuration theory (CT), the authors use fuzzy-set qualitative comparative analysis (fsQCA) to analyze data on 72 Swedish omni-channel retailers.FindingsFour configurations are identified—store-oriented small and medium-sized enterprises (SME's), online-oriented SME's, large store-oriented retailers and large online-oriented retailers. The results show that while offering a wide range of delivery options is necessary to achieve high performance, it is not sufficient, and that returns and fulfilment should be simultaneously considered. For instance, large high-performers leverage their stores and warehouses for fulfilment and returns in an integrated way irrespective of sales channel-mix. However, SME's appear to focus on fulfilment simplicity with less-costly delivery alternatives, where store-oriented SME's leverage stores and the online-oriented counterparts leverage warehouses. Consequently, the authors develop a configurational taxonomy and discuss a set of recipes which provide insights for researchers and practitioners.Research limitations/implicationsThe study provides a more comprehensive understanding of the pathways to success, and potential pitfalls, in the last mile logistics context.Originality/valueThis study applies a novel methodology in the field, namely fsQCA, to explore the paths to competitive advantage. It covers a wide range of stages in the LM including back-end fulfilment, delivery and returns. It also provides insight into the logistics practices of both SME's and large omni-channel retailers.