Abstract

Service diversification (SD) enhances firms’ operational performance. Although the literature shows information technology (IT) helps firms with their SD strategies, the effects of specific IT need further investigation. Moreover, the effects of the macro environment are overlooked. This study proposes a cross-level model, which is examined using data of 690 logistics firms across 23 Chinese cities. The results show that the four types of IT that are widely used in the logistics industry and the innovation environment are positively related to SD. However, the innovation environment negatively moderates the relationships between two of the four types of IT and SD.

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