Internal and external logistics information technologies

Abstract

PurposeThis research seeks to investigate logistics information technology (LIT) from an international perspective. The initial focus determines the viability of categorizing LIT into two constructs – internal and external LIT. The second focus examines the relationships between internal and external LIT and customer‐related performance capabilities. The objective is to provide a mechanism for managers to use when they need to provide justification for LIT expenditures.Design/methodology/approachA review of the literature, along with survey data provided by international supply chain executives, was used to develop a research concept regarding LIT and its impact on customer‐related performance capabilities.FindingsThe results revealed that it is logical to separate LIT into two dimensions and that those individual dimensions do have an impact on specified performance capabilities. Therefore, managers wishing to target specific performance capabilities with LIT may do so even within an international setting.Research limitations/implicationsThe small sample size of 34 was not ideal and limits the possible generalizations from this study, but the results provide a basis for future research. Implications include support for the viability of two‐dimension LIT approach and the connection between LIT and performance capabilities that managers can use to justify LIT expenditures.Originality/valueThis paper answers the call for more internationally‐based supply chain research along with the need for justification regarding LIT investment.