Logistics Information System Evaluation: Assessing External Technology Integration and Supporting Organizational Learning

Abstract

Firms often outsource the development and acquisition of logistics information systems (LIS) needed to improve logistics processes. Managers tasked with such outsourcing decisions often struggle to understand and balance the external technology's impact on existing logistics processes, individual stakeholders, firm strategies, and the financial and operational performance of the firm. Unfortunately, research is limited on (1) methods for evaluating the performance capabilities of systems from external sources prior to full implementation, and (2) the impact of external technology integration (ETI) on organizational behavior and learning related to a firm's logistics processes. Through the lens of organizational learning (OL) theory, this research uses a case study approach to examine the transportation division of a major U.S.‐based fuel retailer to gain insights on the management control of ETI efforts. The study builds theory to fill important literature gaps then develops a conceptual framework and supporting propositions to inform future research on logistics ETI. The findings highlight important OL implications for firms involved in ETI efforts and also provide a practically relevant management control tool that can be used by logistics practitioners.