Narrowing the Gaps: Assessment of Logistics Firms’ Information Technology Flexibility for Sustainable Growth

Abstract

In a supply chain management context, the effective management of Information Technology (IT) flexibility has been an issue to be resolved. However, no analytical method that calculates the required and actual level of IT flexibility dimensions has been proposed. This paper aims to provide an analytical tool that measures the required and actual levels of IT flexibility dimensions to provide the best value from a logistics firm’s IT flexibility. To do so, we propose a combined Importance‒Performance Analysis (IPA) and Partial Least Squared Structured Equation Modelling (PLS-SEM) method based on a multidimensional IT flexibility model. By comparing industry-level data with client firm data, our method allows for effective identification of a client logistics company’s multiple IT flexibility gaps and indicates where particular management interventions are required. By proposing importance and performance as measurement scales, our research suggests an analytical tool that managers can utilize to assess IT flexibility and identify any gaps that exist between actual and required flexibility levels. This allows managers to effectively address areas that demand further attention. This approach also leads to an improved understanding of how organisations can extract the best value from their investment in IT flexibility to contribute to sustainable growth.