Revealing the impact of operational logistics service quality on omni-channel capability

Abstract

Purpose This paper introduces the term “omni-channel capability” and tests its validity. The purpose of this paper is to investigate the impact of logistics service quality (LSQ) on omni-channel capability. Design/methodology/approach An online survey was used to evaluate the new concept of “omni-channel capability” and LSQ from the consumer’s perception. A two split sample technique was used to validate omni-channel capability and test the impact of LSQ on it through structural equation modeling. Factor analysis and structural equation modeling were performed to introduce, test and validate omni-channel capability, and test the study’s hypotheses. Consumers who had previously shopped from both the online and physical stores of a particular retailer completed a self-administered survey. Findings The findings supported the use of the term “omni-channel capability,” which has three elements: channel consistency, cross-channel and social media. The results also revealed the positive impact of operational LSQ on omni-channel capability. Practical implications Taking consumer perceptions as a reference point, this study reveals major issues that retailers should focus on while pursuing an omni-channel strategy. The findings also highlight the need for retailers to ensure operational LSQ to implement an omni-channel management strategy. Originality/value To improve on the limited theoretical understanding and empirical grounding of omni-channel management, this study described the three elements of omni-channel capability. The impact of operational LSQ on omni-channel capability gives empirical support for the theorized hierarchy of dynamic capabilities (zero- and first-order capabilities).