Role of Logistics Integration Capability in Enhancing Performance in Omni-Channel Retailing: Supply Chain Integration as Mediator

Abstract

Although the importance and benefits of logistics integration in omni-channel (OC) retailing have been discussed in the literature, the impacts of logistics integration from the dimension of internal and external logistics remain unknown. To fill this gap, this study aims to investigate the relationships among internal and external logistics integration capabilities, supply-chain integration (SCI), and financial performance (FP) in OC retailing based on the dynamic capability view. An empirical study is conducted based on a survey of 230 OC retailers in China’s market. Factor analysis and regression analysis are conducted to examine the hypotheses of the proposed conceptual model. The quantitative analyses show that the internal logistics integration capability is significantly related to the external logistics integration capability, and they both have positive effects on SCI, while the external logistics integration capability generates a higher impact (i.e., almost 1.5 times that of the internal logistics integration capability). The numerical results also demonstrate that the logistics integration capabilities and SCI have similar positive effects on FP (i.e., all the relevant regression coefficients show values around 0.25), and SCI plays a partial intermediary role in the relationships between logistics integration capabilities and FP. Furthermore, the quantitative evidence addresses the fact that the FP is not influenced by OC retailers’ characteristics, indicating a fair business environment in the OC retail industry.