Toward creating competitive advantage with logistics information technology

Abstract

PurposeSuccessfully implementing and exploiting the right information technologies is critical to maintaining competitiveness in today's supply chain. However, simply adopting off‐the‐shelf technologies may not necessarily induce this competitiveness unless the organization combines these technologies with additional complimentary resources. This study draws on the logistics innovation literature, resource‐advantage theory, and the resource‐based view of the firm with the purpose of investigating performance outcomes of logistics information technology (LIT) adoption and the proposed moderating effect of a complimentary resource. The paper posits that combining LIT with positive buyer‐supplier relationships may set the stage for organizations to achieve competitive advantage.Design/methodology/approachA meta‐analysis of 48 studies that report outcomes of EDI or RFID adoption was performed. Regression was used to investigate the moderating effect of the buyer‐supplier relationship on the relationship between LIT adoption and performance outcomes.FindingsThe findings suggest that adoption of LIT promotes enhanced levels of effectiveness, efficiency, and resiliency for the adopting firm and that the quality of the buyer‐supplier relationship moderates the degree of efficiency and resiliency realized via adoption.Research limitations/implicationsThe results of this study suggest that adoption of a logistics innovation by itself may not necessarily produce a sustained competitive advantage. Instead, when combined with complimentary firm resources, the innovation may yield a sustained competitive advantage for the adopting firm.Originality/valueLogistics innovation needs greater theoretical development in the literature. This research extends a foundational logistics innovation model by incorporating relevant theory to propose and test an additional dimension of the model.