Preview

Projct

Powerful Essays
Open Document
Open Document
10763 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Projct
3/21/2014

Impact of information technology on the performance of logistics industry: the case of Hong Kong and Pearl Delta region : Journal of the Operational Rese…

palgrave-journals.com
Advance Online Publication

Publications A-Z index

Login

Register

Article

JOURNAL OF THE OPERATIONAL RESEARCH SOCIETY | GENERAL PAPER

Impact of information technology on the performance of logistics industry: the case of Hong Kong and Pearl Delta region
King Lun Choy, Angappa Gunasekaran, Hoi Yan Lam, Ka Ho Chow, Yick Chi Tsim, Tsz Wing Ng, Ying Kei Tse & Xiao
Ang Lu
Journal of the Operational Research Society (2013)

doi:10.1057/jors.2013.121

Received 25 January 2012 Accepted 28 August 2013 Published online 23 October 2013

Abstract
Over the last decade, a number of research studies have advocated the use of information technology (IT) in different aspects of logistics and distribution operations. This study examines the current state of the use of IT and its impact on logistics service performance through a survey of 210 logistics companies in Hong Kong and the Pearl River Delta region. A hypothetical model is also proposed in which the theories of the market-based view and the resource-based view are applied to link up the implications of IT capabilities with logistic performance. The model was tested using structural equation modelling. The findings suggested that
(i) IT implementation directly enhances the service quality of the logistics companies; (ii) the impact of IT implementation improves service quality thereby creating competitiveness.
Keywords: logistics; service quality; information technology; Hong Kong and Pearl River Delta Region

1. Introduction
As the world is becoming increasingly interconnected and interdependent, the logistics industry continues to look for strategic elements and information technology (IT) solutions to bridge three flows (physical goods, cash and information), streamline the
Supply Chain and



References: Acur N and Bititci U (2004). A balanced approach to strategy process. International Journal of Operations and Production Management 24(3/4): 388–408. Aktas E, Agaran B, Ulengin F and Onsel S (2011). The use of outsourcing logistics activities: The case of Turkey. Alt R, Fleisch E and Österle H (2000). Electronic commerce and supply chain management at ETA fabriques d’Ebauches. Avolio BJ, Yammarino FJ and Bassm BM (1991). Identifying common methods variance with data collected from a single source: An unresolved sticky issue Bagozzi RP, Yi Y and Phillips LW (1991). Assessing construct validity in organizational research. Administrative Science Quarterly 36(3): 421–459. Baraldi E and Nadin G (2006). The challenges in digitalising business relationships. The construction of an IT infrastructure for a textile-related business network Bardaki C, Kourouthanassis P and Pramatari K (2011). Modeling the information completeness of object tracking systems. Barlas Y and Gunduz B (2011). Demand forecasting and sharing strategies to reduce fluctuations and the bullwhip effect in supply chains Baron RM and Kenny DA (1986). The moderator-mediator variable distinction in social psychological research— Conceptual, strategic, and statistical considerations Bharadwaj A (2000). A resource-based perspective on information technology capability and firm performance: An empirical investigation Bobillo AM, Ló pez-Iturriaga F and Tejerina-Gaite F (2010). Firm performance and international diversification: The internal and external competitive advantages Bourne M, Mills J, Wilcox M, Neely A and Platts K (2000). Designing, implementing and updating performance measurement systems Bouwman AF, Van Drecht G and Van der Hoek KW (2005). Surface nitrogen balances and reactive N loss to the environment from global intensive agricultural production systems for the period 1970–2030 Byrd TA and Davidson NW (2003). Examining possible antecedents of IT impact on the supply chain and its effect on firm performance Chang SC and Lee MS (2007). The effects of organizational culture and knowledge management mechanisms on organizational innovation: An empirical study in Taiwan Chang SJ, Van Witteloostuijin A and Eden L (2010). From the editors: Common method variance in international business research Closs DJ and Savitskie K (2003). Internal and external logistics information technology integration. The International Journal of Logistics Management 14(10): 63–76. Craighead CW, Ketchen DJ, Dunn Jr KS and Hult GTM (2011). Addressing common method variance: Guidelines for survey research on information technology, operations, and supply chain management Dyson LE and Koruth S (2004). Improving business performance through supply chain intelligence: An Australian perspective Elbashir MZ, Collier AP and Davern MJ (2008). Measuring the effects of business intelligence systems: The relationship between business process and organizational performance Gangadharan GR and Swamy NS (2004). Business intelligence systems: Design and implementation strategies. Golicic SL, Davis DF, McCarthy TM and Mentzer JT (2002). The impact of e-commerce on supply chain relationships. Gu J, Goetschalckx M and McGinnis LF (2010). Solving the forward-reserve allocation problem in warehouse order picking systems Hair JF, Anderson RE, Tatham RL and Black WC (1995). Multivariate Data Analysis with Readings. Prentice-Hall: Englewood Cliffs, NJ. Hannula M and Pirttimaki V (2003). Business intelligence empirical study on the top 50 Finnish companies. American Academy of Business 2(2): 593–599. Helfat CE and Peteraf MA (2003). The dynamic resource-based view: Capability lifecycles. Strategic Management Journal 24(10): 997–1010. Herschel RT and Jones NE (2005). Knowledge management and business intelligence: The importance of integration. Hofenk D, Schipper R, Semeijn J and Gelderman C (2011). The influence of contractual and relational factors on the effectiveness of third party logistics relationships Holter AR, Grant DB, Ritchie J and Shaw N (2008). A framework for purchasing transport services in small and medium size enterprises Hong KK and Kim YG (2002). The critical success factors for ERP implementation: An organization fit perspective. Howell DC (2009). Statistical Methods for Psychology. 7th edn. Cengage Learning: Belmont, CA. Hoyle RH (ed) (1995). Structural equation modeling approach: Basic concepts and fundamental issues. In: Structural Equation Modeling: Concepts, Issues and Applications Hsiao HI, Kemp RGM, Vorst JGAJ and Omta SWF (2010). A classification of logistic outsourcing levels and their impact on service performance: Evidence from the food processing industry Iyer KN, Germain R and Frankwick GL (2004). Supply chain B2B e-commerce and time-based delivery performance. Janoff B (2000). Click and stick. Progressive Grocer 79(2): 61–64. Jensen HS, Poulfelt F and Kraus S (2010). Managerial routines in professional service firms: Transforming knowledge into competitive advantages Kalakota R and Robinson M (2000). e-Business. Addison-Wesley: Reading, MA. Kent JT and Mentzer JT (2003). The effect of investment in interorganizational information technology in a retail supply chain Kim SW (2009). An investigation on the direct and indirect effect of supply chain integration on firm performance. Kilgore SS, Orlov LM and Nakashima T (2002). Grading apps for inventory and order visibility, Forrester Research,

You May Also Find These Documents Helpful

  • Better Essays

    Acc 557

    • 2303 Words
    • 10 Pages

    Johnson, E., Whang, S., (2002) “E-Business and Supply Chain Management: an Overview and Framework”, International Journal of Physical Distribution and Logistics Management, 11(4): 413-422, Retrieved on 13th February, 2013…

    • 2303 Words
    • 10 Pages
    Better Essays
  • Good Essays

    Week 1 Case

    • 637 Words
    • 3 Pages

    This week we will study organizational and managerial issues in logistics, factors that play a role in organization’s logistics effectiveness and efficiency, and the ways to enhance effectiveness and efficiency. We will look at organizing logistics within the firm, focusing on organizational structure.…

    • 637 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Organizational Behaviour

    • 3267 Words
    • 10 Pages

    Thanks to consistent growth of economy and multidomestic exchange, the logistics industry has been witnessing buoyant growth and will continue this growth momentum in years to come (Rajaram, 2011). The demand for logistics services in China has been largely fueled by consistent growth of economy, and key industries such as automotive, engineering, pharmaceuticals and food processing. Similarly, individuals’ demand for logistics service has been also dramatically increased because of the convenience provided by modern technology such as online shopping. As a result, express companies were founded and promptly expanded to fulfill the customers’ demands for a rapid, efficient and secure shipping service. In China, there are currently more than 1,000 registered express companies operating and offering logistics services to either individuals or organizations. However, it is true that various problems are existing within those companies, which lead to significantly negative impacts on organizational effectiveness and relationship with clients. This report will focus on one representative express company in China, which is called Shentong Express and investigate the company’s problems and underlying causes behind them. This report will also recommend solutions that address the symptoms and causes to improve the organization’s performance and productivity.…

    • 3267 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    The factors that affect the performance of the logistics network are not static, i.e., they change over time. These factors include demand, product design, various costs in the logistics network, regulations, contracts, etc. The effects of these dynamics need to be evaluated periodically in order to determine whether the existing configuration is still satisfactory given the new operating environment.…

    • 2027 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    KIT710 elogistics L 1 1

    • 573 Words
    • 7 Pages

    Warehousing Procurement 2 Unit Coordinator • Dr Luke Mirowski – Email: Luke.Mirowski@utas.edu.au – Tel: 6226 2910 – Office: Centenary Room 364 • Consultation hours – Wednesday 2PM – 4PM – Friday 2PM – 4PM 3 Introduction • “The unit explores contemporary logistics and eLogistics for organisations from Informational, Communication and Technological (ICT) perspectives on logistical and supply chain issues. • “…Specifically, the unit develops elementary conceptual and applied knowledge across the logistics field, by examining ICTs concepts at the strategic, tactical and operational layers …” 4 Unit Outline • KIT710 eLogistics – Unit weight 12.5% of one academic year 5 Learning Objectives…

    • 573 Words
    • 7 Pages
    Satisfactory Essays
  • Best Essays

    Rodrigues, A.M., Stank, T.P. and Lynch, D. F. (2004) Linking Strategy, Structure, Process, And Performance In Integrated Logistics. Journal of Business Logistics. 25 (2), p. 65-94.…

    • 1644 Words
    • 7 Pages
    Best Essays
  • Better Essays

    1. This is the second in a series of short, expository articles on supply chain management. These have been incorporated as sections in an article—forthcoming in the Encyclopedia of Information Systems—on supply chain management and information technology prepared by Professors Mo Adam Mahmood, Leopoldo A. Gemoets, and Adriano O. Solis, all of the Department of Information and Decision Sciences, The University of Texas at El Paso.…

    • 1680 Words
    • 7 Pages
    Better Essays
  • Satisfactory Essays

    An introduction to the concept of logistics and its role in the overall supply chain. Logistics as the management of bi-directional flow of goods, services and information between point of origin and point of consumption. Overview of some typical logistics activities and related information management: transportation, inventory management, supply management, warehouse management, material handling, order processing and customer service. Also looks at impact of globalization and information technology advancements. Includes ethics and…

    • 2312 Words
    • 10 Pages
    Satisfactory Essays
  • Powerful Essays

    Zach G. Zacharia, Nancy W. Nix, Robert F. Lusch. “An Analysis Supply Chain Collaborations and Their Effect on Performance Outcomes “ JOURNAL OF BUSINESS LOGISTICS Vol. 30, No. 2, 2009 : 101-116…

    • 6952 Words
    • 28 Pages
    Powerful Essays
  • Powerful Essays

    Sohail, M.S. and Sohal, A.S. (2003). “The use of third party logistics services: a Malaysian…

    • 11835 Words
    • 48 Pages
    Powerful Essays
  • Powerful Essays

    Research Plan

    • 1407 Words
    • 6 Pages

    References: Approach to Building and Implementing Business Intelligence Systems , Celina M. Olszak and Ewa Ziemba , University of Economics, Katowice, Poland…

    • 1407 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Logistic Outsourcing

    • 3920 Words
    • 16 Pages

    ABSTRACT The contemporary dynamic business environment is characterized by the short life span of the products due to high frequency of introducing new products in market. It has become a daunting challenge for the companies to introduce differentiated products to meet the customer demands using supply chain management as its objective is to share resources, line up goals and join up forces across company borders. Outsourcing of different levels of logistics plays vital role to make the logistics operations more efficient and has greater impact on performance of logistics service. The analytical portion of this article was done with the help of various theories of outsourcing, levels of logistics activities, impact of logistics service performance. Key words: outsourcing, levels of logistics activities, impact of logistics outsourcing, logistics service performance. 1. INTRODUCTION The study is based on the concepts related to the outsourcing and levels of logistic activities in the logistics service performance. In the current dynamic era which is described by market volatility, cycle times, constant change, and demand to reduce costs and attached with the globalization trend has drive the rising need to outsource the business operations (D’Aveni, Canger, and Doyle, 1995). The return on assets of user’s firm can be improved by outsourcing. Returns can be improved significantly through outsourcing by decreasing the not- insignificant investments in material handling, order picking, warehouse facilities, and information technology and transportation equipment. According to Stuckey and…

    • 3920 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    Logistics is critical to the success of every organization. Once considered an important behind-the-scenes operational activity, logistics is now recognized as a strategic tool for creating customer value and loyalty. Companies like Wal-Mart,Coca Cola,and Nike attribute a great deal of their success to their global logistics systems. They realise that integrating activities within the organization and across the logistics pipeline, building strong relationships with product suppliers, and working with customer-focused logistics service providers are all crtitical to building a competitive advantage through logistics.…

    • 805 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    GENG, J. C., & Guo, A. Y. (2004). Modern Logistics: The Third Source of Enterprise.…

    • 16085 Words
    • 98 Pages
    Powerful Essays
  • Good Essays

    The methodology of doing business has greatly been affected by the emerging technology for the last two decades. Business organizations are forced to adopt new technology in one way or the other in order to cope up with the dynamic customer and industry requirements. The most influential technology is the information and communication technology, which has seen business organizations diver their modes of conducting business from the traditional local based system to computer and internet based information seekers. It is arguable that the advent of computer and internet has changed the role of information in business, and has increasingly affected the supply chain management (Moore, 2000).…

    • 951 Words
    • 4 Pages
    Good Essays