An exploratory study of organisational and industry drivers for the implementation of emerging technologies in logistics
| DOI | https://doi.org/10.1108/IMDS-08-2022-0467 |
| Published date | 28 February 2023 |
| Date | 28 February 2023 |
| Pages | 1418-1439 |
| Subject Matter | Information & knowledge management,Information systems,Data management systems,Knowledge management,Knowledge sharing,Management science & operations,Supply chain management,Supply chain information systems,Logistics,Quality management/systems |
| Author | Alka Nand,Amrik Sohal,Ilya Fridman,Sairah Hussain,Mark Wallace |
An exploratory study of
organisational and industry drivers
for the implementation of emerging
technologies in logistics
Alka Nand, Amrik Sohal and Ilya Fridman
Monash University, Caulfield East, Australia
Sairah Hussain
Australian Industry Group, Melbourne, Australia, and
Mark Wallace
Monash University, Caulfield East, Australia
Abstract
Purpose –Emerging technologieshave the capacity to transform industrieso ffering substantialbenefits to
users. Given the increasing demand for advanced logistics services, third-party logistic service providers
(LSPs) face greater pressure to deploy and realise these technologies, especially given the demands and
operational challenges created during the COVID-19 crisis. Drawing upon the diffusion of innovation (DOI)
theory and technology–organisation–environment (TOE) framework, this paper goes beyond just
identifying drivers and barriers to technology adoption to understanding how LSPs and industry
experts perceive these drivers and barriers and simultaneously confront and undertake actions to
implement them.
Design/methodology/approach –An exploratory study was conducted in three phases: (1) in-depth
interviews with twelv e stakeholders in the Au stralian logistics in dustry; (2) five in-de pth interviews
conducted with stakeho lders during the COVID- 19 crisis and (3) a focus group discussion session. Al l
interviews were analys ed using content analy sis and revealed several d rivers for the deployme nt of
emerging technologie s, including interna l organisational fact ors that drive supply cha in (SC) network
optimisation.
Findings –The analysis of the three phases identified several drivers for the deployment of emerging
technologies in logistics, including internal organisational factors that drive SC network optimisation. Also
identified were external drivers including the impact of the COVID-19 crisis, along with barriers and specific
actions that were considered and implemented by LSPs for sustainable operations, particularly in a post-
COVID-19 environment.
Originality/value –This study explores organisational and industry drivers for the implementation of
emerging technologies. Explicitly, it extends the extant research by highlighting organisational and industry
drivers and enablers that influence adoption and deployment of emerging technologies. Second, it advances the
existing perspectives on LSPs in the Australian context on the development and implementation of technology
strategies. The paper offers insights around implementation of technologies, directly obtained from industrial
application for managers and practitioners.
Keywords Emerging technologies, Logistic service providers, Drivers, Barriers, Pandemics
Paper type Research paper
1. Introduction
Emerging technologies have been defined as “science-based innovations that have the
potential to create a new industry or transform an existing one”(Day and Schoemaker,
2000). These technologies, such as the Internet of Things (IoT), big data analytics, artificial
intelligence (AI), machine learning, intelligent robotics, autonomous vehicles and
blockchain, have the capacity to transform industries offering substantial benefits to
users in Industry 4.0 (Dong et al., 2021;Shee et al.,2021;Queiroz and Telles, 2018;
Muessigmann et al.,2020;Schneider et al.,2021;Lee et al., 2023). One such industry is
IMDS
123,5
1418
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/0263-5577.htm
Received 3 August 2022
Revised 11 December 2022
17 January 2023
Accepted 24 January 2023
Industrial Management & Data
Systems
Vol. 123 No. 5, 2023
pp. 1418-1439
© Emerald Publishing Limited
0263-5577
DOI 10.1108/IMDS-08-2022-0467
logistics services. In view of the increasing demand for advanced logistics services further
aggravated through the COVID-19 crisis, there is growing pressure on third-party logistics
service providers (LSPs) to deploy and realise these technologies. Emerging technologies
can offer organisations opportunities to potentially solve complex problems and grow their
business, and to add value to the total supply chain (SC) in achieving competitive
advantage (Roy and Schoenherr, 2020;Ivanov, 2021;Evangelista et al., 2013;Yu et al.,
2017). In the context of Australian logistics industry, emerging technologies can offer
substantial improvements not only in productivity and safety but also in terms of
flexibility, transparency and interoperability (Tu, 2018).
Whilst the opportunities for LSPs and other stakeholders in the logistics industry are
vast and well recognised, they can also present numerous challenges and concerns.
Specifically, the factors that affect the deployment of these technologies and the
corrective actions undertaken in implementation of emerging technologies by LSPs are
not well understood (Veile et al., 2021;Lai et al.,2018). These deployment factors include
regulatory barriers and policy inconsistencies, cost, skills shortages and failure to
understand the opportunities that emerging technologies offer (Fagnant and Kockelman,
2015;Muessigmann et al.,2020;Wee Kwan Tan et al., 2014). Bag et al. (2021) further assert
that implementation of Industry 4.0 technologies requires that organisations adopt new
structures, systems and policies making change management and leadership an
important practice for a timely implementation. Government support complemented
with support of research institutes and universities, management commitment, focus on
human capital, and horizontal and vertical integration have been identified as additional
enablers serving an important role in building the firm’s capabilities to adopt Industry 4.0
sustainably in the SC network (Bag et al., 2021;Shee et al.,2018;Roy a nd Schoenherr, 2020;
Huo et al.,2017). Strategic partnerships and collaboration can facilitate adoption and
SC performance especially since it has been suggested to provide members with a
common goal.
In order for organisations to reap the benefits of emerging technologies, it is imperative to
develop an understandingof how LSPs and industry experts perceivetechnology drivers and
barriers and at the same time undertake concrete actions to implement them. M€
uller et al. (2018)
support this view stating the lack of know ledge specifically around appropriate technology
implementation for economic, social and environmental benefits as Industry 4.0 area is still a
young research field. Kiel et al. (2017) further attribute this to the specific and complex nature of
industry itself which has resulted in existing studies (around implementation) being more
general instead. That is, majority of these studies lean towards offering managers and
practitioners aggregated recommendations whichmay be challengingto understand andfail to
considerthe uniqueand specific characteristicsof a firm and its context.The primarypurpose of
this studyis to extend existingliterature byexploring the drivers,barriers andsolutions for the
deployment and implementation of emerging technologies in the logistics industry. By
employing a qualitative analysis of interviews and focus group discussion inputs as well as
drawing on the diffusion of innovation (DOI) theory and technology–organisation–environment
(TOE) framework, we will shed light on various dri vers and factors that facilitate the
deployment of emerging technologies and analyse how different barriers inhibit adoption and
deployment. The qualitative analysis will also provide an opportunity to dive deeper and
understand the types of actions taken by the LSPs and industry experts to overcome these
barriers especially in a pandemic environment. Unlike previous works, our study goals are not
only to enrich current research but provide more purposeful guidelines by identifying drivers,
barriersand solutions(whichmay have been positively/negativelyimpactedby the pandemic)to
enable a more profound understanding of emerging technologies and relevant implementation
actions for future competitiveness. The DOI and TOE theoretical lenses offer an understanding
on the degreeto which LSPs are actually replyingto the technologicalchallenge in a pandemic
Emerging
technologies
in logistics
1419
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