Digital transformation for enhancing LSP (Logistic Service Provider) performance

Abstract

Digital transformation has recently become a way to attain competitive advantages and company differentiation. Digital transformation encompasses an organization’s ability to adapt, respond, and position itself for success in the face of rapid technology evolution. However, the implications are of the digitalization of processes for the performance of companies is still unclear as the transition from one process to another is a challenge for everyone involved that impact on firms’ performance. This research endeavors to address the question of how to enhance digital transformation for better performance through exploring the relationships among firms’ adaptability, resource orchestration and innovation capability. This study used questions formulated using indicator that has been developed on previous study, which enables respondents to display a favorable or unfavorable attitude toward the object of interest. This study was conducted using the survey method. Data were collected using questionnaires sent to 70 middle managers and top-level management of logistics service provider companies that are based in Indonesia. Then the structural equation modeling (SEM) path analysis were adopted to test all hypotheses as developed in this study. This study seeks to contribute to a better understanding of digital transformation by analyzing adaptability, resource orchestration and innovation capability that led companies to adopt new digital transformation and their consequences in terms of performance. The overall impact regarding the digital transformation to logistic firms’ performance seems to be moderately positive. The research presented gives an indication of the impact of the adaptability, resource orchestration, and innovation capability being central for Digital Transformation in logistics firms.

Integrating Digitalized Data and Optimization Method for Automated Production Planning in Sewing Lines

“…In contrast, the readiness of human resources for digital transformation was underscored by Marzenna et al [7]. Muhammad and Anton [8] delved into the impact of new technology changes on the digital transformation process, analyzing adaptability, resource allocation, and innovation capabilities as elements positively influencing implementation.…”

The Factors Affecting Digital Transformation in Vietnam Logistics Enterprises

“…The 4.0 industrial revolution has highly changed, affecting all aspects of human life, such as in economic, political, social, and logistical areas [1][2][3]. According to [4,5], logistics is the supply chain service industry in delivery, transport, customs procedures, and goods. Logistics is considered one of the living backbones of the digital economy in many areas, from production, distribution, and circulation to consumer goods-supporting, connecting, and promoting the country's socio-economic development and localities.…”

“…Thus, digital transformation is the essential trend for logistics enterprises that want to succeed in the age of 4.0. The trend became more popular after the COVID-19 pandemic, and firms had to adapt flexibly to new social conditions [4,12].…”

Factors Affecting Digital Transformation in Logistic Firms

“…The rapid advancement of digital technologies have changed the competitive dynamics of logistics industries (Cichosz et al 2020). According to Muhammad and Anton (2022), logistics is the supply chain service industry in transporting and delivering goods. Digitalisation in logistic firms is an increasingly popular topic among scholars (Herold et al 2021).…”

“…DT enables logistic firms to drive efficiency and lower cost as well as pursue new business opportunities (Shadibekova and Ismoilov, 2021). Taufani and Widjaja (2022) found that DT in logistic firms embrace firm performance. On the other hand, DT provides many benefits such as increasing efficiency, enhancing customer experience, managing complex supply chains etc.…”