Investigating the relationships between uncertainty types and risk management strategies in cross-border e-commerce logistics

Abstract

PurposeDue to its fast growth, cross-border e-commerce (CBEC) is becoming a popular internationalization model, especially in those destination markets with impressive e-commerce development like China. However, CBEC also brings new logistics challenges and uncertainty. This paper aims to understand how companies cope with logistics uncertainty in this field and whether the different types of uncertainty influence the risk management strategies adopted to face them.Design/methodology/approachA survey targeting online exporters to China and third-party forwarding logistics service providers (3PFLs) is conducted. A structural equation model (SEM) analysis is performed to test the possible relationship between the adopted risk management strategies and the types of uncertainty. The type, industry and size of the company, as well as the distance between the company's home country and China, are used as control variables in the study. Survey results are enriched via interviews with some of the respondents.FindingsThe risk management strategies adopted are dependent on the type of logistics uncertainty that the companies face and, to a minor extent, on the industry the company operates in. Conversely, no significant influence is exerted by other types of control factors, i.e. home country, company size or company type.Originality/valueThe paper investigates logistics uncertainty and risk management approaches in the novel context of CBEC. A systematic review of relevant sources of uncertainty is offered to help both scholars and practitioners understand the current complexities of CBEC. From a theoretical perspective, the paper models the investigated concepts in light of the contingency approach. From a practical perspective, results can be of interest since the list of proposed items can support risk identification and evaluation while the interviews with managers can provide insights on risk management practices.

Understand China’s cross-border e-commerce industry: a market entry mode

“…China has well-established interconnected railway network that is suitable for long-haul freight while road transportation can remain as short-haul freight. Giuffrida et al (2021) conclude that finding a knowledgeable local partner or choosing an efficient platform could assist the foreign company to tackle logistics challenge.…”

“…China's government is very supportive of this emerging industry, actively guides the private enterprise to participating in CBEC. The internationalise of the Renminbi, the establishment of the CBEC Pilot Zones (Giuffrida et al, 2021) and Belt and Road Initiative (BRI) (Guan, 2021) are some interventions in promoting sustainable growth in the CBEC industry. Nonetheless, the bottlenecks are cultural differences, regulatory variation, integration changes, currency fluctuation, and distancing logistics.…”

“…The establishment of CBEC pilot zones is one of the government policy to drive regional's economic growth and convergence, reduce the productivity gap between economically backward and developed regions through GDP improvement (Ma et al, 2021). Giuffrida et al (2021) explain that the establishment of CBEC pilot zones poses many compliance uncertainties. As it is an independent-basis pilot project, the main governance is at the regional level and full control by the local authority.…”

Implementing E-Commerce from Logistic Perspective: Literature Review and Methodological Framework

“…Food e-supply chain has been considered separately from the others SCND areas as food chains have very different features respect the other markets, due to food quality, safety and sustainability. Almost 26% of the papers focus on key factors and processes influencing SC design [19][20][21][22][23][24][25][26][27][28][29][30][31][32]. Duffy et al [33] individuated as principal processes in e-commerce the order fulfilment, the revenue generation/collection, the financial control, the information technologies, the business processes, the e-integration, the order generation, the 24/7 operation and the consumer behavior.…”

The Impact of Organizational Context on the Levels of Cross-Border E-Commerce Adoption in Chinese SMEs: The Moderating Role of Environmental Context

“…One such approach is the adoption of e-commerce, which provides innovative options and additional conduits to enter into different markets and expand its services, even to other countries [3], and is considered as cross-border e-commerce (CBEC). A system where the sale and purchase of goods and services are taking place from different countries through online platforms is called CBEC [7]. Studies suggest that CBEC operates between countries far from each other [8].…”