Linking digitalization and human capital to shape supply chain integration in omni-channel retailing

Abstract

PurposeSupply chain integration (SCI) is key to implementing omni-channel retailing (OCR) strategy. In this paper, the authors explore the role of digitalization as a driver of SCI, as well the role of human capital (HC) in digitalization, using a knowledge management (KM) perspective.Design/methodology/approachAn empirical study was conducted using survey research. A sample of 188 omni-channel retailers in the Chinese market was analyzed using factor analysis and structured equation modeling (SEM) to examine the hypotheses presented in the conceptual model.FindingsThis study reveals that HC is positively related to the level of a firm's digitalization in OCR, and that digitalization is positively related to the retailer's SCI. Moreover, the authors found that employees' capital has a greater impact on digitalization than managers' capital, while digitalization has a stronger driving effect on internal and customer integration.Research limitations/implicationsThe findings suggest that although digitalization requires retailers to accept the long-term investment challenges, it has a significant positive effect on the key of OCR strategy implementation, i.e. SCI. The findings also provide evidence for the application of KM in OCR, as this theoretical lens enriches our understanding of the phenomena of SCI in OCR and provides explanation to our results by linking digitalization and HC.Originality/valueDigitalization is quantified and examined in OCR. Moreover, this study reveals the importance of HC on the implementation of digitalization and the different effects of digitalization on each dimension of SCI.

Influence of IT support on firms' cross-channel integration: the moderating role of institutional environment

“…Adding, integrating, and blurring channels also raises operational challenges for cross-channel coordination (Van Baal, 2014) as it requires the merging of databases, management of cross-functional information, adoption of disruptive technologies, and redesigning of front- and back-end operations (Cao and Li, 2018; Lewis et al. , 2014; Song et al. , 2021).…”

Digitalization for supply chain resilience and robustness: The roles of collaboration and formal contracts

“…Digitalization refers to the adoption of digital technologies to transform intra-and inter-organization activities (Eller et al, 2020;Yang et al, 2021;Zhou et al, 2021). The measures of digitalization include five items based on prior studies (Eller et al, 2020;Son et al, 2021;Song et al, 2021;Yang et al, 2021;Zhou et al, 2021). SC collaboration is defined as sharing information, resources, and knowledge to achieve mutual objectives together with SC partners (Cao and Zhang, 2011).…”

“…In the context of Industry 4.0, practitioners and scholars have extensively discussed digitalization in the field of SC management. Digitalization is the adoption of digital technologies to create new processes or transform existing processes to adapt to the changing business environment (Eller et al, 2020;Song et al, 2021;Zhou et al, 2021).…”

The contribution of digitalisation, channel integration and sustainability to the international performance of industrial SMEs

“…Digitalisation has positive effects in channel integration by facilitating channel management activities and processes (Wu et al, 2022). In an omnichannel context, the increasing connectivity of devices, advances in artificial intelligence and automation present the opportunity for a more seamless integration of the distribution and supply chain (Song et al, 2021). Castorena et al (2014) confirm that companies incorporating ICTs in their supply chain relationships obtain good results, allowing them to achieve better control of human resources and records management, product quality control and any agreements entered into with suppliers; these are aspects that define integration and which can be extrapolated to relationships with distribution channel members.…”