A coordination-theoretic investigation of the impact of electronic integration on logistics performance

Abstract

Using the Coordination Theory, we explored the impact of electronic integration of intra-organizational and inter-organizational business processes on organizational performance in terms of logistics cost and service improvements. Our work extends knowledge on adoption of information technology (IT) in logistics operations, with a focus on examining the performance implications of electronic integration within and between firms in a supply chain. Data was collected from 227 trading firms in Hong Kong and analyzed to investigate the research issues. Our empirical findings revealed that electronic integration is positively associated with logistics performance in cost but not in service, suggesting that electronic integration is not sufficient for delivering superior logistics services. Theoretical and practical implications of our results are discussed.