Blockchain, logistics and omnichannel for last mile and performance

• DOI: https://doi.org/10.1108/IJLM-08-2021-0415
• Published date: 15 February 2022
• Date: 15 February 2022
• Pages: 663-686
• Subject Matter: Management science & operations,Logistics
• Author: Alessandro Gaetano Naclerio,Pietro De Giovanni

Blockchain, logistics and

omnichannel for last mile

and performance

Alessandro Gaetano Naclerio

Sustainability Business Unit, Atlantia S.p.A., Rome, Italy, and

Pietro De Giovanni

Department of Business and Management, X.ite Research Center, Luiss University,

Rome, Italy

Abstract

Purpose –This research investigates the effects that blockchain exerts on omnichannel solutions and logistics

strategies with the aim of solving the last mile issues and improving performance.

Design/methodology/approach –Research hypotheses are developed according to the literature review

and the related gaps. Then, the hypotheses are tested using structural equation modelling and adopting a

partial least squares –path modelling technique on a dataset composed of 157 firms.

Findings –Blockchain technology alone is not an effective driver in solving last mile issues and improving

performance. Rather, it exerts a positive contribution to both omnichannel and logistics. However, omnichannel

is not effective in managing last mile problems and increasing performance without the support of other

practices. Firms need to implement a strong logisticssystem to manage the last mile and get high performance,

which can be then reinforced through blockchain and omnichannel solutions.

Originality/value –This research investigates the novel wave of research on blockchain and its impact on

logistics management and omnichannel. It combines these ingredients to address the issues of last mile and

improve the economic performance. The research provides an empirical verification of a new research stream

that currently lacks empirical support.

Keywords Blockchain, Logistics, Omnichannel, Last mile, Performance

Paper type Research paper

1. Introduction

Today’s companies interact in an ecosystem that undergoes profound and rapid

transformations, driven by digitalization and technological developments (Lim et al., 2018).

E-commerce, the Internet of things, artificial intelligence, blockchain, crypto-payments,

robotics, clouds, big data and augmented reality are only some of the challenges that

characterize the modern economy. These phenomena require the development of new

managerial paradigms, which drives changes in business models and global strategies

(Koh et al., 2019). In this landscape, blockchain complements existing practices and

technologies to solve important business issues (e.g. lack of transparency and trust

(Manupati et al., 2020), visibility and information sharing (Martinez et al., 2019), frauds and

counterfeit products (De Giovanni, 2020), fake information and news (Capgemini, 2018a), risk

of centralized information and errors (Dobrovnik et al., 2018).

Until recently, blockchain was most likely used for managing financial services efficiently

and finalizing transactions securely. However , business applications are continually

increasing (e.g. integration with RFDI (van Hoek, 2019), product traceability and security

(Martinez et al., 2019), incentive mechanisms and smart contracts (Rejeb et al., 2021). See

Blockchain,

logistics and

omnichannel

663

The authors would like to thank the two anonymous Reviewers and the Editor for very helpful and

fruitful comments.

The current issue and full text archive of this journal is available on Emerald Insight at:

https://www.emerald.com/insight/0957-4093.htm

Received 21 August 2021

Revised 1 January 2022

Accepted 25 January 2022

The International Journal of

Logistics Management

Vol. 33 No. 2, 2022

pp. 663-686

© Emerald Publishing Limited

0957-4093

DOI 10.1108/IJLM-08-2021-0415

Vivaldini (2021) for an overview of case studies and applications. Within this framework, our

contribution investigates the effects that blockchain has on omnichannels and logistics. The

primary objective is to solve the last mile issues and improve performance. The last mile

represents a real problem for firms. According to a recent business report by Capgemini

(2018a), last mile is the biggest cost driver of the supply chain, weighting about 41% of the

total. Hence, firms seek to successfully manage the last mile to achieve high performance and

outcomes. Omnichannel solutions and logistics strategies can be effective drivers to mitigate

last mile issues (Lim et al., 2018). The integration of all channels allows firms to offer different

opportunities for consumers to be satisfied. This is an effective practice when managing the

last mile is problematic (Lim and Srai, 2018).

Furthermore, a strong logistics network can effectively solve the last mile issues (Lim et al.,

2018). The adoption of blockchain technology can boost both omnichannels and logistics to

better solve the last mile issue and improve performance. Consequently, we carry out an

empirical contribution to verify the direct implications that blockchain has on last mile issues

and performance and by exploring the indirect benefits it exerts through omnichannel and

logistics. We develop research hypotheses to link these ingredients and test them using

Structural Equation Modelling through Partial Least Squares-Path Modelling techniques on

a sample of 157 firms.

Our findings show that blockchain is a valuable option to reinforce both the omnichannel

strategies as well as the effectiveness of logistics. We also demonstrate that blockchain alone

is not a suitable technology to solve the last mile issues and increase performance. To be

highly effective, blockchain requires well-structured and highly-performing logistics through

which companies can fully exploit the technology potential. Similarly, an omnichannel is not a

suitable driver for improving the last mile, even though blockchain allows firms to better

integrate the channels and pursue successful omnichannel solutions. The synergies existing

between blockchain and omnichannel can boost the logistics potential, which is the main

driver for managing the last mile and achieving outstanding performance. Put differently,

firms cannot rely on blockchain and omnichannel solutions to solve last mile issues and

improve performance. Rather, they should look at blockchain as a general-purpose

technology, which complements the existing systems and improves their effectiveness.

The remainder of this paper is structured as follows. In Section 2, we review the literature

on the variables investigated and present the hypotheses. In Section 3, we describe the data

collection process and test the hypotheses. Section 4 is dedicated to the discussion, the

managerial implications, and the theoretical contributions. Finally, Section 5 presents the

conclusions, the limitations, and the possible extensions.

2. Literature review and hypotheses development

Firms’tendency to integrate offline and online channels to provide a seamless customer

experience finds its roots in continuous technological development (Levy et al., 2013;

Brynjolfsson et al., 2013), the rapid changes related to consumer purchasing habits (Yurova

et al., 2016) and the benefits that omnichannel offers in terms of sales growth (Ishfaq et al.,

2016), brand loyalty, and customer satisfaction (Chen et al., 2018). The literature has deeply

detailed the possible advantages and potential applications of omnichannel (Brynjolfsson

et al., 2013;Grewal et al., 2017;Abrudan et al., 2020). Through successful cases and evidence

(e.g. Tesco and Macy’s(Tetteh and Xu, 2014)), firms are still struggling with the

implementation of efficient and successful omnichannel strategies (Lim and Sria, 2018).

Companies operating in an omnichannel context deal with high supply chain complexity.

Most problems that emerge from omnichannel strategies are linked to the lack of

transparency (Abeyratne and Monfared, 2016) and the need for fast deliveries, flexible

orders and compliance with regulations or quality standards (De Giovanni, 2020), as well as

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