Impact of smart logistics on smart city sustainable performance: an empirical investigation

• DOI: https://doi.org/10.1108/IJLM-07-2020-0282
• Published date: 11 March 2021
• Date: 11 March 2021
• Pages: 821-845
• Subject Matter: Management science & operations,Logistics
• Author: Himanshu Kumar Shee,Shah J. Miah,Tharaka De Vass

Impact of smart logistics on smart

city sustainable performance:

an empirical investigation

Himanshu Kumar Shee , Shah J. Miah and Tharaka De Vass

Victoria University Business School, Melbourne, Australia

Abstract

Purpose –Technologies continue to disrupt logistics and freight transport (known as smart logistics), but

their impacts on smart city sustainability is underinvestigated. Drawing on technology, organisation and

environment (TOE) perspective, the objective of this study is to empirically investigate the hierarchical effects

of smart logistics on smart city sustainable dimensions (i.e. environmental, social and economic).

Design/methodology/approach –The study used cross-sectional survey to collect data from urban

transporters, warehouse managers, retailers and information technology (IT) managers in Australia. Data were

analysed using structural equation modeling (SEM) to test the hypothesised relationship between constructs of

smart logistics and smart city sustainable performance.

Findings –The findings reveal that information and communications technologies (ICTs) use and IT

capability (ITC) have positive and significant effects on smart logistics. Technology-enabled smart logistics

have an immediate positive effect on smart city environment, which in turn has positive impacts on social and

economic performance.

Practical implications –The study informs managers that smart logistics equipped with freight transport

telematics can improve smart city environment through enhanced tracking and tracing of goods movement.

The improved environmental stewardship is likely to support social and economic performance.

Originality/value –Smart city research remains primarily theoretical and focussed on concerns surrounding

sustainable growth amid urbanisation and digitalisation. City logistics and urban freights play key role in

smart city economic growth, but vehicular pollution pose social and environmental challenges. Technology-

assisted smart logistics are likelyto improve smart city sustainable performance but yet to find how they affect

each other.

Keywords Smart logistics, Smart city, Sustainable performance, TOE framework, SEM, Australia

Paper type Research paper

1. Introduction

Cities are increasingly transforming themselves from traditional (non-smart) ways of living

to becoming “smart”through utilisation of information and communication technologies

(ICTs). Widespread digitalisation and proliferation of sensing, computing, data

communication and networking technologies are revolutionising the functioning of smart

cities (Zheng et al., 2020). The emerging smart cities are poised to address growing challenges

and complexities by sustaining urban and economic growth while caring for environmental

and social issues (Law and Lynch, 2019). However, it is not yet clear how these technologies

can support the smart city sustainability. Research on smart cities has been growing in the

literature (Law and Lynch, 2019;Mora et al., 2019;Tachizawa et al., 2015;Zheng et al., 2020),

but the definition of what comprises a smart city remains inconsistent (Albino et al., 2015;

Mora et al., 2019). Linking technologies and sustainability, we define that smart cities deploy

digital and communication technologies in city-wide activities to improve efficiency, manage

complexity and enhance quality of life, leading to sustainable city operations.

Urban population growth stimulates the growth of city infrastructure, urban transport,

retails and shopping malls and a range of services for residents. Urban freight transports

Smart logistics

and smart city

sustainability

821

The authorsacknowledge sincere thanksto the anonymous reviewers, associateeditor and editor-in-chief

ProfessorBritta Gammelgaard for offeringtheir valuable suggestionsto improve the quality of the paper.

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 26 July 2020

Revised 17 November 2020

28 January 2021

Accepted 18 February 2021

The International Journal of

Logistics Management

Vol. 32 No. 3, 2021

pp. 821-845

© Emerald Publishing Limited

0957-4093

DOI 10.1108/IJLM-07-2020-0282

(UFTs), in particular, play a major role in city logistics that challenges goods delivery in full

and on time (DIFOT). UFT also has inherent threats of CO

2

emission (Hickman et al., 2011),

which remains all-time challenges for cities and smart cities in particular. Freight transport

telematics on the other hand support functionalities such as real-time vehicle tracking and

tracing, navigation, meeting scheduled delivery windows and assist in pollution reduction

(Gatta et al., 2017;Zacharewicz et al., 2011). Moreover, u biquitous communi cation

technologies are increasingly offering innovative solutions for complex logistics, making

UFTs more intelligent and efficient. For conceptual simplicity, this is termed as smart

logistics, which is based on increased visibility achieved through real-time data capture and

share (Uckelmann, 2008). In absence of an agreed definition, we define smart logistics as the

products/vehicles that possess auto-identification tags and sensors to capture real-time data

about objects, environments and able to communicate data with others within the network;

these features make the process flexible, extendable and intelligent. Here, both products and

vehicles are embedded with web-enabled communication devices (e.g. radio-frequency

identification [RFID] tags, sensors) connected to location-based global positioning systems

(GPS). Technology like RFID tags, surveillance cameras, sensors, Zigbee/Wi-Fi, actuators,

smart mobile phones and handheld tablets are increasingly making their way into smart

logistics space and transforming conventional supply chain communication ever before

(Autry et al., 2010). This calls for an investigation on how the technology-equipped smart

logistics can enhance smart city sustainability.

Smart city studies are theoretically oriented towards multidimensions and

multistakeholder perspectives, occur in isolation and deal with some discrete aspects of

smart city operations. A recent survey-based study shows smart city governance (i.e.

transparency, collaboration, participation, communication, accountability) has significant

effect on improving citizens’quality of life (De Guimar~

aes et al., 2020). Other theoretical

studies on smart cities are quite rhetoric on urbanisation, relating to what makes a city

“smart”and discuss the importance of stakeholders participation (Albino et al., 2015;

Allwinkle and Cruickshank, 2011;Hollands, 2008); smart city performance evaluation using

the triple helix model (Lombardi et al., 2012;Zygiaris, 2013) and cooperative city logistics and

its impact on city performance, business viability and sustainability using a single case study

(Nathanail et al., 2016). Furthermore, Gatta et al. (2017) propose a decision support system for

UFTs planning, considering the city culture and stakeholder engagement, and Law and

Lynch (2019) review technology trends resulting in security challenges. Benevolo et al. (2016)

analyse smart mobility initiatives (i.e. reduction of vehicular pollution, noise, transfer cost

and speed, traffic congestion and people safety) and investigate the role of ICTs in supporting

these actions. This shows lack of empirical studies on how smart logistics can improve smart

city sustainable performance through improvement of triple bottom line.

The objective, therefore, is to empirically investigate the hierarchical impact of city-bound

smart logistics on smart city sustainable dimensions. Technology, organisation and

environment (TOE) framework is used as theoretical lens. The following research questions

address this objective.

RQ1. What supply chain technologies (SCTs) and capabilities support smart logistics

functionalities?

RQ2. How do smart logistics functionalities affect smart city environmental

performance?

RQ3. What extent the environmental improvement affects social and economic aspects

of smart cities?

The remainder of the paper is organised as follows: Section 2 undertakes a literature review to

compile earlier studies on smart logistics and smart cities, leading to hypotheses development

IJLM

32,3

822