Supply chain integration in omni-channel retailing: a logistics perspective

• Pages: 527-548
• Date: 13 May 2019
• DOI: https://doi.org/10.1108/IJLM-12-2017-0349
• Published date: 13 May 2019
• Author: Guang Song,Shaohua Song,Luoyi Sun
• Subject Matter: Management science & operations,Logistics

Supply chain integration in

omni-channel retailing: a

logistics perspective

Guang Song

School of Economics and Management,

Beijing Jiaotong University, Beijing, China, and

Shaohua Song and Luoyi Sun

Beijing Jiaotong University, Beijing, China

Abstract

Purpose –The purpose of this paper is to apply resource-based theory to identify the relationships

between logistics integration capability, supply chain integration (SCI), and performance in the context of

omni-channel retailing (OCR).

Design/methodology/approach –An empirical study was conducted based on a mixed methodology that

integrates survey research and focus group. In total, 243 retailers in China have been surveyed to examine the

hypotheses of the proposed conceptual model, and focus group discussion has been applied to interpret

the results and identify the critical concerns on the implementation of omni-channel (OC) strategy.

Findings –This study reveals that the information integration capability and organization integration

capability in logistics management significantly affects SCI, while the integrated supply chain has a greater

significant influence on financial performance than operational performance to OC retailers. Moreover, a

firm’s characteristics can be regarded as contextual factors influencing performance in OCR.

Research limitations/implications –The authors obtained valuable insights for both academics and

practitioners based on the findings. On the one hand, this is an early attempt to empirically study SCI of OCR,

revealing the importance of a firm’s nature in the performance. Therefore, this study fills a current research

gap. On the other hand, this research provides top managers of OC retailers, particularly supply chain

managers, the awareness of the importance of improving of organizational integration and human-resource

management capability. Additionally, this study proposes future research based on its limitations.

Originality/value –SCI is investigated in the context of OCR from a logistics perspective. Moreover, this

study reveals that the human-resource management and organization management are the main concerns in

the implementation of OCR.

Keywords China, Supply chain integration, Omni-channel, Retail logistics, Mixed method

Paper type Research paper

Introduction

Some retailers have developed both online and offline channels to explore business

opportunities in recent years (Hsieh et al., 2012). As the line between online and physical

channels is blurred, a new approach to channel integration is emerging: the omni-channel

(OC), which aims to deliver a seamless customer experience, regardless of the channel

(Rigby, 2011; Gallino and Moreno, 2014; Piotrowicz and Cuthbertson, 2014). Some

researchers (e.g. Zhou, 2015; Murfield et al., 2017) have suggested the development of

omni-channel retailing (OCR) depends on the integration of logistics, because it is the

backbone of an OC strategy. However, the critical capabilities affecting the integration of the

order-fulfillment activities and the potential improvement in performance are still not clear.

Therefore, several retailers are less motivated and overcautious in channel integration, since

less effective logistics integration among channels could lead to additional costs and the

The International Journal of

Logistics Management

Vol. 30 No. 2, 2019

pp. 527-548

© Emerald PublishingLimited

0957-4093

DOI 10.1108/IJLM-12-2017-0349

Received 28 December 2017

Revised 25 May 2018

24 October 2018

14 December 2018

7 January 2019

Accepted 23 January 2019

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

www.emeraldinsight.com/0957-4093.htm

This research is supported by National Nature Science Foundation of China (No. 71871009), Beijing

Social Science Fund (No. 17GLC041) and Major Cultivation Project by Beijing Jiaotong University

(No. 2015jdzd03).

527

SCI in OCR

potential loss of competitive advantage (Beck and Rygl, 2015; Jeanpert and Pache, 2016;

Wiener et al., 2018).

In the literature, despite OCR receiving close attention, the number of studies discussing

omni-channel logistics (OCL) is still small and most extant literature is qualitative

(e.g. Ishfaq et al., 2016; Hübner, Wollenburg and Hozapfel, 2016). Therefore, several

researchers (e.g. Govindarajan et al., 2017; Melacini et al., 2018) have called for quantitative

studies to examine the conceptual integration frameworks related to logistics issues and to

provide trustworthy insights. To fill the academic gaps and to offer more practical insights

on supply chain integration (SCI) in OCR, this research applies a resource-based theory to

conduct an empirical study from a logistics perspective, aiming to identify the relationship

between logistics integration capabilities, SCI and firm performance. The sample consists of

Chinese retailers, because China is one of the rapidly growing retail markets in this world,

largely due to the exploration of channel integration, leading to seamless services to

consumers (MOFCOM, 2017).

We contribute to the OCR and SCI literature in several ways. First, this study is an early

attempt to empirically examine the effect of integration capabilities from a logistics

perspective on SCI and evaluate the potential benefits of channel integration on

performance. Second, we extend the SCI literature in the retail sector, whereas previous

studies focused on manufacturing. Meanwhile, this study considers various integration

capabilities, rather than the single capabilities examined in the prior literature. Moreover,

the results of this study enhance the inner motivation of retailers and provide valuable

practical advice to practitioners.

The remainder of this study is organized as follows. The second section presents a

literature review of relevant topics. The third section explains the hypothesized conceptual

model. The fourth section explains the research methodology, and the fifth section presents

the results of the empirical analysis. The sixth section discusses the main findings, and the

seventh section presents the conclusion, limitations and future research lines.

Literature review

Omni-channel logistics integration

The success of OCR depends on the integration of logistics system among channels

(Hübner, Holzapfel and Kuhn, 2016), because it enables the delivery of synthesized and

consistent logistics service to consumers. Despite the benefits of integrated logistics

addressed in the OCR literature (Cao and Li, 2015; Chatterjee and Kumar, 2017), the

number of studies on logistics issues, particularly the OCL integration, is still limited.

Some articles related to logistics integrationinOCRcanbefoundinthetypicalsupply

chain management (SCM) and marketing journals. Information system journals also cover

this topic. Five special issues from International Journal of Physical Distribution &

Logistics Management (Issue 6/7, 2016 and Issue 4, 2018), Journal of Retailing (Issue 2, 2015

and Issue 1, 2017) and Internationa l Journal of Electronic Ecommerce (Issue 4, 2014)

provided valuable academic contributions.

From those limited contributions, some studies claimed that a synthesized logistics

system enables the integration of channels. For example, Cao (2014) highlighted the

synthesized and optimized logistics network could support the delivery of merchandise and

manage online and offline inventories and shipments. Lewis et al. (2014) suggested the

re-design of logistics infrastructure to promote retailers and to combine channels. To realize

the integration of logistics systems among channels, several conceptual models were

proposed, based on qualitative analyses. For example, Hübner, Holzapfel and Kuhn (2016)

classified the types of various distribution systems and analyzed the characteristics for each

to develop a conceptual framework of an OC distribution system. Hübner, Wollenburg and

Hozapfel (2016) discussed the transition of retail logistics and proposed a conceptual

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