Enhancing the Logistics 4.0 Firms through Information Technology

Abstract

In the logistics service industry, the rapid advancement of Information Technology (IT) has cultivated a competitive dynamic that promotes uptake of logistics information technologies by Logistics Service Providers (LSPs). However, there remain many LSPs who have yet to embrace IT and thus have not realized their fullest competitiveness and financial success. This research conceptualizes the role of IT in logistics operations and investigates the degree to which IT, its usage, and its capabilities can affect LSP performance and competitiveness. The research interviews a logistics operations manager and the findings support that a firm’s performance and competitive advantage are influenced by IT usage and (especially) capability. As IT capability complements service processes and allows for innovation in services, this research and suggested future research provide not only theoretical and technological but also managerial implications.

1. Introduction

In this era of extensive digitalization, IT has enabled considerable innovation in logistics, particularly as a prominent factor in the modernization of Industry 4.0, which impacts nearly all aspects of business operations. The corporate sector first adopted IT following the introduction of data processing applications in the 1960s [1]. Successful implementations in this area led to the evolution of new approaches for improving business and commerce efficiency, including the Electronic Data Interchange (EDI), intranet, extranet, and internet [2]. All told, a company’s interactions, particularly those with customers, prospects, and business partners, are immensely impacted by the integration of IT into the business ecosystem [3]. Notably, in the context of international markets, leveraging IT allows agile and responsive companies to much more quickly analyze and react to sudden developments [4]. Thus, technological developments have irrevocably changed the operation of the corporate sector, and especially the logistics service industry [5]. However, the value of technology lies in its impact on a firm’s competitiveness and the degree to which IT impacts firm performance and thus competitiveness has yet to be elucidated, especially in relation to the associated costs of implementation.

The term “logistics” was in relation to the military; it concerns moving goods from one location to another and hence hinges on two core functions, transportation and storage. Collectively, logistics operations constitute the backbone of the supply chain [6]. Supplying material and components to businesses became more difficult as the 20th century progressed, leading to the emergence in the 1950s of logistics as a business concept; it has in the decades since constituted an essential element of economic indicators. From a high-level perspective, the logistics industry creates important economic contributions in the form of job creation, foreign investments, and national income even as it provides a venue for competition amongst corporations [7]. Moreover, the demand for logistics services has continued to increase in recent years, provoking the evolution of the industry. Not only are logistics supply chains expected to provide essential services, but businesses also require that they provide unique value propositions. For example, it is becoming more common for logistics and freight companies to not only pursue excellence in their logistics operations so as to foster goodwill with merchants and customers, maintain competitiveness, and realize long-term growth, but also to pursue sustainable operations that impose a minimal adverse ecological footprint. This objective is an important element in the fourth industrial revolution, the transformation currently underway [8,9].

Referred to as Industry 4.0 or I4.0, this present industrial transformation is notable for its speed, magnitude, and depth and for the considerable turbulence and disruption it has brought to global industries. With I4.0, the objective is for Information and Communication Technologies (ICTs) to permeate and become comprehensively integrated with processes of production and distribution [9,10], culminating in a series of networks that bridge the divide previously extant between the physical and pure information collected will now be grouped in technological developments [11]. Indeed, it is anticipated that widespread digitalization, big data, and implementations of emerging developments such as blockchain, artificial intelligence (AI), and the Industrial Internet of Things (IIoT) will bring paradigm shifts to the logistics industry and international transportation. Ultimately, for companies able to leverage these technologies, the continuous improvement of logistics and supply chains is expected; such firms will pull ahead of those that fail to adapt in a timely manner [2,12]. The technologies currently transforming business operations are illustrated in Figure 1 [12,13]. Importantly, established management techniques and systems are presently confronting their limitations and being challenged by digitalization and I4.0 [14].

I4.0 has made available a number of digital technologies that are being interwoven into the logistics sector [5,9,12] and utilized by myriad companies to facilitate their operational development; a recent survey found that 80% of businesses were already employing at least one such technology, which was associated with a 58% increase in annual revenue [15]. Both short-term and long-term gains are expected from a company’s leveraging of IT [10]; however, there remains a great deal to be explored regarding new means of using Industry 4.0 for value creation.

In particular, intelligent technologies and the realization of smart logistics facilitate the creation of strategic opportunities. In the words of Facchini [16], Logistics 4.0 will allow businesses to meet the needs of every individual customer without incurring additional costs. As each ICT under the umbrella of Logistics 4.0 represents a novel solution for a particular area of logistics, ICTs collectively impact numerous critical activities such as transportation, inventory management, and material handling [17,18]. Given that digitalization and innovative trends are likely to proceed over the next few years, company logistic activities will likewise advance and promote revolutionary changes in logistics and international transport [19]. Already, transportation time is being reduced, delivery reliability and speed increased, inventory levels decreased, conversion times shortened, planning processes improved, and the need for warehouse laborers reduced. Additionally, this is reducing order rate loss and increasing rate order accuracy and the fulfilment of order rate [2].

Most recently, the uncertainty provoked by COVID-19 has impelled innovation in business models like never before; what would previously have required months can now be accomplished in days [20]. The logistics sector responded to the abrupt spikes in demand and constrained availability of essential commodities and medical supplies associated with the pandemic by accelerating digitalization, which has effectively cemented digital technologies and the digitalization process as essential to logistics and transport.

In addition to the adoption of digital technologies, implementing and utilizing intelligent technologies in logistics and the supply chain industry is paramount to improving competitiveness. ICTs especially have great promise in supporting high-performance supply chain operations through facilitating greater efficiency of production and distribution systems, an attribute that has attracted considerable stakeholder attention. However, while there is certainly an integral role for innovative digital technologies within the logistics industry, the degree to which these technologies affect firm performance remains debatable as few studies have provided empirical evidence. The high cost and frequent failure of IT investments in terms of operational and financial performance may explain this [20,21].

The literature states that information technology implementation is critical to logistics productivity and competitiveness. However, how IT contributes to competitiveness is vague; hence many logistics firms are still in the black box. We need more research to discover the effect of IT on performance and competitive advantage. The research aims to detect diverse IT attributes and, grounded in the literature, find how diverse IT attributes are conceptualized to obtain firms’ competitive advantage. The research will answer the following three research questions: (1) What are IT attributes? (2) How do firms conceptualize IT? (3) How do IT attributes contribute to competitiveness? The first question provides answers for different attributes of IT and its measurements. The second research question offers a solution to how IT has been conceptualized, given that attribute measurement is more conducive to competitive advantage than ownership. Finally, the third research question answers the determinant of IT attributes for performance and competitive advantage of the well-off LSP.

This research uses an interview of a successful LSP to answer these questions. The interview questions are gained from the theoretical framework that holds IT implementation is critical for firm productivity and competitiveness. The article begins as follows. Section 2 describes the development of the theoretical framework. Section 3 displays the methodology for this research. Section 4 provides the findings and discussion. Section 5 presents the research conclusion, limitation, and suggestions.

2. Theoretical Background

El Hamdi and Abouabdellah argue that, with the great emphasis in recent years on Industry 4.0, there is need for a parallel development in the form of Logistics 4.0 [9]. Companies in all areas of logistical and supply chain procedures are already adopting core I4.0 technologies, for example big data, cloud computing, and the IoT. These are being applied to diverse areas such as processing and planning, supply and manufacture, and delivery and return, and promise to positively impact logistics processes through making an effort more efficient, shrinking lead times, and streamlining flow. By leveraging the interconnectivity aspects of Industry 4.0, it becomes possible to deploy new manufacturing systems that incorporate real-time data and intelligently support decision making [2,22,23]. Hence, it is necessary for logistics and supply chain businesses to identify a path forward in which they maintain competitiveness and align with industry standards, typically by remodeling their business values [22].

A considerable amount of the literature has discussed logistics innovation, resulting in a plethora of definitions. Frequently, innovation is framed as a product or service created by new technology and newly introduced to the business market [24]. Drucker [25] defined it as a specialized instrument utilized by stakeholders of logistics companies or supply chain service providers to exploit change, improve logistics and operational performance, and remain current with the field so as to continue pursuing advantage. Innovation can also be cast as a discipline, something that can be practiced across the logistics industry and developed through research. Thus, innovation as a concept may adopt several different forms, including new ideas, practices, technologies, services, and it can encompass logistical equipment, products, processes, and policies [26,27]. Here, we understand innovation capability as representing a company’s capacity for effective innovation through the development of new goods and processes and the improvement of technical and operational performance; as such, it can act as an indicator of the company’s ability to achieve a competitive advantage.

With regard to business adoption and the assimilation of IT, numerous studies have characterized the underlying factors that drive these processes [8,9,28]. Adopting an explorative approach, Mathauer and Hoffmann [28] examined the degree to which logistics service providers adopted technology and found that the integration of innovation acceptance differs widely depending on factors in the integration process, including the make, buy and ally strategies, process quality, cost, and time required. Notably, in addition to hardware and software, technological infrastructure includes both customized and standardized solutions that can be easily accessed off-the-shelf and meet customer needs. When a logistics service provider adopts a technology, the provider’s particular characteristics should be considered, for example the scope of its services, its owner structure, and its size.

Kalkan [2] investigated the relationship between IT use by logistics firms, business performance, and customer satisfaction and found them to be positively related. The three leading indicators for customer satisfaction and business and logistics performance were reported to be IT, information sharing logistics, and IT applications. Accordingly, it is necessary that logistic companies pursue technological support to increase the efficiency, quality, diversity, and capacity of their services.

Ultimately, the literature to date highlights that innovations in logistics derive their importance from advancements in IT. There remains an open question as to whether businesses in logistics and the supply chain can employ innovation in logistics as a tool for attaining a desired level of impact and hence competitive advantage.

Due to existing research offering no universal definitions for relevant terms,

Table 1. Vocabulary and definitions used in this article.

Term	Definition
Logistics Performance	Logistics costs, logistics services, ability to supply customers in a timely manner with reliability and flexibility [29].
Customer Performance	The key factor in measuring business success is through customer satisfaction with company’s products and services [30].
Operational Performance	Quantifiable process outcomes: inventory turnaround, production cycle time, reliability, etc. [2,31,32].
Financial Performance	Budgeting, cash flow, cost-cutting, market value, growth, profitability, labor savings [33].
Information Technology Capability	The ability of a business to identify IT that meets its needs, cost-effectively deploy IT to improve its processes, and provide long-term maintenance [34].
Use of Information Technology	The types of IT used by a company to improve its performance.
Usage of Information Technology	The time of process and the amount of time a company spends on IT in a day.
Firm Size	Two measures: annual sales turnover and number of full-time employees [35].
Firm Age	Years since the company was incorporated [36].

enumerates the vocabulary used here along with corresponding definitions so as to avoid confusion and ambiguity.

2.1. Logistics Information Technologies (LITs) and Performance

Logistics innovation does not solely depend on IT and organizational capabilities. For one, environment uncertainty means that IT alone is not able devise operational value for a logistics firm to attain value in the market; the said uncertainty is inclusive of new technologies, changes in business model patterns, new market entrants and associated disruptive forces, and changes in customer expectations. All these perturbations necessitate that logistics companies adjust their resources as best befits their business goals in the moment. Notably, while IT is unlikely to provide operational value on its own, in conjunction with organizational capabilities that favor complete penetration with vertical and horizontal integration of the company’s logistics and supply chain operation, it can create a transformative competitive advantage. Thus, in the winner-takes-all market, it is essential that the most fitting technology be applied in businesses’ logistics activities [2].

Innovation capabilities encompass IT-based tools and other resources with which a data-driven approach can be applied to support human decision making [4]. Such tools do not strictly need to constitute a radical innovation, but rather can consist of existing technologies customized to suit a business’ individual characteristics. Overall, innovation capabilities can be considered to transform ideas into practical solutions; when combined with networked devices, fast and reliable delivery, and efficiency in logistics productivity, these capabilities contribute to advancing information visibility and connectivity and decreasing negative environmental impacts [9]. Mathauer and Hoffmann [28] further mention that an innovation need not be new for the market as a whole, but rather may be novel for the firm. Where many logistics companies fail is in their mindset as regards the change.

An organization’s dynamic capability describes how readily it can absorb and respond to the speed of digitalization. The successful adoption and integration of IT by a logistics and supply chain organization greatly impacts its dynamic capabilities. Considerable evidence indicates that innovation integration and also research and development aimed at improving a firm’s innovation capability can be enhanced by factors such as an organizational culture shift concerning innovation, leadership, risk and experimental acceptance, sharing of knowledge, and digital learning [22,28,37].

When it comes to competitiveness, several factors are known to be relevant for logistics and supply chain companies. Innovation and development are imperative, as these have the potential to induce sweeping changes in how logistics is perceived [12]. Additionally, companies that invest in information systems are more likely to become ahead of their competition and acquire a commanding position in global supply [2,14]. Finally, both Bakan and Sekkeli [4] and Wang et al. [8] have suggested that greater IT capability enables a company to develop greater supply chain potential within and across its organizational boundary, which in turn reinforces its agility.

In this vein, modern companies employ IT advancements to significantly enhance information exchange efficiency in areas such as logistics and data analysis without dependence on face-to-face interactions [9]. Through technological devices combined with the adoption of big data, businesses and institutions can track every logistical and supply chain demand and so maintain organized and detailed records [12]. Further advancements in streamlining platforms and applications will further simplify the interconnection of services and supplies.

How any one company specifically utilizes IT depends on the purpose it serves and the services the company provides [8]. Numerous industries rely on IT for filtering information, processing data, and increasing organizational capabilities. The rapid adoption of digital strategies and approaches is in part due to the high pace of technological development, which is spurring many logistics and supply chain businesses to reinvent themselves [38]. The allocation of company resources towards technology is suggested to benefit many companies [8,28].

Indeed, when it comes to capabilities, the potential of IT is limitless. Hardware and software can be employed to coordinate activities within an organization’s process, improving data acquisition and efficiency. As a utility, IT exists within the context of an ever-changing infrastructure, environment, and resources [9,12,14]. In a matter of decades, computers have progressed from tools that deliver information to all-in-one devices through which businesses can both cater to customers and track their expenditures, returns, and profits. Notably, given the rapid progression of technological growth, IT can serve as an accurate predictor of future business revenue and growth; more specifically, if a business fails to allocate sufficient resources to its IT department, they risk being left behind. Hence, when examining the effects of innovation, it is necessary to consider that those effects depend on the organizational context; a business’ vitality and size depend on its IT investments and some businesses preferably allocate resources to other areas and departments that are regarded as higher priority [28].

In following sections, this article examines aspects of IT that can serve as constructs and measures of the level of impact and hence performance and competitiveness. Figure 2 presents the model used here to guide obtaining a deeper understanding of logistics IT, which was developed following a thorough review of the prior work (refer to Appendix A).

2.2. Conceptualization of Information Technology

2.2.1. Information Technology (IT) Assets

IT consists of the tangible assets and technological resources used for the creation, processing, storage, securing, and exchange of any manner of electronic data. Often, it specifically refers to the physical infrastructure and software necessary for modern computing, such as computers, networking devices, and programs.

According to Karia [21,39], technology resources are inclusive of facilities and equipment, information systems, logistics systems, web-based systems, and other advanced technologies. The resources that might be adopted by LSPs include those pertaining to logistics, data acquisition, information, warehousing, and transportation (such as GPS and GIS). Logistic information technologies (LITs), in particular, can also be framed as technology-enabled logistics; these include shipment tracking and associated notices; facilities for internet service, cargo tracking, and other information; automated systems for material handling, storage, and tracking; and other more sophisticated logistics systems.

Table 2. Types of information technologies.

Type of IT	Description	Source
Big Data Analytics	Huge data volumes that exceed standard database software tools’ capabilities to acquire, preserve, handle, and interpret information because of their nature	[38,40]
Electronic Data Interchange (EDI)	Data transfer between other businesses’ computers in a formatted, organized, and recoverable manner; examples include statements, delivery notes, and sales order.	[41]
Blockchain (BC)	Distributed ledger that keeps track of transactions using a network of computers and databases in which all of the entries are similar.	[41,42]
Radio Frequency Identification (RFID)	Data exchange through electromagnetic waves between terminals and objects for authentication and trace tracking of commodities such as products, livestock, and people.	[38,41]
Information and Communication Technology (ICT)	Combining software, telecommunication, and governance data availability, security, processing, transmission, and storage rules.	[43,44]
Electric Vehicles	Strengthened the development of electric mobility by taking into account a wide range of technologies.	[45]
Information Technology	The development, improvement, and use of software applications, systems, and networks.	[2,46]
AI Technology	Machine learning system replacing human labor with autonomous robots for repetitive activities.	[47]
Information System	Combination of resources and skills centered on the effective use of IT to generate value.	[32,48,49]
Warehouse Management Systems (WMS)	An application designed to facilitate the efficient management and execution of warehouse, distribution, or fulfilment center activities.	[50]
IoT (Internet of Things)	An industrial IoT application that maximizes and automates data collecting to enhance process traceability and real-time production decision-making.	[38]
IT Capability	Integrated bundles of IT resources that let enterprises effectively organize business operations via mobilization and deployment.	[51]
Information Systems Usage	Information gathering, provision, arrangement, and use that helps an organization run smoothly and successfully.	[48]

lists many types of IT that have been adopted by LSPs.

Ultimately, logistic firms acquire IT for the sake of innovation, efficient provision of services, and to improve their operation’s performance. Better IT infrastructure and resources thus constitute valuable tools for logistics firms and deploying them is essential for all management levels within a company. In particular, IT can support lower-level managers in adapting to changing business practices and procedures, mid-level managers in making decisions, and upper-level management in providing competitive advantage strategies.

Overall, investment in IT has been shown to positively impact a company’s production, revenue, quality, performance, and competitiveness [30]. Accordingly, the specific advantages realized by logistics companies due to the use of IT merit more detailed investigation [2]. It is generally agreed that IT helps logistic companies increase delivery reliability, reduce transportation costs, improve planning processes, shorten conversion times, and increase profitability and competitiveness [2,9,22,23,28,52].

2.2.2. Utilization of Information Technology

The utilization of IT refers to the actual amount of time spent using information systems to perform duties in the office, processing time, and the degree to which information systems are relied upon when carrying out tasks [48]. It has been suggested that many IT projects fail on account of users refusing to effectively utilize the IT in their everyday work. Consequently, low IT usage might negatively impact a company’s performance outcomes.

In their own right, IT applications might affect short-term performance outcomes and do not guarantee sustained competitiveness [21,39]. It has been suggested that the impacts of IT applications depend on how firms adapt and exploit their own embedded knowledge resources to leverage those technologies [21,39]. Therefore, the degree to which firms utilize IT is a good predictor of performance and competitive advantage. It is generally agreed that the logistics industry will see a significant impact from I4.0 technologies if utilized to their fullest potential. It is generally agreed that the logistics industry will significantly impact I4.0 technologies if utilized to their fullest potential [12,13,53].

2.2.3. Information Technology Capability

An organization’s IT capability encapsulates the implementation of its skills, abilities, and knowledge through organizational processes for the coordination of activities. It is inclusive of not only IT infrastructure but also human resources, relationship resources, and business expertise [4]. Thus, IT capability is intertwined with business, process, enterprise, information, service, and systems offerings. Analyzing the effects of businesses’ digital capabilities, Scuotto et al. [54] examined over 2 million European Small and Medium-Sized Enterprises (SMEs) representing 24 countries and found that digital capabilities positively influence innovation, helping generate business value and increasing revenue and employment growth. Indeed, in information-intensive industries, IT capability is a company’s single most important strategic resource. Ultimately, to attain a competitive advantage on the global stage, it is necessary that managers invest in IT capability [4].

With that in mind, this research suggests that IT capability be conceptualized as a business’ ownership of IT-related infrastructure (such as communication technologies and computers), human capital (cf. management and technical skills) and intangibles (such as corporate culture and orientations toward the customer and environment) [55]. Framing IT capability in this way can explain why firms that adopt IT achieve competitive advantage [21,39]. In particular, logistics and IT scholars have confirmed that IT human capital has a positive effect on cost advantages and mediates the IT-cost advantage relationship [21,39]. Therefore, technology, organization, and knowledge resource capability as a collective whole significantly impact a firm’s competitive advantage [56]. In practice, IT capability is often reflected in the high use of business-specific IT solutions.

2.2.4. Information Technology and Performance

IT applications that positively impact performance comprise independent variables that influence the success of a business. These applications include IT use, utilization, and capabilities, which specifically impact logistics performance, customer fulfillment, operational performance, and financial performance. Many constructs and metrics are used to quantify performance outcomes, as depicted in

Table 3. Summary of performance constructs.

No	Dependent Variable	Measurement	Source
1.	Logistics Performance	Transportation Service Speed	[44]
		Transportation Performance	[57]
		Transportation Performance	[58]
		Reduced Emissions	[45]
		Logistics Performance	[44]
		Transport Value	[45]
		Logistics Performance	[59]
		Logistics Performance	[2]
		Cheaper Shipping and Trucking Cost	[48]
		Logistics Distribution Cost	[60]
2.	Financial Performance	Financial Performance	[61]
		Financial Performance	[38]
		Economic Performance	[62]
		Economic Performance	[61]
3.	Customer Satisfaction Performance	Customer Satisfaction	[2]
		Customer Fulfillment	[57]
		Service Quality Performance	[60]
		Faster Delivery Service	[48]
4.	Operational Performance	Operational Performance	[63]
		Reduced Distribution Errors	[2]
		Operational Performance	[31]
		Operational Performance	[32]

(also refer to Appendix B). However, the degree to which a given technology impacts performance outcomes varies, as outlined in

Table 4. Technologies and impacts.

Technology	Impacts and Contributions
Advanced Robots	Autonomous robots equipped with standard interfaces, integrated sensors, and cooperative capabilities.
Additive Manufacturing	3D printers, primarily used in prototyping and creating spare parts. Decentralization of 3D-printing facilities allows inventory reduction and shorter transport distances.
Augmented Reality	Digital elements used to facilitate SOPs, logistics, and maintenance. Devices for AR display, e.g., glasses.
Simulation	Simulation and optimization of networks based on data collected in real time by intelligent systems.
Horizontal and Vertical System Integration	Intra- and inter-company integration of data through a standard transfer protocol. Integration throughout the value chain (from producer to end-user) and organizational levels (from production floor to C-suite).
The Industrial Internet of Things (IIoT)	Multidirectional communications linking products and machines, along with the resulting network.
Cloud Computing	Open systems that manage immense amounts of data. Allows production system elements to communicate in real time.
Cyber Security	Mitigation of security risks that result from extensive networking of systems, products, and intelligent machines.
Big Data and Analytics	The thorough examination of large amounts of data obtained from machines, systems for manufacturing, SCM, ERP, and CRM, or elsewhere. Supports real-time decision making and its optimization.

.

3. Methodology

3.1. Research Interview

This research detects diverse IT and IT conceptualization attributes based upon a theoretical framework grounded in the literature. Then, it discovers and confirms their impact on performance through the research of a successful LSP. It allows for a certain amount of longitudinal analysis with the selected research.

It concentrates on current reality rather than perception through interviewing managers. Compared to surveys or reviews, the practitioner lens provides insight and knowledge at a deeper level of understanding [64].

Thus, this research interviewed an operation manager in the IT department of ABC logistics firm who was willing to contribute their valuable time and share their company’s experiences. The firm has been selected because of its long-term experience in IT application as an SME with no more than USD 20 million in capital revenue. Its primary business projects include all B2B, B2C, and C2C; the success of ABC logistics is attributable to its comprehensive local coverage, an advantage that many international companies do not have.

This research has to use online meetings because of the COVID-19 pandemic. Before conducting interviews, the researcher confirmed the dates and times with the ABC logistics firm manager. The interview data were transcribed from the recording for content analysis purposes and were verified by the respective managers. The interviews were highlighted in the transcripts and thematically coded to construct a category set of a manageable size. These themes do not inherently represent the most common topics across the dataset but rather capture essential elements for the research question. The use of pre-defined, specific decision rules ensures high transparency and objectivity and that the coding instrument is reliable; these rules are indicated by underlining in the transcripts.

3.2. Questions during the Interview

The following questions were asked during the interview of an operations manager from the IT department at ABC logistics company:

• What type of IT adoption does the company have?
• Which IT measures the most productivity? How does it measure productivity?
• How does IT improve the company’s performance?
• Does the use of IT increase the efficiency of transportation and reduce shipping costs?
• How does performance management software help in the firm’s performance?
• Do employees perform tasks better with IT?
• Regarding the financial aspect, does IT increase the company’s profitability?
• Are your customers more satisfied with the company’s service quality due to IT utilization?
• Does the capability of IT in terms of handling tasks efficiently and effectively affect operational performance?
• Does the automation of IT that the company uses affect performance?
• What is the processing time for technology to carry out tasks and do you think the speed affects performance?
• What is the advantage of performance management software?

4. Findings and Discussion

Table 5. Summary of information technology elements contributing to firm performance.

Aspect of IT	Summary of Elements Identified in the Content Analysis
IT Assets	Video conferencing equipment Personal computers Digitalization—100% Adapting to informatization and can quickly adapt to new technologies Performance management software—most effective application
IT Usage	Shipment tracking system Customer service department Subdivision subsystems for all aspects of delivery, billing, etc. Use the system to track performance and quality, retrieve accurate reports Can monitor and forecast performance and quality of our operational performance In terms of delivery, logistics, and billing, overall planning and arrangement will be faster through digitalization Track shipment through the Integrated Logistics Query System (ILQS) Information exchange and task docking between various departments are more convenient Assists in monitoring shipment flow
IT Capability	Invest in resources and capabilities in IT Continue to innovate and reform Focus on the local market instead of the international Continuous improvement and implementation of practical new ideas Use local industrial parks to allow the company to enhance its advantages in the field of information technology and improve operating performance Establish IT department The integration and calculation of all data Conduct training and coaching courses for employees unfamiliar with information technology Additional costs must be invested in the initial stage for research and maintenance Continuously improve when we encounter errors in quality or low productivity levels
Cost Reduction	Significantly reduce paperwork and use digitalization to minimize operations costs in logistics Reduce transportation costs and operating costs to improve financial performance Overall financial performance significantly improves The effectiveness and capability of IT surely can bring cost-efficiency
Service Innovation	Generate faster feedback Build customer confidence in the company Customers can track the logistics situation in real-time Logistics efficiency
Quality Service	It can be more convenient to check the order Can contact customer service at any time, 24/7 Significantly improve customer confidence in the company Additionally, beneficial for our operational basis and customer services
Performance	Significantly improve operational performance Perform quality assessments at the right time and place The company has a significant advantage in IT Long-term increase in profitability Assists in monitoring shipment flow, representing productivity Can avoid loss in operational and financial functions Essential communication that helps reduce time wastage

summarizes the results of the content analysis, namely different aspects of IT dimensions and their impacts as reported by the interviewee. The key findings are detailed in this section.

4.1. Information Technology Is Accessed by Successful LSPs

The results are essential for developing IT constructs and their measurement items scales. This research discovers the three IT attributes the selected LSP applied: IT assets, IT usage, and IT capability. The LSP acknowledges IT assets’ value, usage, and ability to ascertain a competitive advantage. The conceptualization of IT assets and usage is a clear explanation and is valuable but does not guarantee a competitive advantage since they are often imitable and substitutable. Meanwhile, IT capability integrates IT usage and assets to achieve better performance and sustainable competitiveness.

4.1.1. Information Technology

Overall, IT or physical assets such as computers and software are adapted to complete digitalization and the extensive use of digital information. The research of LSP operating in complete digitalization is the most effective application as an IT logistics asset. These confirm the previously advanced argument concerning IT acquisition ownership [9,21,39,52] and implies that physical-assets or tangible IT resources become the IT application that the LSP has acquired for overall logistics operations and activities such as shipment tracking, forecasting performance, and providing services to customers. The LSP regards performance management software as essential resource ownership because it is the most effective application. Success in this ownership requires substantial investment in capital and time, and it is difficult for other LSPs to replicate. However, when IT assets have been accessed by many LSPs, managers must enhance their sustainable competitiveness to their firm IT capability. IT capability is not easy to purchase and becomes the utmost competitive advantage compared to IT assets.

4.1.2. Information Technology Usage

IT usage refers to IT continuance or continued use; long-term usage is critical for firm performance and reveals the feasibility or capability of IT innovation. IT’s impact on performance depends on IT usage because of the different constructs and measurements from the initial use or acceptance. This research shows the LSP IT usage experience as displayed in Table 5. For better performance and competitiveness, the LSP utilizes and engages in IT for all aspects of its routine services and activities, such as delivery, billing, and order. It also uses an Integrated Logistics Query System (ILQS) for shipment tracking, which allows for the digitalization of overall planning, arrangement, and monitoring of shipment flow. It provides subsystems for tracking performance and quality. Being able to exchange information and carry out task docking between various departments improves the convenience of the LSP’s daily operations. This finding is similar to past reports that IT usage determines operational performance and quality, supports more accurate information, reduces costs, and promotes service innovation and productivity [12,48,53]. This implies that the LSP realizes the values of IT application from system usage experience and is satisfied with the IT application after continuance usage.

4.1.3. Information Technology Capability

IT capability is a crucial IT attribute for sustainable competitiveness. The empirical evidence in Table 5 presents the LSP IT capability in IT operations, IT knowledge, IT competencies, and IT management that improves its business performance and competitive advantage. These imply that LSPs gain access to IT capability by investing in IT resource capability and continuously innovating and reconfiguring their resource capability to align with rapidly changing advanced technologies and support the performance of complex logistics operations. This is performed through establishing education and research facilities and hiring expert knowledge. The previous research found that IT capability can enhance business performance and competitive advantage [4,21,39]. For example, the LSP experiences cost reduction, service quality, innovation, and performance, as presented in Table 5. The ability of the LSPs to develop their IT capability requires more time and investment to become a unique resource for the LSP, which is durable and not accessible for other players to imitate.

4.2. The Role and Significance of Information Technology

The relevant information extracted from the interview on the LSP on the role and significance of IT in the LSP is understood in how IT can help LSPS increase quality service: improve customer confidence and satisfaction; service innovation: faster feedback and real-time tracking; reduces costs: minimize operations, transportation costs, and overall performance: increase profitability, productivity, and efficient time consumed. These provide the development of constructs of the LSP’S achievement and their measurement scales. Table 5 displays the LSP’s achievements when applying IT in its business.

Therefore, a company can enhance its performance and competitive advantage through investment in IT. However, the digital era is complex and involves dynamic competition, so not all LSPs can obtain the anticipated cost reduction and sustainable profitability. However, long-term financial indicators (e.g., revenue and profit) represent a competitive advantage. Here, content analysis confirmed that the LSP significantly improved financial performance by reducing transportation, distribution, and operations costs and elevating customer service, innovation, and operational performance. These findings confirm the arguments previously mentioned concerning the role of IT in performance and competitiveness [4]. Practical IT usage and capability enhance the function of IT in significantly improving active measures such as operations costs, efficiency, and financial performance. Thus, rather than IT investment per se, the effectiveness of IT usage and IT capability are positively related to logistics efficiency, long-term increases in profitability, superior performance, and sustained competitiveness.

5. Conclusions

5.1. Theoretical Implications

Despite many IT studies, the research on the logistics of IT attributes and firm competitiveness is scant [61]. The research’s novel contribution is a theoretical model of IT attribute competitiveness for LSPs comprising IT asset, usage, and capability. These contribute to valuable IT concepts and constructs. The findings confirm the model. Thus, the author’s model and results constitute valuable and novel contributions. IT assets are physical assets acquired to perform firm digitalization. It is essential for better performance but as a temporary performance when other LSPs are able to purchase these IT assets. Therefore, LSPs should utilize their IT assets to realize the benefits of IT that turn into profitability and productivity. IT assets and usage are practical if they can be operationalized as IT capabilities in its operations, knowledge, and management. This research conceptualizes IT into IT attributes to advance capabilities to offer strategic IT that is costly for competitiveness.

The findings demonstrate that an LSP undertakes a technological revolution by integrating IT ownership, usage, and capability. These enhance its performance outcomes and sustain its competitiveness in the present era of digitalization, characterized by dynamic and complex competition. Furthermore, the current findings offer empirical evidence that performance is enhanced by IT according to the extent of IT constructs (ownership, usage, and capability) and the scale at which they are assessed.

This article also refines the IT model constructs and their measurement scale. Conceptually, IT includes the tangible assets needed for logistics tasks, such as the system, device, and component infrastructure supporting modern computing. The LSP in the research recognizes IT usage as its ultimate core capability due to a heavy reliance on system utilization in all logistics operations and activities. The results indicated that this high level of IT usage positively impacts the LSP’s performance and competitiveness in the financial, operational, and service innovation arenas.

Notably, IT alone does not guarantee a competitive advantage but instead requires other resource capabilities to be a worthwhile investment. This research suggests that IT capability is a composite of infrastructures such as computers, human capital, and corporate culture and orientation intangibles. Thus, IT capability is embedded in a firm’s knowledge resources, organizational routines, and relational resources, all of which require time and money to develop. It is, therefore, necessary for LSPs to conceptualize IT in terms of capabilities and their positive impacts on performance and sustained competitiveness [21,39]. These findings confirm the argument previously advanced concerning IT capability constructs [55].

5.2. Technological Implications

The identified IT aspects show how IT in general and emerging technologies in particular could address logistics challenges. These technologies include but are not limited to data collecting, data filtering, advanced analysis, recommendations, forecasting and prediction, intelligent communication, resource allocation, and evaluation and measurement. Collectively, these technologies present the potential to enhance logistics efficiencies while reducing human involvement and can allow for an immense improvement in the decision making of logistics firms across all levels. Thus, taking full advantage of these technologies’ capabilities can prepare logistics firms to move toward Logistics 4.0.

As regards specific aspects of IT, blockchains can support the encryption of substantial quantities of valuable information and the improvement and tracking of performance through validating document transactions. IIoT devices can improve operational performance by providing managers with real-time monitoring and data visualization or real-time tracking for demanding customers. Similarly, big data, AI, and advanced analytics would aid the accuracy of reports and forecast through optimizing predictive maintenance, detecting unexpected conditions, and improving last-mile delivery. AR can significantly reduce costs by enabling employee training in freight picking and packing areas. Cloud computing facilitates information exchange and task docking between departments, centralizing analytics, and allowing for expanded computing power.

All told, implementing emerging technologies in the logistics industry and applying them in innovative solutions would enable considerable improvement in rapid shipping, real-time visibility, flexibility, and customer service. The streamlining and digitalizing of many processes and associated improvements in data accuracy will cause logistics firms to be more efficient and productive. The rapid development of these emerging technologies calls for logistics firms to establish the IT infrastructure necessary for them to be adaptable, forward-thinking, and innovative.

5.3. Managerial Implications

The identified IT dimensions provide important insights, particularly for practitioners and managers investing in IT to capitalize on and establish all possible resource capabilities. The findings of this research suggest IT has a beneficial role in firm performance and competitiveness; moreover, the perceived benefits ensure the high adoption of IT among LSPs. However, successful implementation requires commitment from top management in resource allocation, cost, and time to support the development of IT ownership and usage capability. Nonetheless, investing significant attention and effort into IT infrastructure, IT experts, and IT management is worthwhile.

5.4. Limitations

This research has some limitations. It interviewed the operations manager responsible for IT in an advanced LSP with the budget and IT know-how necessary for successful operation in the current competitive market. Therefore, all findings are only limited to the ABC experiences investing in IT. It would be interesting for future studies to investigate different contexts of IT applications in similar or other sectors, industries, and countries. Such research could use a quantitative approach to test the relationships and confirm the model’s generalizability.