The impact of information technology on the financial performance of third‐party logistics firms in China
Abstract
Purpose
The paper aims to examine the impact of information technology (IT) on the financial performance of third‐party logistics (3PL) firms in China.
Design/methodology/approach
A questionnaire‐based mail survey was conducted in mainland China. Path analysis and spline regressions were used to model the relationship between IT and financial performance.
Findings
This study found that IT can significantly improve 3PL firms’ financial performance and there are complementarity and plateau effects of influencing financial performance between IT advantage and executives’ involvement in both IT and business strategy planning.
Research limitations/implications
The modeled relationship between IT and competitive advantages may not hold in different cultural environments and industrial settings. The sample size was small. Perceptual performance data were used.
Practical implications
To achieve better financial performance, it is essential for 3PL firms to sense strategically the importance of IT and commit sufficient managerial efforts and resources to achieve IT competency. In addition, IT executives should involve themselves in strategic business planning to better understand business strategies.
Originality/value
The results of this study – which constitutes the first to investigate IT in the 3PL industry in China – provide empirical evidence and a better description of the relationship between IT and financial performance. The findings provide valuable managerial guidance and insights for logistics managers.
Keywords
Citation
Wang, Q., Lai, F. and Zhao, X. (2008), "The impact of information technology on the financial performance of third‐party logistics firms in China", Supply Chain Management, Vol. 13 No. 2, pp. 138-150. https://doi.org/10.1108/13598540810860976
Publisher
:Emerald Group Publishing Limited
Copyright © 2008, Emerald Group Publishing Limited