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Diffusion of innovations in service networks - Examining innovative logistics technologies from an agency perspective
Type
conference paper
Date Issued
2019-06
Author(s)
Hofmann, Erik
Abstract
Purpose
This research provides a systematic analysis about the governance mechanisms for promoting the transfer and diffusion (together referred to as “distribution”) of technological innovations along logistics service supply chains (LSSCs) from a principal-agent perspective.
Design/methodology/approach
Drawing on agency theory and innovation diffusion theory (IDT), the explorative research approach is based on a single case study. 19 representatives from three levels of the LSSC (third-party logistics provider (3PL), logistics intermediaries and drivers) are included. Besides the case-related investigations, interviewees were bundled into a focus panel for examining general technology experiences within LSSCs.
Findings
The findings illustrate that technology distribution should be guided whenever the technology implies interaction with the consignee and/or the driver. Suited mechanisms to reduce inappropriate handling due to information asymmetries are ownership, data transparency, and feedback and reputation systems. The first one allows for self-selection solutions, while the latter two can be designed as control or incentive systems.
Research limitations/implications
The paper is limited by its qualitative research approach; only one LSSC with a specific technological innovation is included. Thus, findings cannot easily be generalized.
Practical implications
The derived decision tree helps practitioners to locate their technological innovations and evaluate the possibilities for governing distribution processes. As all levels of the LSSC are examined (even drivers), the results are on a very concrete application level.
Original/value
This paper is the first contribution that investigates technology distribution for the whole vertical LSSC – from 3PL down to drivers. Thereby, a principal-agent cascade is derived that advances the application of agency theory in logistics and supply chain management (SCM) research.
This research provides a systematic analysis about the governance mechanisms for promoting the transfer and diffusion (together referred to as “distribution”) of technological innovations along logistics service supply chains (LSSCs) from a principal-agent perspective.
Design/methodology/approach
Drawing on agency theory and innovation diffusion theory (IDT), the explorative research approach is based on a single case study. 19 representatives from three levels of the LSSC (third-party logistics provider (3PL), logistics intermediaries and drivers) are included. Besides the case-related investigations, interviewees were bundled into a focus panel for examining general technology experiences within LSSCs.
Findings
The findings illustrate that technology distribution should be guided whenever the technology implies interaction with the consignee and/or the driver. Suited mechanisms to reduce inappropriate handling due to information asymmetries are ownership, data transparency, and feedback and reputation systems. The first one allows for self-selection solutions, while the latter two can be designed as control or incentive systems.
Research limitations/implications
The paper is limited by its qualitative research approach; only one LSSC with a specific technological innovation is included. Thus, findings cannot easily be generalized.
Practical implications
The derived decision tree helps practitioners to locate their technological innovations and evaluate the possibilities for governing distribution processes. As all levels of the LSSC are examined (even drivers), the results are on a very concrete application level.
Original/value
This paper is the first contribution that investigates technology distribution for the whole vertical LSSC – from 3PL down to drivers. Thereby, a principal-agent cascade is derived that advances the application of agency theory in logistics and supply chain management (SCM) research.
Language
English
HSG Classification
contribution to scientific community
Book title
Supply Chain Designs and Sustainable Development of Societies
Publisher
NOFOMA
Publisher place
Oslo
Start page
307
End page
322
Pages
16
Event Title
NOFOMA 2019: The 31st annual conference of The Nordic Logistics Research Network (NOFOMA)
Event Location
Oslo, Norway
Event Date
June 11-14, 2019
Subject(s)
Division(s)
Eprints ID
257181