International Journal of Physical Distribution & Logistics Management

Chen, Haozhe; Jin, Yao; Huo, Baofeng

2020 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-04-2020-403

Amling, Alan; Daugherty, Patricia J.

2020 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-07-2018-0273

The purpose of this paper is to explore how two mega-trends, e-commerce and urbanization, have the potential to reshape logistics practices around the world. Primary focus is on how Chinese business practices and logistics innovations are increasingly relevant to the USA and other western countries.Design/methodology/approachExperience-based thought piece focusing on specific Chinese logistics innovations centering on speed, adaptability and new business models.FindingsThe Chinese economy has played a key role in providing support and enabling logistics innovations in China. Key enablers include the ubiquitous connectivity and applications availability, the dynamic low-cost labor environment and government support for the Chinese logistics industry.Research limitations/implicationsThis study suggests new areas for research.Practical implicationsThis study provides insights into the potential value associated with adopting innovative Chinese logistics practices.Social implicationsThis study provides suggested areas of attention to help focus on logistics operations on key societal trends.Originality/valueOur paper provides insights into the potential value associated with adopting innovative Chinese logistics practices. We believe this represents a significant contribution as little coverage of the topics have been noted to date in leading logistics/supply chain journals.

Falcone, Ellie; Kent, John; Fugate, Brian

2020 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-08-2018-0306

Supply chain management literature recognizes that interorganizational networks provide resources that convey critical benefits, such as capital, competitive advantage and efficient strategy implementation. The purpose of this paper is to leverage network theory and identify technological innovations as the antecedents for organizations to achieve stronger interorganizational networks. Specifically, this paper investigates how supply chain technologies of its logistics affiliate, Cainiao Network (CN), affect Alibaba Group’s three fundamental network mechanisms reachability, richness and receptivity and how interorganizational networks subsequently drive Alibaba Group’s performance.Design/methodology/approachA case study approach was chosen as a methodology to develop an in-depth understanding of the proposed innovations-network-performance framework.FindingsResults indicate that innovative technologies positively lead to network reachability, richness and receptivity. Stronger interorganizational networks directly lead to higher performance. In addition, CN is identified as a unique innovative business model.Originality/valueThe key contribution of this research is that it investigates Alibaba Group’s performance from a network and innovation perspective. It identifies technological innovations as a key driver for stronger interorganizational networks. Furthermore, three network mechanisms are introduced and investigated as the antecedents of organizational performance. This research also provides a comprehensive description of Alibaba Group and CN.

Giuffrida, Maria; Mangiaracina, Riccardo; Perego, Alessandro; Tumino, Angela

2020 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-08-2018-0311

The purpose of this paper is to support companies’ risk-informed selection of a logistics solution to operate in China via cross-border e-commerce (CBEC).Design/methodology/approachDecision theory is applied to the recent field of CBEC. This theoretic setup involves a decision maker who must choose among a set of alternatives, whose consequences depend on uncertain factors (Savage, 1954). The study develops an activity-based model to calculate logistics costs in a deterministic setting. Simulations and probabilistic sensitivity analyses are later performed to evaluate the impact of uncertainty.FindingsThere are four main solutions to enter China, determined by the adopted international transport mean and the presence of a local warehouse. The most important risk factors affecting the choice of the logistics solution are change of CBEC regulation, product value, expected service level and demand level.Originality/valueFrom a theoretical perspective, this study improves CBEC literature, so far characterised by descriptive papers, often lacking industry focus or empirical exploration. It also provides new application opportunities for decision theory, whereas previous contributions have proposed different theoretical approaches, such as transaction cost or institutional theory. From a practical viewpoint, the paper is the first to compare the costs of the main logistics solutions to sell online to China, by taking uncertainty into account. The results can be used to better understand the differences among solutions and identify the most critical parameters. Finally, this research provides some observations for policy implementation.