Technological readiness and strategic interactive fit: Dynamic capabilities impacting logistics service competency and performance.

Abstract

In today's business environment, retailers and manufacturers face increasing complexity when it comes to managing the supply chain. As complexity increases, these retailers and manufacturers often look to technology as a tool for assisting in managing supply chain flows. All too often, managers expect a given technology to improve effectiveness with little attention paid to the partner firm's readiness for technological implementation. This dissertation examines the firm readiness for technological implementation in supply chain dyads (retail-manufacturer pairs). Specifically, firm optimism, innovation, discomfort, and insecurity are examined in relation to a firm's logistics service quality and overall market and financial performance. Based upon the theoretical model and empirical results, firm technological readiness matters for both retailers and manufacturers. The level of technological readiness has a significant and direct impact on a manufacturing firm's logistics service quality and a retailing firm's perception of the manufacturer's logistics service quality across nine dimensions. Additionally, firms with tighter strategic interactive fit---technological readiness, technological goals, and technological roles---may experience improvements in logistics service quality. Finally, the relationship between firm technological readiness and market and financial performance is mediated by a firm's logistics service quality.