Integrating logistics and information technology strategies for sustainable competitive advantage

Abstract

Purpose

To investigate the integration process of retailer's information technology strategy within logistics strategy and to find out those aspects of the retailer's distribution and operational performance that are mostly influenced via that integration.

Design/methodology/approach

A qualitative case study methodology is used where the managers of the major domestic and multinational firms operating in the Greek food multiple retail market are interviewed. The integration process of the information technology and logistics strategies of these retail firms is linked to their relevant distribution and operational functions. Secondary data for the Greek food multiple retail sector are also employed.

Findings

The findings show that logistics and information technology strategies are developed and implemented in a parallel way by both local and multinational food multiple retailers in Greece. A financial ratio analysis carried out for these firms, suggests that multinational firms possess greater operational efficiency at both secondary and in‐store distribution operations compared to domestic firms, something that is largely attributed to their integration of logistics and information technology operations. Multinational firms' superior operational efficiency is also resulting in a higher profitability performance.

Originality/value

The paper proposes that a successful integration process between the logistics and the information technology functions seems to confer a competitive advantage upon retailers' distribution operations. The paper will assist retail managers and researchers responsible for the development of logistics and information technology strategies to understand that fully absorbed information technology and logistics strategies and operations will be rewarded with superior pecuniary and operational efficiency benefits.

Citation

Bourlakis, M. and Bourlakis, C. (2006), "Integrating logistics and information technology strategies for sustainable competitive advantage", Journal of Enterprise Information Management, Vol. 19 No. 4, pp. 389-402. https://doi.org/10.1108/17410390610678313