Sebastian Brockhaus, Daniel Taylor, A. Michael Knemeyer and Paul R. Murphy
This research explores the concept of omnichannel fulfillment steering (OFS) and demonstrates how retailers can influence a consumer’s fulfillment decisions through commonly used…
Abstract
Purpose
This research explores the concept of omnichannel fulfillment steering (OFS) and demonstrates how retailers can influence a consumer’s fulfillment decisions through commonly used financial incentives such as discounts, credits and the opportunity to avoid home delivery fees.
Design/methodology/approach
We present insights from two theoretically grounded experiments to examine how different types of financial incentives can be used by omnichannel retailers to steer consumers from home delivery toward three alternative order fulfillment methods (AOFM) – buy-online-pickup-in-store, curbside-pickup and ship-to-locker.
Findings
Our analysis suggests that an opportunity to avoid shipping fees (penalty-avoidance) is a more effective OFS nudge than offering discounts or store credits (rewards). No difference was observed between offering discounts or credits as steering mechanisms; further, no omnichannel steering benefits were observed among the tested AOFMs. Collectively, these findings provide possible justification for retailers’ prioritization of credits to foster customer in-store visits, thus encouraging greater customer engagement and facilitating cross-selling opportunities. Finally, we uncover a penalty-avoidance endowment effect for “free shipping” of purchases over the current industry-standard free shipping threshold.
Practical implications
Retailers might prioritize store credits over discounts as nudges to steer customers toward an AOFM, with buy-online-pickup-in-store offering the greatest benefits for most retailers. Furthermore, using penalty-avoidance OFS incentives over a typical free shipping threshold may increase AOFM selection rates but engender adverse customer reactions.
Originality/value
Advancing the concept of OFS, this study directly informs retailers’ omnichannel incentive programs to nudge customers back into the store. Countering intertemporal choice theory, we could not demonstrate that delayed incentives are less effective than immediate ones. Based on prospect theory, we identify a free shipping endowment effect at a specific reference point along a purchase amount continuum.
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Aysu Göçer, Sebastian Brockhaus, Stanley E. Fawcett, Ceren Altuntas Vural and A. Michael Knemeyer
Sustainability continues to be put forth as a strategic priority. However, sustainability efforts are often deemphasized for short-term profitability. This study explores the…
Abstract
Purpose
Sustainability continues to be put forth as a strategic priority. However, sustainability efforts are often deemphasized for short-term profitability. This study explores the nuances in managerial decision-making related to adopting sustainability initiatives within food supply chains in an emerging economy. We identify a complex interaction between sustainability efforts and risk mitigation. We derive a model to explain conflicting company goals, managerial decisions and system design.
Design/methodology/approach
We followed an exploratory research design with an inductive approach. We analyzed data from semi-structured interviews with 29 companies representing different tiers in Turkish food supply chains. We refined and validated the interview findings through a focus group with nine senior managers. We conducted open, focused and theoretical coding in an iterative and reflective manner to analyze the data and derive our results.
Findings
From the data, three themes emerged, indicating that managers are pursuing different, often conflicting, goals concerning value creation, risk management and sustainability performance. Managers identified and commented on new risks brought on by sustainability initiatives. These sustainability-induced risks were seen as a threat to operational performance, a driver of increased costs and a negative impact on product quality and delivery performance. Trade-offs across operating, sustainability and risk management systems create transformational tension that confounds the sustainability adoption decision-making process.
Originality/value
The data from the study was contrasted with a theoretical framework derived from systems theory, goal-setting theory of motivation and the theory of planned behavior. We identified four distinct decision paths that managers pursue. Increased awareness of transformational tension and how it influences managerial decision-making can enhance strategic sustainability system design and initiative success.
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Marzenna Cichosz, Maria Aluchna, Ewa Sońta-Drączkowska and A. Michael Knemeyer
Organizational pursuit of sustainability in multi-tier supply chain systems operating in unpredictable environments is often associated with the emergence of paradoxical tensions…
Abstract
Purpose
Organizational pursuit of sustainability in multi-tier supply chain systems operating in unpredictable environments is often associated with the emergence of paradoxical tensions. This study aims to summarize and synthesize existing literature on managing various paradoxical tensions in supply chains (i.e. sourcing, making, delivering and reverse logistics) as organizations pursue sustainability transformation. It also strives to motivate new academic research inquiry into developing responses to sustainability paradoxes.
Design/methodology/approach
The study draws on a systematic literature review of 73 papers from the Web of Science database selected at the intersection of paradox, sustainability and logistics/ supply chain management (SCM). Applying paradox theory as a guiding lens, we investigate organizational strategies, practices and capabilities described in the literature to navigate sustainability paradoxes in supply chains.
Findings
The results assert that the success of sustainability transformation will depend on an organizational ability to recognize, accept and navigate paradoxical tensions in one's supply chain. This requires developing the dynamic capabilities of paradoxical leadership, strategic agility, innovativeness, collaboration with contextualization and governance. Successful sustainability transformation is not reliant on finding an optimal, final design but rather the continuous balancing of tensions inherent within or across the organizations that make up one's supply chain.
Practical implications
The research offers an integrative conceptual framework to guide organizations in navigating sustainability paradoxes in supply chains, embracing strategic, practice and capability levels. It also outlines opportunities for future research inquiries connected to this framework that are needed to build additional insight for addressing paradoxical tensions related to the pursuit of sustainable supply chain management.
Originality/value
This study takes a dynamic capabilities approach to navigating paradoxical tensions in pursuit of sustainable supply chain management.
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Sini Laari, Oskari Rintala, Juuso Töyli, Tomi Solakivi and Lauri Ojala
This paper aims to investigate how firms can enhance their resilience in response to the disruptions caused by the COVID-19 pandemic. Specifically, the study focuses on assessing…
Abstract
Purpose
This paper aims to investigate how firms can enhance their resilience in response to the disruptions caused by the COVID-19 pandemic. Specifically, the study focuses on assessing responsiveness as an antecedent and logistics outsourcing as a boundary condition to resilience.
Design/methodology/approach
Survey data collected from 286 manufacturing firms in Finland during 2021 are analysed to examine the relationships between supply chain responsiveness, logistics outsourcing and resilience.
Findings
Firm responsiveness is found to improve resilience, while an increasing level of logistics outsourcing weakens this relationship. Surprisingly, geographic dispersion does not significantly affect supply chain responsiveness.
Research limitations/implications
Limitations of the study include the focus on manufacturing firms in Finland and the reliance on survey data. Future research could explore additional factors influencing resilience and consider a broader range of industries and geographical regions.
Practical implications
The findings offer valuable insights for managers seeking to enhance their firms’ resilience in the face of disruptions. By understanding the importance of responsiveness and the potential drawbacks of excessive logistics outsourcing, managers can make informed decisions to improve their firms’ ability to cope with unexpected challenges.
Originality/value
This research contributes to the understanding of resilience in supply chain disruptions by addressing fundamental questions related to efficiency, responsiveness, control and complexity. By examining the interplay between responsiveness, logistics outsourcing and resilience, the study enriches the understanding of how firms can effectively navigate unexpected challenges.
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Haley Paluzzi, Haozhe Chen, Michael Howe, Patricia J. Daugherty and Travis Tokar
This paper aims to introduce the concept of consumer impatience, empirically explore how it relates to time-based logistics performance (delivery speed and delivery timeliness…
Abstract
Purpose
This paper aims to introduce the concept of consumer impatience, empirically explore how it relates to time-based logistics performance (delivery speed and delivery timeliness) and discuss its impact on consumer satisfaction. This research argues that gaining insights related to delivery performance from a consumer’s perspective can help the development of more effective time-based logistics strategies for e-commerce home deliveries.
Design/methodology/approach
Hypotheses in this study are developed using attribution theory and tested with empirical data collected through an online behavioral consumer experiment. Middle-range theorizing is used to develop an understanding of the mechanisms that impact the relationship between time-based logistics performance and consumer satisfaction.
Findings
Findings indicate that consumer impatience with delivery speed and delivery timeliness play an essential role in the relationship between time-based delivery performance and consumer satisfaction. Issues with delivery timeliness are shown to have a more negative impact on consumer satisfaction than issues with delivery speed, while delivery communication is demonstrated to have a positive relationship with consumer satisfaction.
Originality/value
This empirical study adds to existing time-based competition literature by taking a consumer-centric perspective and bringing a largely overlooked but critical concept – consumer impatience – into the logistics and supply chain management setting. Middle-range theorizing allows for a conceptualized understanding of consumers’ delivery experiences that can help companies develop proactive actions in their time-based competition initiatives.
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Jianliang Hao, Robert Glenn Richey Jr, Tyler R. Morgan and Ian M. Slazinik
Researchers have examined the influence of the factors on reducing return rates in retailing over the years. However, the returns experience is often an overlooked way to drive…
Abstract
Purpose
Researchers have examined the influence of the factors on reducing return rates in retailing over the years. However, the returns experience is often an overlooked way to drive customer engagement and repeat sales in the now ubiquitous omnichannel setting. The focus on returns prevention in existing research overshadows management’s need to understand better the comprehensive mechanics linking the customer in-store return experience with their repurchase actions. Recognizing the need to bridge different stages of the returns management process, this research aims to explore the facilitators and barriers of in-store return activities.
Design/methodology/approach
Analysis of customer corporate data from 5,339 returns at the retail level provides insights from the customer return experience. Expanding our theoretical understanding, a deductive research approach then examines how those factors impact customer repurchase intentions both online and at brick-and-mortar stores. Stage two of the study employs a scenario-based role-playing experiment with consumer respondents to test hypotheses derived from signaling theory and justice theory.
Findings
Results find that returns policy and loyalty program capabilities are essential in creating a positive customer in-store experience. Moreover, a return experience enhanced by frontline employee service can retain existing shoppers and drive additional store traffic, further stimulating retailer sales.
Originality/value
These findings refine our understanding of returns management in evolving omnichannel retailing and offer practical insights for retailers to manage customer relationships through in-store returns.
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Wesley Friske, Gawon Yun and Koray Ozpolat
The purpose of this study is to examine how national logistics performance facilitates new venture creation and innovation. The authors propose that national logistics performance…
Abstract
Purpose
The purpose of this study is to examine how national logistics performance facilitates new venture creation and innovation. The authors propose that national logistics performance is a key mediator in a national system of entrepreneurship.
Design/methodology/approach
The sample for this study combines secondary data from multiple sources with survey data from the Global Entrepreneurship Monitor to create an unbalanced panel spanning 84 countries across five points in time. The authors test for the mediating role of national logistics performance using a Monte Carlo method.
Findings
The results of mediation analysis confirm that national logistics performance is an important causal link in a national system of entrepreneurship. High-performing logistics networks at the national level help entrepreneurs launch new ventures and innovate by linking economic conditions and formal regulatory institutions with productive entrepreneurship.
Originality/value
This study identifies logistics as an overlooked but important component of a national system of entrepreneurship. For policymakers, this study identifies critical linkages among economic conditions, regulatory institutions, logistics and entrepreneurship. The study also has practical implications for entrepreneurs.