Industry 4.0 digital technologies are becoming indispensable for firms striving to enhance their supply chain capabilities and financial performance, but how these relationships play out in practice remains unclear. To address this issue, this study assesses the relationship between supply chain integration, supply chain agility, and financial performance from a dynamic capability perspective. Further analyses are conducted to establish whether Industry 4.0 digital technologies moderate the association between (a) supply chain integration and supply chain agility and (b) supply chain agility and financial performance. Findings based on the data pertaining to a sample of 274 Swedish manufacturing firms indicate that supply chain agility fully mediates the link between supply chain integration and financial performance. However, while Industry 4.0 digital technologies strengthen the effect of supply chain agility on financial performance, they do not moderate the relationship between supply chain integration and supply chain agility. These findings contribute to the ongoing debate regarding how digital technologies play a role in achieving competitive advantage in interplay with dynamic capabilities related to the supply chain. These findings are relevant for decision-makers, as they address the need for organisational adjustments beyond the mere introduction of Industry 4.0 technologies to fully reap their benefits.

Purpose The purpose is to explore how the configurations resulting from the interplay of last mile logistics practices and firm characteristics are associated with firm performance in an omni-channel context. Design/methodology/approach Drawing on configuration theory (CT), the authors use fuzzy-set qualitative comparative analysis (fsQCA) to analyze data on 72 Swedish omni-channel retailers. Findings Four configurations are identified—store-oriented small and medium-sized enterprises (SME's), online-oriented SME's, large store-oriented retailers and large online-oriented retailers. The results show that while offering a wide range of delivery options is necessary to achieve high performance, it is not sufficient, and that returns and fulfilment should be simultaneously considered. For instance, large high-performers leverage their stores and warehouses for fulfilment and returns in an integrated way irrespective of sales channel-mix. However, SME's appear to focus on fulfilment simplicity with less-costly delivery alternatives, where store-oriented SME's leverage stores and the online-oriented counterparts leverage warehouses. Consequently, the authors develop a configurational taxonomy and discuss a set of recipes which provide insights for researchers and practitioners. Research limitations/implications The study provides a more comprehensive understanding of the pathways to success, and potential pitfalls, in the last mile logistics context. Originality/value This study applies a novel methodology in the field, namely fsQCA, to explore the paths to competitive advantage. It covers a wide range of stages in the LM including back-end fulfilment, delivery and returns. It also provides insight into the logistics practices of both SME's and large omni-channel retailers.

We investigate the link between supply chain (SC) flexibility and responsiveness. Our study contributes to the literature by examining how SC flexibility, as a multi-dimensional construct, affects customer responsiveness and if this relationship is moderated by the innovation orientation of a firm. Using data from 225 Swedish manufacturers, we test our proposed empirical model and find empirical support for the positive effects of the supply chain flexibility dimensions on customer responsiveness. In addition, we found support for the strengthening effect of innovation orientation on the link between internal flexibility and customer responsiveness. The empirical validation of the relationship between the multi-dimensional SC flexibility and customer responsiveness which is moderated by the innovation orientation is an original contribution to both theory and practice.

Purpose

In light of the recent dynamics, this paper aims to explore the last mile (LM) of e-commerce retailers. Two research questions are developed (1) What firm characteristics are critical in LM practices? and (2) How do LM practices differ based on the identified critical firm characteristics?

Design/methodology/approach

Data were collected via 10 interviews with e-commerce executives, as well as a survey on 200 e-commerce firms in different retail sectors in Sweden.

Findings

“Firm Size” and “Sales Channel-Mix” appear to be the top critical firm characteristics in LM practices. While last mile delivery (LMDe) was found to vary more based on sales channel mix than firm size, the opposite occurs for last mile back-end fulfilment (LMBF). Moreover, last mile consumer steering (LMCS) was found to vary only with sales channel-mix. Unexpectedly, primarily store-based retailers capitalize on their stores while offering competitive remote services; they hence compete indirectly with their existing store network.

Originality/value

While most prior work has focused on LMBF and LMDe for strategizing, the consumer-steering aspect seems to have been a missing link. This study develops an integrated framework for LM strategy planning, incorporating LMCS, LMBF and LMDe. New aspects such as the environment, specialization and inventory management are included. The findings provide insights for executives when strategizing, undertaking competition analysis and positioning the firm.

Purpose

This paper aims to examine the relationship between supply integration and firm performance by first, investigating the mediating effects of manufacturing flexibility and mass customization; and second, exploring the moderating role of innovation orientation on the link between internal capabilities and performance.

Design/methodology/approach

Resource orchestration and contingency theories are used to address the mediating and moderating effects. A cross-sectional data set on 242 Swedish manufacturers is used to test for the hypotheses using structural equation modeling.

Findings

The findings provide support for the mediating roles of manufacturing flexibility and mass customization in the relationship between supply integration and firm performance. However, the results point to contrasting contingent effects of innovation orientation. While innovation orientation positively moderates the association between mass customization and firm performance, it shows a negative impact on the link between flexibility and performance.

Research limitations/implications

The study contributes to the literature on the integrative activities with upstream supply chain actors. Specifically, the authors highlight how specific capability configurations comprising of supply integration, manufacturing flexibility and mass customization lead to firm performance. Moreover, the authors provide insights on the contingency role of innovation, especially if firms consider flexibility or customization capabilities.

Originality/value

While the individual impacts of flexibility and customization on performance have been addressed previously, there is a paucity of research on how these two capabilities are integrated with supply integration. Moreover, there is little known regarding the role of innovation orientation on these integrated relationships.

Dynamic capabilities such as flexibility are considered influential in achieving superior performance, especially under uncertain circumstances. Among others, postponement is a well-established concept in operations and supply chain management (OSCM) and has been regarded as a key concept in managing supply and demand while increasing flexibility. This study investigates the effect of postponement on logistics flexibility, and that of the latter on retail firm performance. In addition, the moderating roles of logistics integration and demand uncertainty on these relationships are investigated. The study utilizes a quantitative survey and draws on a sample of 261 retailers in Sweden. Logistics flexibility proves to have a mediating role in the postponement–performance relationship. Furthermore, we provide support for the direct effect that postponement can have on logistics flexibility, and the subsequent effect of logistics flexibility on retail firm performance. We contribute by simultaneously studying postponement and logistics flexibility in the retailing context. We find conditional support for the moderating roles of logistics integration and demand uncertainty. The results show that for medium levels of uncertainty, the positive relationship between postponement and logistics flexibility, as well as logistics flexibility and firm performance, are intensified. From a practical standpoint, the findings underline that in the presence of high or low demand uncertainty, applying postponement may not always be beneficial in achieving logistics flexibility, and subsequently better performance. Moreover, if retailers prioritize logistics integration, they should not always expect superior performance gains from the flexibility benefits of postponement.

This paper develops a robust stochastic optimization model for reverse logistics in closed-loop supply chains. By determining the optimal flow of products using a Chance Constrained Robust Stochastic Programming (CCRSP), it is highlighted how the number of plant openings is influenced by the changes in carbon credit price. To assess the model performance, a set of numerical experiments in different sizes are developed and conducted. The effectiveness of the results are then compared to a proposed Heuristic Hybrid Taguchi PSO (HTPSO) solution algorithm, which underlines the effectiveness of the model. A sensitivity analysis on the carbon emission rate is carried out which underlines the role of Carbon Tax Policy. Finally, a real-lifecase study within the automotive manufacturing industry is carried out by applying the developed robust stochastic model. From a practical standpoint, the model can potentially be employed to meet the carbon credits that are used for handling the different carbon prices and trade scenarios. Also, it provides insights on how tobetter manage uncertainties, as well as to reduce the overall emissions in supply chains.

This article investigates the impact of postponement on logistics flexibility and how logistics flexibility effects performance in a retail setting. Drawing on a representative sample of retailers in Sweden, the paper considers postponement, logistics flexibility, and firm performance in one cohesive study. In addition, the moderating roles of logistics integration and environmental uncertainty on the relationship between logistics flexibility and firm performance were investigated. The results showed that in presence of higher uncertainty, the positive relationship between logistics flexibility and firm performance is intensified. Logistics integration, however, had a different moderating effect based on the type of firm performance measure. In case of strategic performance, logistics flexibility had a positive moderating effect on the relationship between logistics flexibility and firm performance. On the contrary, if financial performance was considered, this moderating effect was negative. The contribution of this study point to the possibility of investing in competencies such as postponement to achieve higher levels of logistics flexibility which, in turn, has a strong positive effect on their performance. Also, finding a fit between environmental contingencies or logistics integration and logistics flexibility focus in relation to performance is highlighted.