Integration of logistics and cloud computing service providers: Cost and green benefits in the Chinese context

• Published in: Transportation research. Part E, Logistics and transportation review Vol. 70; pp. 86 - 98
• Main Authors: Subramanian, Nachiappan, Abdulrahman, Muhammad D., Zhou, Xiaolai
• Format: Journal Article
• Language: English
• Published: Exeter Elsevier India Pvt Ltd 01.10.2014; Elsevier Sequoia S.A
• Subjects: China; Cloud computing; Cost benefit analysis; Cost engineering; Diffusion theory; Freight forwarding; Gain; Innovation diffusion; Logistics; Logistics services; Small & medium sized enterprises-SME; Studies; Sustainability; Technology adoption; Transportation; Transportation problem (Operations research); China; Technology adoption; Cloud computing; Innovation diffusion; China; Logistics services
• ISSN: 1366-5545; 1878-5794
• DOI: 10.1016/j.tre.2014.06.015

•We develop a conceptual model for examining cloud and logistics services providers’ integration.•We analyse the benefits of cloud and logistics services providers’ integration.•We evaluates the perceptions of a new technology before its implementation within a sector.•Chinese logistics firms are attracted to cloud computing for cost savings and green benefits.•Chinese logistics firms are witnessing significant empty mileage travels. Drawing on the innovation diffusion theory and data from 236 Chinese small and medium-sized logistics service providers (SMLSPs), this study developed and tested a conceptual model for empirically examining the green and cost benefits of integration between cloud service providers and SMLSPs in the Chinese context. The study posits that the perceived green and cost benefits drive the need for cloud computing (CC) adoption by Chinese SMLSPs. The results indicate that Chinese SMLSPs are attracted by CC to reduce cost in a short term and to gain sustainability through green benefits in a long term. The study extends CC capabilities and enterprise integration literature in the context of logistics services.