Open AccessWhat are the obstacles hindering digital transformation for small and medium enterprise freight logistics service providers? An interpretive structural modeling approach
Author(s) -
Detcharat Sumrit
Publication year - 2021
Publication title -
uncertain supply chain management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.395
H-Index - 16
eISSN - 2291-6830
pISSN - 2291-6822
DOI - 10.5267/j.uscm.2021.4.006
Subject(s) - obstacle , digital transformation , business , service (business) , service provider , process management , industrial organization , computer science , knowledge management , risk analysis (engineering) , marketing , world wide web , political science , law
Digital Transformation (DT) allows logistics service providers (LSPs) to gain competitive advantages by reducing costs, and creating customer experience, innovation and efficiency. This paper proposes a systematic framework to analyse the obstacle factors hindering DT of Thailand small and medium enterprises freight LSPs. First, thirteen obstacles are identified through the extensive literature and validated by a panel of experts. Second, a nine-level hierarchical structure is determined based on Interpretive Structural Modelling to demonstrate the complex interrelationships among obstacle factors. Finally, thirteen obstacles are categorized regarding the driving and dependence power by employing Matrix Impact of Cross Multiplication Applied to Classification approach. The results indicate a lack of digital culture being the most important obstacle hindering DT, followed by lack of support and commitment from top management and lack of risk taking initiative. This finding could help LSPs who aim for DT to take appropriate steps to alleviate obstacles.