Innovative technologies and value creation for LSPs An exploratory study of the Norwegian logistics service industry

Abstract

Logistic service providers (LSP) are exposed to a competitive industry that is constantly evolving. Customer requirements are becoming increasingly challenging and require more of the companies in terms of efficiency and quality of products and services. There is a great potential for innovative technology to help create value for the LSPs so that they can keep up with this development and continue to be competitive. In this study, the authors intend to explore how implementation of innovative technology can create value for logistic service providers, hence the research question: "How does implementation of innovative technologies contribute to value creation for LSPs?". To answer the research question, it was considered necessary to conduct a comparative case study in which the authors conducted interviews with a selection of LSPs in the Norwegian industry. In addition, this research considers the barriers that are present for the implementation of such technology for the various LSPs. To gain a better insight into these barriers, the following sub-question has been asked: "What are the barriers to implementing innovative technologies in the LSP sector?". To best answer the research question, an exploratory study has been applied based on semi-structured interviews with a selection of logistic service providers. In addition two experts in technological development from one of Europe's largest independent research institutes have also been interviewed. Furthermore, the theoretical background consists of relevant literature in the industry for LSPs, as well as an insight into the current technology for this research. The results are based on the findings from the interviewed LSPs and in addition, the experts who have provided answers to both the main research question and the sub-question. The main conclusion for this research is that the implementation of innovative technology can create value for the logistic service providers through what the authors have revealed as three main fields, namely increased efficiency, improved quality of service and sustainable operations. The barriers to the implementation of innovative technology for LSPs are presented through a systematic overview that is categorized using a PESTEL analysis