Enabling digital service innovation in logistics and supply chains: a framework from an institutional perspective

Purpose This study investigates the organisational and institutional factors that influence the successful implementation of digital service innovation (DSI) in logistics organisations and operations. Specifically, it seeks to develop an understanding of the mechanisms of how specific key enablers and barriers within Logistics and Supply Chain Management (L&SCM) organisations impact the success of DSI initiatives. Design/methodology/approach An inductive, theory-informed qualitative study using grounded-theory-inspired coding techniques was used to analyse how organisational factors influence DSI in L&SCM. Qualitative interviews were conducted to collect data from 25 participants. Iterative constant comparison was used to compare emerging codes to ensure high consistency in the analysis process. Then, a focus group workshop was used to facilitate a participatory analysis, which helped in an in-depth exploration of DSI in the logistics context. The focus group tool helped develop the framework by categorising the factors that emerged from the interview analysis into core themes based on the interplay between enablers and inhibitors. Findings A framework emerged for facilitating DSI in L&SCM operations, which consists of four interconnected core themes: Organisational Readiness, Technological Capability, Collaboration and Organisational Adaptability. These core themes work together to enable DSI, which is encased by certain enablers and inhibitors. This study shows that although resistance to change, legacy systems and financial constraints create significant barriers to the implementation of DSI in logistics organisations, key enablers such as leadership commitment, strong technological infrastructure, collaboration with external partners and active employee engagement play a crucial role in addressing these obstacles and driving successful digital innovation. Originality/value This study makes an original contribution by using an inductive, theory-informed qualitative study using grounded-theory-inspired coding techniques to explain unique institutional factors of DSI adoption in the logistics context. The study shows the dynamic interplay of organisational practices and dimensions of technological structures that influence DSI implementation through the involvement of industry professionals in the participatory analysis method. It presents a framework developed directly from the research data, offering a well-grounded perspective on what drives successful DSI implementation. It also shows interesting perceptions, not only for academics but also for industry professionals and managers who are trying to implement DSI successfully, by mitigating the challenges that logistics organisations can face.