Smart logistics diffusion strategies amongst supply chain networks in emerging markets: a case of Nigeria's micro/SMEs 3PLs

This study investigates the mechanism influencing Information and Communication Technology (ICT) diffusion in the Nigerian transport/logistics industry, necessitated by the need to improve logistics performance in the region. The study involved a mixed-method approach, divided into four phases: scoping study; questionnaire survey; multiple case studies; and focus group discussion/in-depth expert interviews. The approach was required to respond to the following specific objectives of the study, including to (i) unpack diverse ranges of both internal and external factors influencing ICT diffusion in the industry. (ii) Empirically capture the causal interrelationships of the relevant factors influencing ICT diffusion in the industry, using evidence from the activities of the local small and medium third-party logistics operators (3PL SMEs). (iii) Compare the influences of firm and structure on the ICT adoption process, and, in turn, logistics performance among the local 3PL SMEs, and (iv) identify policy initiatives required to improve ICT diffusion in the industry. The outcomes of the study suggest as follows: (i) there are varied ranges of context-specific factors influencing ICT diffusion in the Nigerian transport and logistics industry. (ii) Amongst the main barriers include lack of facilitating conditions and limited scope of business, while the main driver was consumer readiness. The three constructs appear interdependent. (iii) The local logistics operators were motivated differently in terms of the extent of ICT adoption. (iv) There are limited policy-driven initiatives, as well as dysfunctional institutional framework stimulating ICT diffusion in the industry. These outcomes lead to making the following recommendations: (i) The logistics practitioners in the region should concentrate on developing their internal resources, particularly technical skills/expertise, as it represents their primary source of sustaining their competitive advantage. (ii) Relevant policy initiatives (e.g., the national IT policy) require revision to enhance their sectorial applications in the industry, and (iii) The study also recommends significant overhaul/reorientation of the local logistics system, particularly the institutional framework. These relate to the dampening effects (barriers) the lack of a functional institutional framework has posed on the efficient coordination of the local logistics system. The outcomes of the study suggest the need for continuous engagement of the relevant stakeholders in addressing some of the critical issues raised in this study, mainly as represented in the developed ICT diffusion framework. This approach is envisaged to help address issues relating to the ever-increasing complex and dynamic nature of the modern smart logistics system. For the practitioners, the contingency management approach is mostly recommended based on the unstable nature of the local economy and logistics market in particular. Overall, the research findings may help lay the foundation for the pragmatic resolution of ICT diffusion challenges in the local transport and logistics industry.