ICT innovation in small logistics service providers: some policy implications

The adoption of information and communication technology (ICT) is one of the most critical areas of innovation for third-party logistics service providers (3PLs). ICT is seen as tool for achieve service differentiation and improving connectivity with other supply chain partner. Nevertheless, many logistics service companies had failed to use ICT to gain competitive advantage as the implementation of technology innovation is a challenging and risky process involving huge resources. In the context of small 3PLs, technology adoption is particularly critical and ICT investments need to be carefully planned. The objective of this chapter is to investigate the role of ICT innovation in small 3PLs through a case study analysis conducted in the Italian logistics service market. On the basis of findings deriving from the case investigation, a number of policy implications aimed at sustain ICT innovation in small logistics companies are identified and discussed together with future research directions.