A configurational approach to last mile logistics practices and omni-channel firm characteristics for competitive advantage: a fuzzy-set qualitative comparative analysis

Purpose – The purpose is to explore how the configurations resulting from the interplay of last mile logistics practices and firm characteristics are associated with firm performance in an omni-channel context. Design/methodology/approach – Drawing on configuration theory (CT), the authors use fuzzy-set qualitative comparative analysis (fsQCA) to analyze data on 72 Swedish omni-channel retailers. Findings – Four configurations are identified—store-oriented small and medium-sized enterprises (SME’s), online-oriented SME’s, large store-oriented retailers and large online-oriented retailers. The results show that while offering a wide range of delivery options is necessary to achieve high performance, it is not sufficient, and that returns and fulfilment should be simultaneously considered. For instance, large high-performers leverage their stores and warehouses for fulfilment and returns in an integrated way irrespective of sales channel-mix. However, SME’s appear to focus on fulfilment simplicity with less-costly delivery alternatives, where store- oriented SME’s leverage stores and the online-oriented counterparts leverage warehouses. Consequently, the authors develop a configurational taxonomy and discuss a set of recipes which provide insights for researchers and practitioners. Research limitations/implications – The study provides a more comprehensive understanding of the pathways to success, and potential pitfalls, in the last mile logistics context.Originality/value – This study applies a novel methodology in the field, namely fsQCA, to explore the paths to competitive advantage. It covers a wide range of stages in the LM including back-end fulfilment, delivery and returns. It also provides insight into the logistics practices of both SME’s and large omni-channel retailers.Funding: European Regional Development Fund [20201932]