Adoption of Automatic Warehousing Systems in Logistics Firms: A Technology-Organization-Environment Framework

The adoption of automatic warehousing systems, a type of green technology, has been an emerging trend in the logistics industry. In this study, we develop a conceptual model using a technology-organization-environment framework to investigate the factors which influence logistics firms to adopt green technology. Our model proposes that the adoption of green technology is influenced by perceived advantage, cost, technological turbulence, business partner influence, firm size, firm scope and operational performance. The objective of this study is to identify the conditions, as well as the contributing factors, for the adoption of automatic warehousing systems in logistics firms. Data were collected from 98 firms in China, and structural equation modeling with partial least squares is adopted to analyze the data. The results suggest that high perceived relative advantage, firm size, cost, firm scope, operation performance, technological turbulence and influence of business partners are important factors affecting IT adoption in small businesses. Therefore, decision support should be provided for enterprises from the three aspects of technology, organization and environment to improve the adoption of automatic warehousing systems.