DETERMINANTS OF THE ADOPTION OF TECHNOLOGICAL INNOVATION BY LOGISTICS SERVICES PROVIDERS IN VIETNAM

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY NGUYEN THI KIM HA DETERMINANTS OF THE ADOPTION OF TECHNOLOGICAL INNOVATION BY LOGISTICS SERVICES PROVIDERS IN VIETNAM MASTER OF BUSINESS ADMINISTRATION THESIS HO CHI MINH CITY - 2011 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY NGUYEN THI KIM HA DETERMINANTS OF THE ADOPTION OF TECHNOLOGICAL INNOVATION BY LOGISTICS SERVICES PROVIDERS IN VIETNAM Major: Business Administration Major Code: 60.34.05 MASTER OF BUSINESS ADMINISTRATION THESIS INSTRUCTOR: PROFESSOR NGUYEN DONG PHONG HO CHI MINH CITY - 2011 ACKNOWLEDGEMENT First of all, I would like to express my heartfelt gratitude to my research supervisor, Professor Nguyen Dong Phong, for his precious guidance, experience sharing, ceaseless encouragement and highly valuable suggestions throughout the course of my research I would like to convey my sincere thanks to Dr Tran Ha Minh Quan, for providing valuable guidance, comment and enthusiastic support My special gratitude is extended to all instructors and staffs at Faculty of Business Administration and Postgraduate Faculty, University of Econimics HoChiMinh City (UEH) for their support and the valuable knowledge during my study in UEH I wish to take this opportunity to express my appreciation to Professor Nguyen Dong Phong and UEH Board of Directors for establishing MBA program in English I also extend my sincere thanks to Lecturer Dang Vinh Phuc for his valuable support and data analysis experience during my research Last but not least, the deepest and most sincere gratitude go to my beloved parents, my sisters and my closest friends for their boundless support, abundant love and encouragement throughout my period of study This is the special encouragement to help me complete this study ABSTRACT The growth of Vietnam’s economy is the effort contributed partially by considerate development of logistics service industry In this industry, technological innovation adoption is one of the most promising and potential premise to increase supply chain visibility and improve process efficiency Vietnam’s logistics service providers should pay attention to adopt more efficient logistics technologies to provide better services for their customers However, first of all, the requirement to identify determinants affecting technological innovation adoption is considered as important goals in any logistics firms This article studies the factors influencing the adoption of technological innovations by logistics service providers in Vietnam Based on the technology–organization–environment (TOE) framework (Tornatzky, M Fleischer, 1990) and outstanding characteristics selected from logistics industry (Chieh-Yu, 2006), six variables (explicitness of technology, accumulation of technology, organizational encouragement, quality of human resource, governmental support and environmental uncertainty) are proposed to help predict innovation adoption Data collected from 150 logistics service providers in Ho Chi Minh city is tested against the proposed research model using linear regression The findings suggest that five of six variables have positive effect on innovation adoption We find that the adoption of technological innovations is significantly influenced by explicitness of technology, accumulation of technology, organizational encouragement, quality of human resource, and environmental uncertainty However, governmental support does not show the significant impact on adoption The results and implications included in our study contribute to an expanded understanding of the determinants that affect innovation adoption in logistics service providers Key words: technological innovation adoption, logistics service providers, technology-organization-environment framework CONTENTS Acknowledgement Abstract Contents List of Tables List of Charts List of Figures CHAPTER1: Introduction 10 1.1 Research background 10 1.2 Research objective 12 1.3 Research scope and research design 12 1.4 Research structure 13 CHAPTER 2: Literature review and research model 14 2.1 Theoretical framework 14 2.1.1 Definition of innovation 14 2.1.2 Innovation adoption in logistics technologies 17 2.1.2.1 Logistics and supply chain management 17 2.1.2.2 Logistic services providers and role of innovation for their services ………………………………………………………… 18 2.1.2.3 Four categories of logistics technologies…………………………19 2.1.3 Determinants of innovation 22 2.2 Research model 25 CHAPTER 3: Methodology 30 3.1 Research process 30 3.2 The measurement scales 31 3.2.1 Adoption of innovation 32 3.2.2 Explicitness of technology 32 3.2.3 Accumulation of technology 32 3.2.4 Organizational encouragement 32 3.2.5 Quality of human resource 33 3.2.6 Governmental support 33 3.2.7 Environmental uncertainty 33 3.3 The pilot research 34 3.4 The main research 35 3.4.1 Sampling 35 3.4.2 Sample size 36 3.4.3 Survey method 36 3.4.4 Data collection and analysis 37 CHAPTER 4: Research result and finding discussion 38 4.1 Descriptive statistics of sanple 38 4.1.1 Final sample 38 4.1.2 Characteristics of sample 39 4.1.3 Descriptive statistics 41 4.2 The construct measurement scale 42 4.2.1 Reliability analysis 42 4.2.2 Exploratory factor analysis 47 4.3 The hypotheses assessment 52 4.3.1 Correlation analysis 53 4.3.2 Overall model fit 54 4.3.3 Multi linear regression analysis 56 4.4 Finding disscussion 61 CHAPTER 5: Conclusion and implications 65 5.1 Concluding remarks 65 5.2 Implications of the research 66 5.3 Recommendation from the research result 67 5.4 Limitations and further research 68 References 70 Appendix Appendix LIST OF FIGURES Figure 2.1 : Process of literature review .14 Figure 2.2: Research model 29 Figure 3.1 : Process of research 31 Figure 4.1 : Process of hypothesis assessment 53 LIST OF CHARTS Chart 4.1 : Standardized distributions of variables…………………………59 Chart 4.2: Regression standardized predicted value……………………… 60 Chart 4.3: Nornal P-P plot of regression stand…………………………… 60 LIST OF TABLES Table 2.1: Previous studies using the TOE framework in investigation of the adoption of technological innovations………………23 Table 4.1 : Case Processing Summary 38 Table 4.2 : Company history 39 Table 4.3 : Number of employee 39 Table 4.4 : Technological innovation implementation for LSPs 40 Table 4.5 : Descriptive statistics 41 Table 4.6 : Cronbach’s alpha of adoption of innovation 43 Table 4.7 : Cronbach’s alpha of explicitness of technology 43 Table 4.8 : Cronbach’s alpha of accumulation of technology 44 Table 4.9 : Cronbach’s alpha of organizational encouragement 44 Table 4.10 : Cronbach’s alpha of quality of human resource 45 Table 4.11 : Cronbach’s alpha of governmental support 46 Table 4.12 : Cronbach’s alpha of environmental uncertainty 46 Table 4.13 : The EFA result of Dependent Variable 47 Table 4.14 : The EFA result of Independent Variables 49 Table 4.15 : The final construct measurement items 51 Table 4.16 : The result of correlation analysis 53 Table 4.17 : The result of overall model fit 55 Table 4.18 : The result of ANOVA 55 Table 4.19 : The result of multi regression analysis 57 Table 4.20 : The conclusion about hypothesis 59 CHAPTER : INTRODUCTION 1.1 RESEARCH BACKGROUND The country economy in the beginning months of 2011 is happing in the background of the world’s economy which has not yet fully escaped from the crisis but been gradually stabilized According to the Asian Development Bank, the Vietnamese economy grew at 6.7 per cent last year and is likely to achieve per cent growth this year Contribution to above figures is shipping and logistics industry Experts have called for the development of the country’s logistics and maritime services to make the economy more competitive and boost global integration For developing countries, revenue from logistics services account for about 15 to 20 percent of GDP For less developed countries, this rate could be over 30 percent It is currently 25 percent for Vietnam (Vietnam Business News) Logistics and supply chain management are seen as the fields in which logistics services providers, by virtue of their particular expertise, are able to offer the most added values to transactions in the freight trade Not only logistics services providers have to arrange for the transport of cargo and facilitate its clearance through customs, they also need to manage their client’s order processing (Ruth Banomyong) Thus, logistics services providers play a significant role in supply chain management According to Vietnam Freight Forwarders Association Viffas , Vietnam has more than 1000 enterprises which provide logistics services, most of which, about 600-700 enterprises, are located in HCM City, and the majority of enterprises have a modest capital of 1-1.5 billion dong Currently, Vietnam ranks the 53rd among 155 countries which have logistics services and ranks the fifth among ASEAN countries 10 hypothesis H2 were supported by the data It shows that higher explicitness of technology can help the transfer of technological knowledge within the organization and, therefore, raise the willingness to adopt technological innovations Besides, logistics firms with rich experiences in the application or adoption of related logistics technologies will have higher willingness to adopt technological innovations Next, in the organizational context, the organizational encouragement and quality of human resource are believed to be the important factors to understand and explain the role of organizational context toward adoption of innovation In order to explore this role, the research put this question into two hypotheses Hypothesis H3: The organization encouragement has a positive effect on technological innovation adoption for Vietnam’s logistics service providers  Supported Hypothesis H4: The quality of human resource has a positive effect on technological innovation adoption for Vietnam’s logistics service providers  Supported The regression analysis shows that organizational encouragement (β =0.344, sig.=0.000) and quality of human resource (β = 0.248, sig =0.000) have positive linear relationship with adoption of innovation Hypothesis H3 and H4 are accepted by regression results Moreover, according to β coefficient, adoption of innovation is considered to be affected by organizational encouragement much more than quality of human resource Organizational encouragement also has the highest weights towards adoption Base on the research results, organizational encouragement and quality of human resource all exhibit the positive influence on adoption Organization can give employees motivation and support to adopt technological innovation The support from organization is not only encouragement but also real rewards High quality of human resources means that employees are capable of innovation in 62 technologies Employees with good skills in learning and applying the innovation will help firms be willing to adopt In conclusion, the more the organizational encouragement and the higher the quality of human resource, the more the likelihood that Vietnam’s logistics service providers will adopt innovation in logistics technology Finally, the environmental context is regarded as factor having the impact on the adoption Hypothesis H5: The government support has a positive effect on technological innovation adoption for Vietnam’s logistics service providers  Not supported The government support does not have a positive effect on technological innovation adoption for Vietnam’s logistics service providers Relating to hypothesis H5, Morash and Lynch (2002) stated that the government plays an important role in drawing up the public policies, in order to encourage private sector performance improvements through trade and inter-modal policies, infrastructure investment and development, creative financing arrangements, tax incentives, safety regulation, public/private partnerships, special programs and projects In may developed countries, the government can encourage and guide logistics service providers to innovate logistics technologies However, in Vietnam’s context, it is possible that government’s role has not been demonstrated significantly in logistics industries The new policies as well as finance and nonfinance support to improve and motivate logistics’ activities are not strong enough to create the influence on adoption capacity This appears to be the reason why governmental support does not feature as a significant influence on the adoption of technological innovations by Vietnam’s logistics industry Hypothesis H6: The environmental uncertainty has a positive effect on technological innovation adoption for Vietnam’s logistics service providers The provision of government support and environmental uncertainty are 63 considered as main factors to verify the question Environmental uncertainty is analyzed to have positive effect on innovation adoption (β = 0.114, sig =0.030) However, the regression also figures out that hypothesis H5 is rejected because significant value (sig =0.543) is higher than allowed level (sig.=0.05) We conclude that only hypothesis H6 in environmental context is supported by data It is a reality that most LSPs in Vietnam are small and medium in size Moreover, in recent years, there is an increasing number of established companies relating to logistics’ activities Besides, the requirements from customer become more complicated and vary so quickly These challenges encourage LSPs to be willing to adopt innovative logistics technologies Thus, it can be concluded that the more the environmental uncertainty, the more likely that Vietnam’s LSP will adopt innovation in logistics technology 64 CHAPTER CONCLUSION AND IMPLICATIONS The influence of technological characteristic, organizational characteristic and environmental characteristic on adoption of technological innovation by logistics service providers in Vietnam’s context is explored in the research The practical and theoretical implications of this research are that it finds out the measurement of each determinant of adoption of innovation as well as the relationships between these factors Finally, in today world business, innovation plays a significant role, especially in logistics service providers Before the firms can draw up and decide the strategies, it is very necessary to understand the role of each determinant on adoption 5.1 Concluding remarks The research begins with theoretical framework showing previous studies about the concepts of innovation adoption, and TOE framework which have impact on innovation adoption The study also identifies and uses two main factors which represent for each characteristic to explore the relationships Next, the research makes a contribution by verifying the construct measurement scales of adoption of innovation and six factors that were adapted from researches conducted in developed countries By using Reliability Analysis and Exploratory Factor Analysis (EFA), the study shows that all the construct measurement scales are satisfied with reliability and validity criteria in Vietnam logistics industries’ context These findings also encourage the future research to use or modify these measurement scales in other industries in Vietnam The study continues to use Correlation Analysis, Overall Model Fit and Regression Analysis in order to examine hypotheses, thereby answering the research questions Apart from exploring the relationship between presented factors, the result helps logistics service providers have overview about the determinants which have impact on innovation adoption Understand the role and 65 effect of all determinants on innovation, the firms might deeply consider taking the suitable factors into their account and using them as meaningful premise to increase their competitive capacity 5.2 Implications of research The objective of this study was to examine the key determinants of adoption of innovation Hence, it is necessary to understand what determines innovation adoption for logistics service providers in Vietnam Based on the TOE theoretical framework, this study developed and validated a research model to examine the influence of three contextual factors on innovation adoption in logistics industry in Vietnam’s context A number of interesting implications from this model were discussed Firstly, the result indicated support for the proposed effects of five of the six variables considered as being important in innovation adoption Five variables (explicitness of technology, accumulation of technology, organizational encouragement, quality of human resource, and environmental uncertainty) were found to be significant determinants of innovation adoption, but one variable (governmental support) was found to be insignificant determinant of innovation adoption Secondly, among the determinants, organizational encouragement was observed to be the most influential factor affecting a firm's innovation adoption Explicitness of technology was the second most influential predictor of innovation adoption In the meanwhile, environmental uncertainty was the least influential determinant in Vietnam’s context The reason might be that most logistics service providers in Vietnam are small and medium in size and have their strength in providing flexible services to customers’ varying requirements, thus environmental uncertainty is to some extent common to them Thirdly, the result highlights governmental support which was explored as substantial influence on innovation adoption in other countries such as China and Taiwan does not have significant impact on adoption in Vietnam It might be 66 explained that the government has not created the leverage for firms to adopt innovation Finally, this study also empirically verifies and supports the applicability of the TOE framework in other industries This framework provides a good starting point for analyzing and considering suitable factors that can positive related to business innovation adoption decisions, thereby creating the competitive capacity among enterprises In conclusion, the findings of this study are valuable and provide several important implications for innovation adoption research and practice 5.3 Recommendation from research result The research results also imply some commendation for logistics service provider toward the adoption of technological innovations The finding presents that organizational encouragement is a key element for an innovation to be adopted and subsequently used in Vietnam’s context In fact, management support has generally emerged as a key variable in past research in innovation Active management involvement and support enables the development of a strategic vision and direction, besides sending appropriate signals to various parts of the organization of the importance of the innovation to sustain a favorable attitude It clearly indicates that the firms should pay much more attention to this important determinant by encouraging the learning, the new technology application as other supports from their employees It is very necessary that the management board has to support and provide the useful solutions for the critical issue the organization is facing to The commitment from organization is the good starting point to increase the willingness to adopt innovations If the organizational commitment was lacking, the willingness to adopt would be difficult to sustain In addition to organizational commitment, the finding also highlights the vital role of quality of human resource The higher quality of human resource is, the more willingness a firm has in order to increase the adoption This implies that 67 the enterprise can enhance their technological innovation capacities by training and educating their employees, thereby increasing the ability in innovation adoption Explicitness and accumulation of technology are also considered as important determinants of adoption This result is also existent in other sectors in previous studies Almost Vietnam’s logistics service providers are small and medium size enterprises, so the implementation of explicitness and accumulation relating to technology requires much effort about resource and capacity of the firms The finding suggests that Vietnam’s logistics service providers should concentrate on the maturity and the openness of integrating innovative technology with the existing systems and processes The firms have to increase the compatibility in their system The firms’ existing information infrastructure and practices need to ensure to be compatible with new application development Besides, the firms should understand that the complexity and incompatibility of existing technology itself may be important barrier to innovation adoption To summarize, the general purpose is to seize the opportunity promised by a new innovation and seek to leverage it for a firm’s competitive position 5.4 Limitation and future research This study has some limitations that also represent opportunities for future research Firstly, the sample is limited on Ho Chi Minh city only , so it may not be sufficient to generalize to the entire population of the logistics service providers in Vietnam Ho Chi Minh is the most developing city in Vietnam, these firms might have more resources and capabilities to be willing to adopt innovation For this reason, the result may be different if the research is conducted at other provinces as well Therefore, the model needs to be examined in generalizing the findings to the entire industry population in other provinces Secondly, the sample frame consist of logistics service providers in Ho Chi Minh without identifying the business types ( e.g state ownership, joint-venture, private, foreign …) Samples from different categories of business might cause 68 different result Thus, verifying the kind of ownership should be considered to modify, validate or refine our model Next, adoption might be regarded as binary variable in other researches; that is firms either have implemented or have not implemented the innovation under the study Using binary variable, the logistics regression is a suitable statistical technique Logistic regression analysis is similar to traditional regression but uses a binary dependent variable and is less stringent in terms of normality assumptions With the classification between adopter and non-adopter in the survey, the study may have other results that indicate the significant difference in key determinants influencing innovation adoption Finally, the hypotheses were derived from the TOE model which concludes several factors The weakness of the TOE framework may be twofold: (1) it may not explicitly point out what are the major constructs in the framework and the variables in each context, and (2) specific determinants identified within the three context may vary across different studies The study 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(2010), “Understanding the Determinants of RFID Adoption in the Manufacturing Industry”, Technological Forecasting and Social Change 77, pp 803-815 72 APPENDIX NGHIÊN CỨU CÁC NHÂN TỐ ẢNH HƯỞNG ĐẾN TIẾP THU CẢI TIẾN CÔNG NGHỆ ĐỐI VỚI CÁC ĐƠN VỊ CUNG CẤP DỊCH VỤ LOGISTICS Ở VIỆT NAM Nghiên cứu nhằm mục đích tìm hiểu đánh giá nhân tố ảnh hưởng đến tiếp thu cải tiến công nghệ đơn vị cung cấp dịch vụ logistics Việt Nam Không có câu trả lời hay sai Mọi ý kiến đánh giá quý Anh/Chị có giá trị nghiên cứu Phần I : Xin Anh/Chị vui lòng chọn lựa chọn sau Thời gian thành lập công ty  Dưới năm Từ đến 10 năm Từ 11 đến 20 năm Trên 20 năm Số lượng nhân viên công ty Dưới 30 người Từ 31 đến 50 người Từ 51 đến 100 người Từ 101 đến 200 người Trên 200 người Công ty Anh/Chị thực cải tiến công nghệ logistics năm qua (có thể chọn nhiều cải tiến)  Công nghệ liệu ( hệ thống barcode, RFID…)  Công nghệ thông tin ( hệ thống EDI, POS, VAN, EOS, XML…)  Công nghệ kho bãi ( hệ thống AS/RS, hệ thống phân loại tự động…)  Công nghệ vận chuyển (như hệ thống định vị toàn cầu GPS, hệ thống thông tin theo vùng địa lý GIS…) Phần II : Xin Anh/Chị cho biết mức độ đồng ý phát biểu đơn vị cung cấp dịch vụ logistics mà Anh/Chị làm việc theo quy ước : 1: Hoàn toàn không đồng ý đến ý 73 5: Hoàn toàn đồng STT Phát biểu Thang Điểm Công ty sẵn sàng cải tiến áp dụng công nghệ Công ty sử dụng cách tối ưu công nghệ cải tiến Dễ dàng tìm thấy tài liệu công nghệ Dễ dàng hiểu công nghệ dựa tài liệu 5 Dễ dàng học cách ứng dụng công nghệ từ tài liệu Không cần thiết có nhiều kinh nghiệm để học công nghệ Công ty áp dụng số công nghệ có liên quan Thực công nghệ không cần đòi hỏi nhiều kinh 5 nghiệm Dễ dàng tích hợp công nghệ vào hệ thống công ty 10 Công ty khuyến khích nhân viên học hỏi công nghệ 11 Công ty tạo điều kiện cho nhân viên học hỏi công nghệ 12 Công ty giúp đỡ nhân viên họ gặp khó khăn việc 5 tiếp thu công nghệ 13 Công ty có sách thưởng xứng đáng cho nhân viên có tính sáng tạo cải tiến công nghệ 14 Nhân viên có khả để sử dụng công nghệ giải vấn đề 15 Nhân viên học công nghệ dễ dàng 16 Nhân viên cung cấp ý tưởng cho công ty 17 Nhân viên chia sẻ kiến thức với người 18 Chính phủ giúp đào tạo nguồn nhân lực với kỹ logisics 19 Chính phủ khuyến khích công ty đề xuất dự án lĩnh 5 vực công nghệ logistics 20 Chính phủ ban hành quy định chặt chẽ lĩnh vực logistics 21 Chính phủ hỗ trợ tài cho phát triển công nghệ logistics 22 Đối thủ cạnh tranh thường cung cấp dịch vụ logistics 23 Yêu cầu khách hàng đa dạng 24 Những cải tiến công nghệ logistics nhanh 25 Yêu cầu khách hàng thay đổi liên tục Họ tên Anh/Chị : Điện thoại liên hệ : Phỏng vấn : lúc …h….ngày …tháng… năm 2011 Chân thành cảm ơn đóng góp ý kiến Anh/Chị ! 74 APPENDIX Total Variance Explained Initial Eigenvalues Component % of Total Varian ce Cumulative % Extraction Sums of Squared Rotation Sums of Squared Loadings Loadings Total % of Cumulative Variance % Total % of Cumulative Variance % 8.587 37.333 37.333 8.587 37.333 37.333 3.290 14.304 14.304 2.707 11.770 49.104 2.707 11.770 49.104 3.135 13.632 27.936 2.173 9.448 58.552 2.173 9.448 58.552 3.084 13.410 41.346 1.606 6.984 65.536 1.606 6.984 65.536 2.989 12.998 54.344 1.432 6.225 71.761 1.432 6.225 71.761 2.889 12.559 66.903 1.006 4.373 76.135 1.006 4.373 76.135 2.123 9.232 76.135 733 3.186 79.321 582 2.530 81.851 539 2.345 84.197 10 471 2.049 86.245 11 457 1.988 88.233 12 370 1.609 89.843 13 346 1.503 91.346 14 311 1.350 92.696 15 276 1.199 93.896 16 241 1.049 94.945 17 218 946 95.891 18 210 911 96.802 19 187 812 97.615 20 179 777 98.392 21 144 624 99.016 22 119 517 99.533 23 107 467 100.000 Extraction Method: Principal Component Analysis 75 76 [...]... will answer the question “What are the key determinants of the adoption of technological innovation by logistics service providers in Vietnam? ” The research will provide some conclusions about the role of these determinants in logistics service providers in Vietnam It helps logistics service providers identify which important factors influencing the adoption, thereby making a contribution to the significant... the main purpose of this paper is to explore determinants of the adoption of technological innovations by logistics services providers in Vietnam 1.2 RESEARCH OBJECTIVES The research objective is to explore the impact of determinants belonging to technology – organization – environment framework on the adoption of technological innovations by logistics service providers in Vietnam In particularly,... processes necessary for a LSP relating to determinants of innovation The theoretical framework, as illustrated in Figure 2.1 , consists of the following three key stages: Figure 2.1 : Process of literature review Definition of Innovation 2.1.1 Innovation Adoption in logistics technologies Determinants of innovation adoption Definition of innovation Organizations must innovate if they are to survive and compete... technological innovation is 11 important for Vietnam s logistics service providers Before logistic services providers can draw up strategies for technological innovations, they should know what factors will influence technological innovations adoption However, there is still a lack of empirical research on the adoption of technological innovations for Vietnam s logistics industry Therefore, the main... Logistic services providers and role of innovation for their services Logistics service provider plays an important role in supply chain management due to an increasing number of firms outsourcing their logistics function The logistics provider sees its function in the supply chain as that of a distributor Its main role is to move goods from one end of the supply chain to the other within the constrains... can track and guide drivers during the transportation of products (Dr Lin,2006) Above technologies play a significant role in logistics industry Hence, LSPs have begun adopting innovations basing on these technologies 21 2.1.3 Determinants of innovation adoption There are several previous studies done on determinants of the adoption of technological innovations One of the frameworks many researchers... Innovation adoption in logistics technologies 2.1.2.1 Logistics and supply chain management Paralleling advances in management theory and information systems, logistics has evolved in scope and influence in the private sector since the mid to the late 1940s In the 1950s and ‘60s , the military was the only organization using the 16 term logistics Both logistics and supply chain management are fascinating... technological innovations for logistics service providers in Taiwan (2006) and China (2008) This article will follow Chieh-Yu model to investigate the influence of main determinants which belong to technological, organizational and environmental characteristics on the adoption of technological innovations by Vietnam s logistics service providers A wide range of factors has been found in the literature Instead of. .. accumulation of logistics technology might impact on technological innovation adoption Hypothesis H1: The explicitness of technology has a positive effect on technological innovation adoption by Vietnam s logistics service providers Hypothesis H2: The accumulation of technology has a positive effect on technological innovation adoption by Vietnam s logistics service providers Organizational characteristics The. .. with the organization’s social system (Damanpour, 1991) Administrative innovation is defined as those that involve an administrative component and affect the organization’s social system This makes it more difficult to measure Since the purpose of this article to analyze the determinants of the adoption of technological innovations by logistics service providers, so it will focus on the technological innovation ... is the most important tool for enterprises to keep their competitive advantage (Kimberly and Evanisko, 1981; Damanpour and Evan, 1984) Nixon (2001) suggests that logistics service providers should... and enterprise information portals Electronic data interchange is identified as inter-company computer-to-computer exchange of business documents in standard formats Recently, extensible markup... characteristics refer to the technologies relevant to the firm This includes the existing technologies, as well as the emerging technologies relevant to the firm (Yu-Min et al, 2010) Technologies can be