The Application of Technology Organization Environment Framework in the Approaches for Smart Warehouse Adoption

Abstract

The role of warehouses in meeting the customer's needs has changed drastically due to changes in the business landscape influenced by technological developments. It also changed the customer purchasing pattern, which is now more demanding in requiring the delivery to arrive in a short time. The requirement is achievable if the organization is willing to invest in technology such as automation, robotics, artificial intelligence, blockchain, and many more to make the warehouse operations more efficient and effective. The widespread and efficient use of these technologies in warehouse operations to increase customer satisfaction is known as a smart warehouse, which is the interest of this study. The study used a quantitative approach by utilizing an online survey platform to collect the information from the selected respondent who operates the warehouse. The finding revealed high awareness among the respondents of the need for smart warehouses to meet the needs of increasingly challenging customers. It is evident through a high understanding among the respondents of the proposed variables in the technology organization environment (TOE) framework. The research found that perceived compatibility, performance expectancy, top management support, firm size, competitive pressure, and regulatory support are critical in influencing the decision by the respondent to implement the smart warehouse. This research provides an early input to relevant parties such as investors, government, and supply chain practitioners to gain more insight into the influencing factors of the smart warehouse adoption. The success of the smart warehouse implementation would help to improve the overall warehouse operation and management of the logistics industry in Malaysia and continue to contribute to the economic growth in Malaysia.