Leveraging Last Mile Logistics for Customer Responsiveness in Omni-Channel Retailing: The Contingency Effects of Environmental Uncertainty

This study investigates how last mile logistics, comprising of last mile back-end fulfilment (LMBF) and delivery (LMD), influences customer responsiveness (CR). Drawing on resource orchestration theory, we conceptualize these last mile components and empirically examine their individual and combined effects on CR within Swedish omni-channel retailers. Polynomial regression analysis reveals that both LMBF and LMD positively influence CR. While their relationship appears complementary, their combined effect demonstrates diminishing returns beyond a certain threshold. By integrating contingency theory, we further explore how environmental factors moderate these relationships. In dynamic and complex environments, both LMBF and LMD are critical for enhancing CR. This implies that in unpredictable markets, retailers can leverage both components for improved responsiveness. Our findings also indicate that both LMD and LMBF are necessary for improved CR in environments with low munificence. In such settings, the combination of LMBF and LMD is essential for retailers seeking to gain a competitive edge.