For business-to-business (B2B) service providers, securing loyal customers—a critical asset for any firm—remains challenging. This is especially true for B2B logistics, a major sector of the U.S. economy, which has experienced major stress amid de-globalization, COVID-19, and the move to online marketplaces. In a timely study responding to the affordances of the digital age, HKUST’s Zhitao Yin and colleagues show how high-quality information, a key resource generated from digitalization, can boost customer loyalty for B2B logistics firms.

“Our study shifts the focus of scholarly conversation,” say the researchers, “employing a customer needs fulfillment perspective to understand how value is created and captured in B2B logistics relationships.” Specifically, they ask how the quality of tracking information—obtained using emerging digital technologies such as blockchain—can help firms to meet customers’ needs, in turn encouraging customers to reciprocate with loyalty.

Analysis of survey and archival data from a Fortune 100 logistics vendor and its major business customers yields novel insights. “The quality of tracking information significantly influences customer satisfaction and loyalty,” say the researchers. “Our empirical evidence supports our theorization that service efficiency and service flexibility are two use-value pathways through which tracking information quality relates to customer loyalty.” The relative importance of these pathways depends on the complexity of coordinating multiple modes of the service provided.

These findings have crucial implications for managers. By providing accurate and timely tracking information through digital technologies, B2B logistics providers can attract loyal customers and grow their market share. Digitalization initiatives that support better information across supply chains—such as sensorization integrated with the Internet of Things—have much to offer in responding to and compensating for the recent shocks experienced by supply chain participants.