Logistics and Customs Digital Transformation: Digital Maturity Model as A Comprehensive Assessment Framework

Abstract

Globally, customs and logistics operations are important aspects of international trade facilitation. Even though the responsibilities of logistics service providers and customs authorities vary from country to country, customs authorities are dominant institutions and play a principal role in facilitating international trade by enforcing regulations. This study assesses the existing practices and gaps in logistics and customs digital technologies using a digital maturity model targeting digital maturity level and digital readiness from external and internal users’ perspectives. In addition, reviewed the technology acceptance model determinants to learn how new technologies are designed to be useful and easy to use. The study applied quantitative approaches with the six most cited subjective determinants of Digital Maturity Models to evaluate the status quo of as-is digitalization practices. A valid survey response of 238 customs employees and 384 logistics service providers was analyzed using descriptive statistics, correlation, and relative importance index analysis. The study findings with all digital maturity model dimensions reveal that external users view the customs' digital technology as not very advanced. Whereas the customs employee response slightly surpasses the expected nominal average, positioning it at an average maturity level. Digital technology, digital strategy, and digital process are ranked in the first three positions to present the relative importance among all dimensions.  The study recommends a unified framework by combining the internal and external digital technology users' perceptions of digital maturity and the technology acceptance model supplemented by relative importance index analysis to evaluate the factors' importance. It is proposed to be used as a valid and reliable assessment tool for logistics and customs digital technologies.