Analysis on Strategy Choice of New Technologies Adopted in Logistics Enterprises under Demand Uncertainty

Abstract

The method of real options was used to analyze the mechanism of decision-making on adoption of new technology under demand uncertainty in logistics enterprises, the threshold of demand size was then gained. The result shows that considering flexibility of decision-making will increase the threshold on adoption of new technology and this is unfavorable for the adoption of new technology in logistics enterprises. At the same time, the factors influencing the threshold were further analyzed. The adoption of new technology depends on the government guidance and strategic alliance relationship between logistics service supplier and demander to promote Chinese logistics enterprises and logistics industry improvement accordingly.