Wesley Friske, Gawon Yun and Koray Ozpolat
The purpose of this study is to examine how national logistics performance facilitates new venture creation and innovation. The authors propose that national logistics performance…
Abstract
Purpose
The purpose of this study is to examine how national logistics performance facilitates new venture creation and innovation. The authors propose that national logistics performance is a key mediator in a national system of entrepreneurship.
Design/methodology/approach
The sample for this study combines secondary data from multiple sources with survey data from the Global Entrepreneurship Monitor to create an unbalanced panel spanning 84 countries across five points in time. The authors test for the mediating role of national logistics performance using a Monte Carlo method.
Findings
The results of mediation analysis confirm that national logistics performance is an important causal link in a national system of entrepreneurship. High-performing logistics networks at the national level help entrepreneurs launch new ventures and innovate by linking economic conditions and formal regulatory institutions with productive entrepreneurship.
Originality/value
This study identifies logistics as an overlooked but important component of a national system of entrepreneurship. For policymakers, this study identifies critical linkages among economic conditions, regulatory institutions, logistics and entrepreneurship. The study also has practical implications for entrepreneurs.
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Jan Hendrik Havenga and Zane Paul Simpson
The purpose of this paper is to present the results of South Africa’s national freight demand model and related logistics cost models, and to illustrate the application of the…
Abstract
Purpose
The purpose of this paper is to present the results of South Africa’s national freight demand model and related logistics cost models, and to illustrate the application of the modelling outputs to inform macrologistics policy.
Design/methodology/approach
Spatially and sectorally disaggregated supply and demand data are developed using the input-output (I-O) model of the economy as a platform, augmented by actual data. Supply and demand interaction is translated into freight flows via a gravity model. The logistics costs model is a bottom-up aggregation of logistics-related costs for these freight flows.
Findings
South Africa’s logistics costs are higher than in developed countries. Road freight volumes constitute 80 per cent of long-distance corridor freight, while road transport contributes more than 80 per cent to the country’s transport costs. These challenges raise concerns regarding the competitiveness of international trade, as well as the impact of transport externalities. The case studies highlight that domestic logistics costs are the biggest cost contributor to international trade logistics costs and can be reduced through inter alia modal shift. Modal shift can be induced through the internalisation of freight externality costs. Results show that externality cost internalisation can eradicate the societal cost of freight transport in South Africa without increasing macroeconomic freight costs.
Research limitations/implications
Systematic spatially disaggregated commodity-level data are limited. There is however a wealth of supply, demand and freight flow information collected by the public and private sector. Initiatives to create an appreciation of the intrinsic value of such information and to leverage data sources will improve freight demand modelling in emerging economies.
Originality/value
A spatially and sectorally disaggregated national freight demand model, and related logistics costs models, utilising actual and modelled data, balanced via the national I-O model, provides opportunities for increased accuracy of outputs and diverse application possibilities.
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Lorenzo Bruno Prataviera, Elena Tappia, Sara Perotti and Alessandro Perego
Today logistics is an ever-growing multi-billion-dollar business, and logistics operations have been increasingly outsourced to specialised players. The intended aim of this paper…
Abstract
Purpose
Today logistics is an ever-growing multi-billion-dollar business, and logistics operations have been increasingly outsourced to specialised players. The intended aim of this paper is to offer a multi-method approach for estimating the size of the national logistics outsourcing market by building upon financial-reporting data of logistics service providers (LSPs).
Design/methodology/approach
The proposed approach is structured into four steps, clustered around two main stages: framework setting and data collection, and processing. A combination of methods is offered, including a review of academic literature and secondary sources, focus groups, interviews and data extractions from national databases.
Findings
The proposed approach is meant to be replicable in different countries, thus allowing for comparison amongst markets. With reference to a specific country and year, the following outputs are provided: market size in terms of the number of players and generated turnover – total and split by LSPs type – and market concentration measures. A practical application of the proposed approach to a specific context, i.e. Italy is finally offered.
Originality/value
The study focusses on the logistics outsourcing market and considers financial-reporting data from LSPs, avoiding the need for introducing assumptions about the value of logistics operations for shippers. The proposed approach can contribute to strengthening the accuracy of LSPs' market analyses, and supporting the development of national policies by local governments. The adoption of multiple methods brings rigour and reliability to the study. Finally, high flexibility is ensured, as the method may be adaptable over time to cope with future changes in the logistics landscape.
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Tomi Solakivi, Lauri Ojala, Harri Lorentz, Juuso Töyli and Sini Laari
The size of the logistics market is typically estimated from the national accounting and market data. However, this data does not take certain in-house logistics services into…
Abstract
Purpose
The size of the logistics market is typically estimated from the national accounting and market data. However, this data does not take certain in-house logistics services into account and most likely underestimates the true size of the market. The purpose of this paper is to develop a method for estimating the potential size of the logistics market in terms of overall logistics expenditure and to also account for in-house services.
Design/methodology/approach
The research approach involves combining longitudinal industry- and firm-level turnover data, incorporating survey data from Finland on logistics outsourcing and costs, and calculating yearly logistics expenditure and the market demand for logistics services. Descriptive statistics, weighted arithmetic means and analyses of variance are employed in the estimations.
Findings
The research suggests and demonstrates a rigorous method for estimating the size of the logistics market, including both market-based demand and in-house services.
Research limitations/implications
The empirical data used to illustrate the result are limited to a single country. The methodology should be further validated with data from other countries. The quality of the survey data could be improved by targeting multiple informants from a single firm.
Social implications
One outcome of the research is that policymakers will be better able to estimate the size of the logistics market on a national level. For service providers, the results provide additional information on the market potential of logistics services.
Originality/value
The novelty of the research lies in combining multiple data sources and expanding the estimation of the logistics market to include services provided in-house.
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Logistics has always been a central and essential feature of all economic activity and yet paradoxically it is only in recent years that it has come to receive serious attention…
Abstract
Logistics has always been a central and essential feature of all economic activity and yet paradoxically it is only in recent years that it has come to receive serious attention from either the business or academic world. One very obvious reason for this neglect is that, whilst the functions that comprise the logistics task are individually recognised, the concept of logistics as an integrative activity in business has only really developed within the last 20 years.
The purpose of this paper is to develop and test theory-driven hypotheses on the influence of corruption and gender inequality on logistics performance.
Abstract
Purpose
The purpose of this paper is to develop and test theory-driven hypotheses on the influence of corruption and gender inequality on logistics performance.
Design/methodology/approach
This paper develops hypotheses based on a review of the literature and theory linking corruption, gender inequality and logistics performance. Testing the hypotheses draws on the following secondary data sources: the World Bank Logistics Performance Index, Transparency International’s Corruption Perceptions Index and the United Nations Development Programme Gender Inequality Index. Regression analysis is used to test the hypotheses.
Findings
A significant direct effect is evident between corruption perceptions and perceived logistics performance. Corruption is detrimental to logistics. Further, there is evidence of an indirect effect, via gender inequality. Gender inequality is also linked directly to lower logistics performance. Gross domestic product/capita enters the analysis as a control variable.
Research limitations/implications
While the analysis uses secondary data, sources are credible and their methods – while not perfect – are logical and appear to be reasonable. It is possible that excluded variables could further explain the relationships under study. This implies future research opportunities, perhaps involving case studies of specific nations.
Practical implications
The results should inspire businesses, non-governmental organizations and governments to invest in, aid, advocate for and legislate toward greater gender equality – and against corruption. Logistics educators have an important role in disseminating this message.
Social implications
Gender inequality and corruption are current, global social issues. Moving forward toward equality and away from corruption are the right moves. Such moves appear to also yield better logistics.
Originality/value
This paper is among the first linking corruption and gender inequality to logistics performance. It shows how social issues impact logistics performance at a national level.
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South Africa's logistics cost measurement was expanded to include externality costs, and scenarios based on the key exogenous risks were developed to inform mitigation strategies…
Abstract
Purpose
South Africa's logistics cost measurement was expanded to include externality costs, and scenarios based on the key exogenous risks were developed to inform mitigation strategies. This paper aims to discuss these issues.
Design/methodology/approach
The research approach is quantitative, based on a gravity-orientated freight flow model, a road transport cost model, actual transport costs for other modes, a warehousing cost survey, an inventory delay calculation (to inform warehousing cost calculations and inventory financing costs) and an externality cost calculation.
Findings
Transport cost pressures are expected to deteriorate due to the increasingly negative outlook for the oil price and the internalisation of externality costs. The nature of these forces compels transport cost challenges to be addressed strategically through collaborative, industry-wide and even nationwide initiatives.
Research limitations/implications
Key limitations are inconsistent commodity classification schemes across information sources, and incomplete container content data. The researchers are collaborating with information providers to address these issues and refine model accuracy and forecasting.
Practical implications
The exogenous risks strengthen the argument for new approaches to South Africa's logistics cost challenges driven by the high densities of corridor freight flows.
Social implications
The inclusion of externality costs highlighted the negative environmental impact of the current modal configuration and provides impetus for change.
Originality/value
Major advancements to logistics cost modelling were made by incorporating externality costs and developing scenarios for risk mitigation. Freight flow data granularity (in excess of one million records) allows both aggregation to national-level intelligence to inform policies, large-scale infrastructure investments and industrial positioning, and disaggregation to enable practical application.
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The governments of Australia and the Republic of Korea recognize the importance of freight logistics in improving national competitive advantage. As they are seeking to capitalize…
Abstract
The governments of Australia and the Republic of Korea recognize the importance of freight logistics in improving national competitive advantage. As they are seeking to capitalize on the economy-wide benefits to be derived from a world-class freight logistics industry, there is a need to keep abreast of their respective freight logistics policy initiatives as the basis for exploring prospects for mutual cooperation within the broader Asian-Pacific context. Attention here is focused on evaluating the Australian Government 's Freight Transport Logistics Industry Action Agenda to reflect on its relevance to the Korean Government ' s aspirations to become the Business Hub of Northeast Asia as envisioned in the Presidential Committee's Road Map for Promoting Northeast Asian Logistics Hub.
Imoh Antai and Roland Hellberg
The total defence (TD) concept constitutes a joint endeavour between the military forces and civil defence structures within a TD state. Logistics is essential for such joint…
Abstract
Purpose
The total defence (TD) concept constitutes a joint endeavour between the military forces and civil defence structures within a TD state. Logistics is essential for such joint collaboration to work; however, the mismatch between military and civil defence logistics structures poses challenges for such joint collaboration. The purpose of this paper is to identify logistics concept areas within the TD framework that allow for military and civil defence collaborations from a logistics operations perspective.
Design/methodology/approach
Pattern-matching analysis is used to compare patterns found in the investigated case with those prescribed from the literature and predicted to occur. The study seeks to identify logistics concepts within TD from the literature and from the events describing the Swedish response to the Covid-19 pandemic. Pattern matching thus allows for the reconciliation of logistics concepts from the literature to descriptions of how the response was handled, albeit under a TD framework.
Findings
Findings show quite distinct foci between the theoretical and observational realms in terms of logistics applications. While the theoretical realm identifies four main logistics concepts, the observational realm identifies five logistics conceptual themes. This goes on to show an incongruence between the military and civil parts of the TD.
Research limitations/implications
This study provides basis for further research into the applications and management of logistics activity within TD and emergency response.
Originality/value
Logistics applications within TD have not, until now, received much attention in the literature. Given this knowledge gap, this study is of original value.
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Ruth Banomyong and Thomas E. Fernandez
The purpose of this paper is to assess the logistics performance of national trade corridors in Myanmar based on a theoretical portrayal of multimodal transport in logistics…
Abstract
The purpose of this paper is to assess the logistics performance of national trade corridors in Myanmar based on a theoretical portrayal of multimodal transport in logistics chains combined with the real-time operation of such chains. A cost-time-distance model was used as the core theoretical framework for the discussion. Empirical data related to cost, time and distance was obtained to evaluate national trade corridors in Myanmar. The study explored the performance of trade corridor in the pulses and beans sector from the largest sown and harvest areas to the main seaports in Myanmar. The pulses and beans sector was selected because the country is the 2nd highest exporter in the world and would benefit from improved access to its national seaports. Under the cost-time-distance model used, it was observed that physical infrastructure, institutional environment as well as limited capability of local providers hindered the overall performance of the trade corridors under study.