Logistics firms performance: efficiency and effectiveness perspectives

Abstract

Purpose – The purpose of this paper is to assess the efficiency, effectiveness and performance of logistics companies in Singapore and Malaysia which are the growing logistics hubs in Asia by using a triangular data envelopment analysis (DEA). It also identifies various factors that significantly affect the efficiency, effectiveness and performance of the Singaporean and Malaysian logistics companies and proposes ways to improve their competitiveness. Design/methodology/approach – First, this study employs a triangular DEA to evaluate the efficiency and effectiveness of the companies. Second, Tobit regression is used to explore the factors that affect logistics performance. Third, the managerial decision-making matrix is addressed and suggestions made to help logistics managers improve performance. Findings – The results reveal that small firms, on average have more potential than the large ones. The results also demonstrate that investment influences firm performance significantly. Originality/value – This paper is the first attempt to apply a triangular DEA-based approach by decomposing performance into efficiency and effectiveness for logistics companies in Singapore and Malaysia.

Competitiveness Through the Integration of Logistics Activities in SMEs

“…All three proposed relationships were statistically significant. The findings did not only reveal the importance of logistics activities in achieving high levels of competitive advantage, but also revealed how the positioning of SMEs logistics activities is centered around quality − doing things right; speed − doing things fast; delivery dependability − doing things on time; and flexibility − changing what you do and the cost of doing things cheaply (Wong, Soh, Chong, Karia, 2015;Taschner, 2016;Aharonovitz, Vieira, Suyama, 2018;Omoruyi, 2018). To survive the fast-changing business environment, logistics activities are critical business tools to obtaining a competitive advantage.…”

Integrated data envelopment analysis: Linear vs. nonlinear model

“…This unified measurement of the efficiency and effectiveness is important since it is more informative in identifying the sources of the poor activity performance when compared to simply measuring the efficiency or the effectiveness of the process (Chiou et al, 2010). Other studies which also suggest decomposing the overall performance into its efficiency and effectiveness components include: Karlaftis (2004), , Keh et al (2006), Lan and Lin (2006), Chiou et al (2007), Yu and Lin (2008), Yu (2008), Yu and Lee (2009), Yu and Fan (2009), Hsieh and Lin (2010), Wu et al (2013), Huang et al (2014) and Wong et al (2015).…”

Effective Strategies Small Retail Leaders Use to Engage Employees

“…Poor decision-making by management also leads to disengagement and reduces the organization's revenue (Miles & Clieaf, 2017). Therefore, management's responsibility to find strategic ways to engage employees in the workplace and protect the organization's financial resources (Wong et al, 2015).…”

“…2016) further stated that e-learning programs are only effective if the employee uses the software and applies what they learned to their job.Financial consequences of disengaged employees Wong, Soh, Chong, and Karia (2015). reported that evidence showed the financial health and viability of firms are directly impacted by employee engagement.…”