The Effect of Collaboration Strategy on Logistics Performance: Mediating Role of Logistics Capability

Abstract

This study was aimed to examine the role of collaboration strategy in improving organizational capability, the latter being the impetus of increased logistics performance. This research adopted a quantitative design, and the research instrument was a questionnaire using a five-point Likert scale. The research population was 22 freight forwarding companies located in Badung regency, Bali province, Indonesia. A total of 44 managers and assistant managers were asked to fill out the questionnaire. The research model was built by using structural equation modelling approach and the data were analyzed with the help of SmartPLS-3 software. The research findings revealed that collaboration had a significant effect on logistics capability, which in turn had a significant effect on logistics performance. Theoretically, the findings imply that we need to add the variable body of knowledge into the relationship between the variables and to consider the role of logistics capability as the mediating variable. The practical implication concerns the importance of collaboration strategy in improving capability and logistics performance. The research limitations are discussed.