Does transportation size matter for competitiveness in the logistics industry? The cases of maritime and air transportation

Abstract

This study has been designed to investigate the determinants of competitiveness in the logistics industry. In particular, we focus on the expansion of transportation as a central theme. Size and economy of scale are important issues in many industries. Previous studies have typically highlighted the positive aspects of large scale in terms of competitiveness. However, this study acknowledges that the large scale of transportation means, such as container ships and cargo planes, may not necessarily be positive for the competitiveness of the logistics industry. We believe that expansion is a double-edged sword. Economy of scale can have negative aspects associated with it. This study analyzes how transportation size affects competitiveness in the logistics industry. Additionally, we discuss other determinants of logistics performance such as ICT capability and green transportation. According to empirical findings, we could not identify a specific relationship between the large scale of marine transportation and logistics performance. Moreover, a negative influence behind the increase in air transportation is discussed. Additionally, this study attempts to establish theoretical foundations for logistics performance. This study has been designed to investigate the impact of transportation expansion on logistics performance based on the RBV, transaction cost analysis (TCA), and institutional theory. (C) 2020 Production and hosting by Elsevier B.V. on behalf of The Korean Association of Shipping and Logistics, Inc.