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.

Citation

Wong, W.P., Soh, K.L., Chong, C.L. and Karia, N. (2015), "Logistics firms performance: efficiency and effectiveness perspectives", International Journal of Productivity and Performance Management, Vol. 64 No. 5, pp. 686-701. https://doi.org/10.1108/IJPPM-12-2013-0205