The double-edge resource-based view of logistics performance and governance in Asian countries
Asia Pacific Journal of Marketing and Logistics
ISSN: 1355-5855
Article publication date: 11 June 2018
Abstract
Purpose
Asia has been transformed into a well-regulated dynamic platform for trade and is today world’s fastest-developing economic region. However, the increasing cross-border economic activities create new opportunities for corruption. The purpose of this paper is to assess the impact of corruption on trade facilitation using logistics performance index (LPI). This paper also examines the moderating effect of governance or government effectiveness (GE) on the relationship between corruption and LPI within Asian countries.
Design/methodology/approach
A panel of time-series data from year 2007 to 2014 of 26 Asian countries was collected for analysis. Static linear panel models which comprised of pooled ordinary least squares, fixed-effect model and random-effect model were utilised to analyse the panel data.
Findings
The findings show that corruption significantly affects LPI and each of the six dimensions in LPI. The results also show that governance or GE has a moderating effect on the relationship between corruption and LPI.
Practical implications
This study benefits Asian governments to gain a better understanding on influences of corruption on trade facilitation and triggering suggestions of a government role in the relationship. Practically, the results could be used as a guideline in improving national LPI. Besides, the findings could be used to support policy decision to modify corruption regulations at the national and regional levels.
Originality/value
This study reveals that the optimistic view of sands in the wheel overcomes the dark side of the grease in the wheel practices. To be corrupt free or less corrupt is a rare and inimitable resource capability that makes nations logistically competitive.
Keywords
Acknowledgements
The second author would like to thank the Ministry of Higher Education Malaysia and Universiti Sains Malaysia for the financial support of Fundamental Research Grant Scheme (203/PMGT/6711513) and Bridging Grant (304/PMGT/6316008) to complete this research project.
Citation
Koh, B.H., Wong, W.P., Tang, C.F. and Lim, M.K. (2018), "The double-edge resource-based view of logistics performance and governance in Asian countries", Asia Pacific Journal of Marketing and Logistics, Vol. 30 No. 3, pp. 652-668. https://doi.org/10.1108/APJML-07-2017-0135
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited