A study of the Indonesian trucking business: Survival framework for land transport during the Covid-19 pandemic

Abstract

Trucking occupies the largest Indonesian transportation market share, making this sector a crucial contributor to the Indonesian supply chain. Any problem in freight transportation impacts the entire supply chain. This study explores how trucking companies were affected by the COVID-19 pandemic and what factors contributed to their resilience. A total of 190 Indonesian trucking companies were involved in this research. This study demonstrates that trucking companies’ performance was significantly affected by both the COVID-19 pandemic and companies' resilience. Their resilience was affected by various factors, including the adoption of digital technologies, strength of financial resources, risk and business continuity management, and relationships with customers. Even though financial resource management directly affected company performance, the effect was more significant when company resilience was a mediating factor between financial resources management and company performance. Hence, survival frameworks and managerial action should emphasize these factors to enhance company resilience and performance. However, successful application of this in the trucking industry still requires further exploration.