Examining the perceived impact of financial investment in AEO certification on performance through trade facilitation and public and private partnership

Abstract

PurposeThe purpose of this paper is to examine the impact of financial investment (FI) in Authorized Economic Operator (AEO) certification on performance of Korean logistics companies through public and private partnership (PPP) and trade facilitation (TF).Design/methodology/approachQuestionnaire survey was conducted to collect the data for this study, out of which 285 were adopted for the analysis using structural equation modeling for quantitative analysis. Also, it is based on professionals in Korean logistics companies that are AEO certified only.FindingsFI on AEO certification had positive impacts on performance via PPP, while TF variable had no significant impact on the overall performance.Research limitations/implicationsThis study focuses on the FI in AEO certification and its impact on performance in Korea. There should be more quantitative and confirmatory research on other countries with AEO certification to validate the findings of this study. It may be possible to generate contrary findings in different economies or countries.Practical implicationsThese findings imply that public managers should focus more on TF aspects of the program with the Mutual Recognition Agreement with major trading partners and growing economies around the world in order to make the AEO program more popular and global with supply chain members overseas.Originality/valueThis study has offered original discovery and practical, academic implications for AEO program in terms of testing and suggesting factors provided by previous studies as a confirmatory and quantitative research.