The mediating role of corporate governance between public governance and logistics performance: International evidence

Abstract

The purpose of this study is primarily to investigate the association between public governance quality and logistics sector performance, and to ascertain whether corporate governance mediates this relationship. Grounding on institutional and agency theories, this study has a novel approach as it focuses on the relationship between public governance and corporate governance in enhancing logistics performance. Our study also has macro perspective and a country by country analysis, drawing on data collected from three sources, namely the World Bank, the World Economic Forum, and Worldwide Governance Indicators. The findings indicate that public governance quality is significantly associated with logistics sector performance, and corporate governance does indeed act as a significant mediator in this relationship. The results provide clear and straightforward recommendations for countries which score low in the Logistics Performance Index (LPI). In addition, we put forward recommendations for policymakers to further advance the institutional environment, and also to improve corporate management in enhancing logistics sector performance.