The Moderator Effect of Global Competitiveness Index on Dimensions of Logistics Performance Index

Abstract

The most important assessment tool that demonstrated the comparative situation of countries is Logistics Performance Index (LPI) created by World Bank. This index which has been prepared as a questionnaire consists of six dimensions. These dimensions are Customs: The efficiency of clearance process, Infrastructure: Quality of trade and transport related infrastructure, International Transportation: Capability of arranging competitively priced shipments, Logistics Competence: Competence and quality of Logistics Services, Tracking and Tracing: ability to track and trace your consignments, Timeliness: Carrying out the transports at scheduled time. In this research, moderating effect of Global Competitiveness Index (GCI) on each dimensions of LPI was measured. The moderating effect was measured by means of hierarchical regression method. As a result of the analysis, the moderating effects on three of the six dimensions have been found as statistically significant. These dimensions are International Transportation: Capability of arranging competitively priced shipments, Tracking and Tracing: ability to track and trace your consignments and Timeliness: Carrying out the transports at scheduled time. Due to not being any research based on the dimensions of two indexes (LPI and GCI) before, this research can be considered as a breakthrough in literature. The most important contribution of this research is that it allows evaluating logistics performance over the top as to increase the size of a country's global competitiveness index. In other words, according to the result of this research, if a country targets to the top level in GCI index, it needs to make important improvements in the following dimensions of logistics services: International Transportation, Tracking and Tracing and Timeliness.