The double-edge resource-based view of logistics performance and governance in Asian countries

Bee Hui Koh, Wai Peng Wong, Chor Foon Tang, Ming K. Lim

Research output: Contribution to journalArticleResearchpeer-review

15 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)652-668
Number of pages17
JournalAsia Pacific Journal of Marketing and Logistics
Volume30
Issue number3
DOIs
Publication statusPublished - 2018
Externally publishedYes

Keywords

  • Asian countries
  • Corruption
  • Governance
  • Logistics performance

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