Logistics Efficiency and Firm Performance: Evidence from Indonesian Small and Medium Enterprises
Ferri kuswantoro, M. Mohd Rosli

Logistics is a decisive factor for a firm to sustain its competitive advantage. Despite the importance of logistics to firm performance, studies on logistics innovation and efficiency are extremely limited. To fill up the literature gap, this paper provides some insight into the impact of logistics innovation on firm performance and the moderating effects of logistics efficiency on logistics innovation and firm performance. Using a regression analysis on 120 samples collected from agro-based SMEs in Indonesia, it was found that innovation in information sharing and transportation coordination led to superior firm performance. The result of the study also shows that logistics efficiency mediated the relationship between innovations in information sharing and transportation coordination, and firm performance. This proves that the effect of innovation on the performance of SMEs is stronger when logictics efficiency is improved through such an innovation.

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