The Influence of Logistics Performance on Company Performance in the Small and Medium Industry

Subject Areas : manufacturing and process planning

Qurtubi Qurtubi ¹ , M Suyanto ² , Anas Hidayat ³ , Elisa Kusrini ⁴

1 - Department of Industrial Engineering, Universitas Islam Indonesia, Yogyakarta, Indonesia
2 - Department of Informatics, Faculty of Computer Science, Universitas AMIKOM, Yogyakarta, Indonesia.
3 - Department of Management, Universitas Islam Indonesia, Yogyakarta, Indonesia
4 - Department of Industrial Engineering, Faculty of Industrial Technology, Universitas Islam Indonesia, Yogyakarta, Indonesia.

Received: 2024-01-16 Accepted : 2024-05-08 Published : 2024-05-08

Keywords: Halal certification, Logistics efficiency, Logistics Effectiveness, Logistics Differentiation, Company Performance.,

Abstract :

A company’s performance plays a vital role in business growth. Many studies on a company’s performance have been established that involve various variables as antecedents. Among others is logistics performance. This research aims to test and analyze the impact of logistics performance on a company’s performance by involving exogenous variables in efficiency, effectiveness, logistics differentiation, and halal certification. The fundamental theory of company performance applied in this research is the resource-based theory, a critical component that adopts a resource-based view. The study involved 125 business units in the halal-certified beverage industries located in two provinces in Indonesia. The questionnaire was applied as the data collection method, while Structural Equation Modeling was employed as data analysis with parameter estimation referred to as maximum likelihood. The novelty of this research is in the introduction and empirical testing of the halal certification variable, in addition to the variables of logistics efficiency, effectiveness, and differentiation. These variables can potentially impact a company's success through its logistics performance. The hypothesis test result revealed that logistics efficiency negatively influences logistics performance. On the contrary, effectivity, differentiation, and halal certification positively and significantly influence logistics performance. Similarly, logistics performance substantially impacts a company’s performance. The findings suggest that to enhance the company's performance, the individual responsible for logistics should possess a comprehensive understanding of logistics performance and performance in other areas. The process could be carried out by increasing efficiency, implementing differentiation strategies, and implementing halal certification.

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