Title: Improving logistics performance through investments and policy intervention: a causal loop model

Authors: Amrita Jhawar; S.K. Garg; Shikha N. Khera

Addresses: Delhi School of Management, Delhi Technological University, New Delhi, India ' Delhi Technological University, Bawana Road, Sector 28, Rohini, New Delhi-110042, India ' Delhi School of Management, Delhi Technological University, New Delhi, India

Abstract: Logistics performance is an important factor that affects the competitiveness of nation as well as firms. Poor performance is a barrier to trade and foreign direct investment and thus to economic growth. The paper looks at the impact of investment by government and logistics service providers in strengthening of infrastructure, improvement in government regulation, development of skilled workforce and increase in the use of information technology on reduction in logistics cost, reduction in time, improvement in reliability, improvement in flexibility and improvement in safety for improving the logistics performance of a developing country like India. Variables are identified through thorough literature review and the mental models are converted to causal loop diagrams to understand the relationships among the variables. The paper is an attempt to fill the gap in available literature to improve the logistics services in India and it will help as an aid to the government and logistics service providers to improve the logistics performance and understand its effect on the economy and competitiveness of organisations.

Keywords: causal loop diagram; logistics performance index; infrastructure development; skilled workforce; information technology; government regulations; government investment; logistics service providers; LSP investment; policy intervention; India.

DOI: 10.1504/IJPQM.2017.082638

International Journal of Productivity and Quality Management, 2017 Vol.20 No.3, pp.363 - 391

Received: 29 Apr 2015
Accepted: 06 Aug 2015

Published online: 20 Feb 2017 *

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