INFORMATION TECHNOLOGY, LOGISTICS PERFORMANCE AND MODERATING EFFECT OF FIRM SIZE: EMPIRICAL EVIDENCE FROM EAST COAST REGION OF MALAYSIA

Abstract

Information Technology (IT) is universally accepted as one of efficiency boosters. Logistics Service Providers (LSPs) around the world involve in IT implementation with the purpose to increase their service efficiency in catering business demands, especially for LSPs which operate in the areas of heavy trade activities. The activities create congestion which lead to deficient of LSPs performance and increase delivery time and total costs. However, the review of literature reveals that IT implementation met with productivity paradox. Thus, in order to examine how IT implementation influences the performance of LSPs in East Coast Malaysia, 81 LSP firms in the region were involved in this study. This study also investigated the moderating effect of LSP sizes on their performance. The findings reveal that IT implementation significantly influenced LSPs’ performance, but it happened vice versa for the moderator investigation. This study has bridged the literature gaps of IT adoption in such that it offers empirical evidence and new insights on the significant moderating effect of firm size in the relationships between IT implementation and logistics firm performance using Malaysian samples.Keywords: Information Technology, logistics service providers, performance, firm size, Malaysia.Cite as: Mohd Zawawi, N.F. & Abd Wahab, S. (2018). Information technology, logistics performance and moderating effect of firm size: Empirical evidence from east coast region of Malaysia. Journal of Nusantara Studies, 3(1), 87-102. http://dx.doi.org/10.24200/jonus.vol3iss1pp87-102