Critical factors that affect logistics performance: a comparison of China, Japan and Korea

In globalised and uncertain business environments, many firms have turned their attention to logistics in order to make their business processes more efficient and cost-effective. In this paper, we identify critical factors that affect logistics performance at the macro level by surveying current literature. The factors include industrial policy priorities, strategic infrastructure development, public-private logistics market growth, and communication network configurations. We also compare the logistics of three East Asian countries (China, Japan, and Korea), using relevant macro-level data. These three countries are increasingly important in global logistics with their aggregate GDP accounting for approximately 21% of the world GDP. Finally, to facilitate future research, we offer eight propositions regarding relationships among critical factors and logistics outcomes. Critical issues facing the three nations' logistics industries are also discussed.