Optimizing operational performance through logistics and supply chain system effectiveness: evidence from Indonesian automotive manufacturing firms
Abstract
Logistics and supply chain systems are critical determinants of operational efficiency in inventory-intensive industries such as automotive manufacturing. Although prior studies have examined the relationship between supply chain management and firm performance, much of the evidence relies on perceptual measures or single-dimensional outcomes, leaving limited finance-based empirical validation in emerging markets. This study addresses this gap by examining how logistics and supply chain system effectiveness influences multidimensional operational performance in the Indonesian automotive sector. The study contributes to the literature by providing finance-based evidence of capability-driven performance and by integrating the Resource-Based View with Contingency Theory within an emerging-market regulatory context. A quantitative explanatory design is employed using pooled firm-year data from automotive manufacturing firms listed on the Indonesian Stock Exchange over the period 2022–2024. Logistics effectiveness is operationalized using objective financial efficiency ratios derived from audited statements. Multiple regression analysis with moderation testing is conducted using SPSS. The findings indicate that logistics and supply chain system effectiveness significantly improve inventory turnover and time-based inventory efficiency, demonstrating strong support for capability-driven performance effects. However, the relationship between logistics effectiveness and operating cost efficiency is not statistically significant, suggesting that cost structures are influenced by broader structural factors. Firm size positively moderates the relationship between logistics effectiveness and inventory-based performance, confirming that organizational scale conditions capability effectiveness. Robustness tests confirm the stability of these results across alternative model specifications.