ICT Adoption among Logistics Companies in ASEAN Countries

Abstract

In this era of globalization, adoption of information and communication technology (ICT) is one of the critical determinants of logistics companies' competitiveness and growth. This is especially so for the ASEAN countries as they pursue the vision of regional economic development and integration. Existing empirical studies on ICT adoption by logistics companies in developing countries are, however, scarce and have limited theoretical support and so far no comparative analysis of ICT adoption among ASEAN logistics companies and its determinants has been undertaken. This paper investigates the level of ICT adoption among ASEAN logistics companies and also develops an investment-based model to explain it. The model is evaluated with logistic regression using firm-level data collected from interviews with a sample of ASEAN logistics companies. The study finds that ICT adoption level varies significantly among the ASEAN countries and provides an empirical support for an investment-based view of ICT adoption. It also finds no further evidence for the relevance of the institutional theory to the ASEAN logistics industry. These findings have important strategic and policy implications for the ASEAN policy-makers and logistics industry.

Keywords:

• logistics companies
• investment-based view
• ICT
• ASEAN
• survey method

Acknowledgements

The authors are extremely grateful to the ASEAN Secretariat, the various government agencies, logistics companies in the ASEAN countries covered and all their respective national logistics associations for their valuable assistance and cooperation in the conduct of this study. The authors are likewise extremely grateful to the anonymous referees for their valuable and useful comments made on the earlier version of this paper. However, the usual caveat applies.

Notes

ASEAN means Association of Southeast Asian Nations comprising of Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand and the transitional economies of Cambodia, Laos, Myanmar and Vietnam. Together, they form a market of over 500 million people, a GDP of US$700 billion and are one of the fastest growing and successful regional economic groupings. At the 10th ASEAN Summit, the ASEAN Heads of State signed the ASEAN Framework Agreement for the Integration of Priority Sectors. Logistics is one of these priority sectors. To implement this vision, a Roadmap for the Integration of Logistics Services was endorsed at the 39th ASEAN Economic Ministers meeting in 2007 (ASEAN Secretariat, 2009).