IMPACT OF LOGISTICS INTERFACE CAPABILITIES ON OPERATIONAL PERFORMANCE: THE MEDIATING ROLE OF SUPPLY CHAIN AGILITY

This paper reviews the contribution operated by logistics interface capabilities to the performance of operations by testing the mediating role of integrated logistics capabilities and operational agility of supply chain and the moderating role of cost efficiency. Although existing literature recognizes that a logistics capabilities or strategy is strategic, there is little empirical evidence on how interface-based capabilities will result in performance outcomes especially in dynamic and uncertain supply chain systems. Filling this gap, the research paper will support a capability-agility-performance model which can utilize value creation in the logistics operations. A quantitative cross-sectional research design was also adopted. Information was gathered using a questionnaire that was structured and answered by the professionals in logistics and supply chain. The SmartPLS was used to test that relating constructs in direct, mediating, and serial mediation by use of the partial least squares Structured Equation Modeling (PLS-SEM). The findings reveal that logistics requirement and the information management interface capability have a strong positive effect on integrated logistics capability (β=0.408 and β=0.482, p < 0.001). Integrated logistics capabilities also have a positive effect on supply chain agility ( β = 0.375, p = 0.001) that, in turn, impacts operation performance positively ( β = 0.442, p = 0.001). The supply chain agility has been identified as a major mediator with considerable power to explain (R 2 = 0.750). The paper empirically supports a serial mediation process connecting the logistics interface capabilities with the operational performance that encompasses practical implications to the managers and expands the supply chain theory based on capabilities. Keywords: Logistics interface capabilities; integrated logistics capabilities; supply chain agility; operational performance; PLS-SEM