Jurnal Internasional
International Journal Logistic Management: Impact of logistical business continuity planning on operational capabilities and financial performance
Abstract
Purpose – Organizations have long employed business continuity planning (BCP) to prevent
disruption to their operations. The authors seek to extend existing theory by examining the impact of
logistical business continuity planning (LBCP) – BCP in the context of logistics – on firms’ operational
capabilities and financial performance.
Design/methodology/approach – Using data of firms operating in the US transportation and
warehousing industries, the authors empirically test LBCP’s affect on their business units’ financial
performance.
Findings – The authors’ findings suggest that LBCP influences financial performance via
improvement in logistical competitive capability and enhanced disaster immunity. Further, the
findings indicate that when a firm employs mindful-planning processes, an important element within
LBCP, it can avoid the trade-off between risk management and efficiency. The authors proffer that
LBCP processes are dynamic capabilities because of improvement in logistical competitive capabilities
and enhanced disaster immunity. Thus, when firms employ LBCP they gain a competitive advantage,
which improves financial performance.
Originality/value – This is the first research paper which establishes the link between LBCP and its
logistical competitive capability, disaster immunity and financial performance.
Keywords Logistical business continuity planning, Disaster immunity,
Logistical competitive capability, Structural equation modelling, Business continuity, Disasters
Paper type Research paper
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