Exploring the Modification Effect of Corporate Governance on the Relationship Between Good Governance and Logistics Performance

Abstract

Efficient logistics management fills the puzzle that ensures the survival and maintenance of an economic system and the growth of its international trade relations. Aligned to sustainable development goal 16, the present study is an essential inquiry of knowledge that empirically examines (1) the role of public governance on logistics industry performance in Sub-Saharan Africa and (2) whether this relationship improves with the moderation effect of good corporate governance. We constructed a panel sample of annual aggregated data for sub-Saharan African countries from 2007 to 2020. The dataset was analyzed in STATA 18 using a dynamic robust endogeneity one-step system generalized method of moments (SyGMM) that yielded both short- and long-run coefficients. Empirical findings revealed that public governance negatively affects the performance of the logistics industry in both the short and long run. However, the effect became desirably positive when moderated with corporate governance as it showed that a per cent improvement in the corporate-public governance nexus results in a 1.01% and 2.09% improvement in logistics industry performance in the short and long run, respectively. Thus, the paper offers policy implications concerning corporate governance such as raising ethical standards and enhancing honesty and transparency regarding resource allocation.