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Logistics Effect on Corporate Performance

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September 21st, 2022

We seek to measure the performance of Chinese e-commerce firms and explore how their logistics capacity is associated with their performance. Abstract: Since the 1990s, e-commerce has flourished in China by providing new opportunities to many traditional industries. Meanwhile, e-commerce has faced logistics challenges, such as problems with the distribution system, while logistics plays an important role in realizing e-commerce by ensuring smooth production and materializing customer-centric services. In this study, we assess the performance of Chinese e-commerce companies by employing data envelopment analysis, analyze the common logistics problems confronted by different e-commerce companies through industrial analyses, and explore how their logistics capabilities are related to their performance by applying a series of statistical analyses. Drawing on our analysis results, we suggest business strategies to address the problems. We conclude our study by confirming that the sustainable development of e-commerce heavily relies on the continuous improvement of the logistics system. keywords: e-commerce, logistics, data envelopment analysis, China

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