Corruption, gender inequality and logistics performance

• Pages: 381-397
• DOI: https://doi.org/10.1108/IJLM-02-2019-0062
• Published date: 17 January 2020
• Date: 17 January 2020
• Author: Paul D. Larson
• Subject Matter: Logistics,Management science & operations

Corruption, gender inequality

and logistics performance

Paul D. Larson

University of Manitoba, Winnipeg, Canada and

Hanken School of Economics, Helsinki, Finland

Abstract

Purpose –The purpose of this paper is to develop and test theory-driven hypotheses on the influence of

corruption and gender inequality on logistics performance.

Design/methodology/approach –This paper develops hypotheses based on a review of the literature and

theory linking corruption, gender inequality and logistics performance. Testing the hypotheses draws on the

following secondary data so urces: the World Bank Logisti cs Performance Index, Trans parency

International’s Corruption Perceptions Index and the United Nations Development Programme Gender

Inequality Index. Regression analysis is used to test the hypotheses.

Findings –A significant direct effect is evident between corruption perceptions and perceived logistics

performance. Corruption is detrimental to logistics. Further, there is evidence of an indirect effect, via gender

inequality. Gender inequality is also linked directly to lower logistics performance. Gross domestic product/

capita enters the analysis as a control variable.

Research limitations/implications –While the analysis uses secondary data, sources are credible and

their methods –while not perfect –are logical and appear to be reasonable. It is possible that excluded

variables could further explain the relationships under study. This implies future research opportunities,

perhaps involving case studies of specific nations.

Practical implications –The results should inspire businesses, non-governmental organizations and

governments to invest in, aid, advocate for and legislate toward greater gender equality –and against

corruption. Logistics educators have an important role in disseminating this message.

Social implications –Gender inequality and corruption are current, global social issues. Moving forward

toward equality and away from corruption are the right moves. Such moves appear to also yield better logistics.

Originality/value –This paper is among the first linking corruption and gender inequality to logistics

performance. It shows how social issues impact logistics performance at a national level.

Keywords Africa, Europe, Asia, Modelling, Performance measurements, Global logistics

Paper type Research paper

Introduction

Putting matters of morality aside for the moment; rampant corruption and gender inequality

are hard on the world’s wallet. According to the World Bank Group (2017), “Businesses and

individualspay an estimated $1.5 trillion in bribeseach year. This is about 2 percent of global

gross domestic product (GDP) –and 10 times thevalue of overseas development assistance”.

Based on WorldEconomic Forum (WEF) research, Thomson (2017)suggests $2 trillion a year

is wasted on corruption. Wodon and de la Brière (2018) estimate that the cost of gender

inequality in earningsalone runs far into the trillions. Amidst this corruption and inequality,

global logistics spending is expected to reach $10.6 trillion by 2020 (Henderson, 2018).

On January 1, 2016, the United Nations Sustainable Development Goals (SDGs) were

officially launched. The 17 SDGs and their 169 targets are an ambitious plan to make the

world a better place via economic growth, social inclusion and environmental protection

(UN, 2018a). Goal 16, “Promote just, peaceful and inclusive societies,”includes a focus on

corruption. Among the targets for this SDG is to: “Substantially reduce corruption and

bribery in all their forms.”Goal 5, “Achieve gender equality and empower all women and

girls,”addresses gender inequality. One of its targets is to: “End all forms of discrimination

Received 5 March 2019

Revised 18 July 2019

26 August 2019

12 November 2019

Accepted 28 November 2019

The current issue and full text archive of this journal is available on Emerald Insight at:

https://www.emerald.com/insight/0957-4093.htm

This paper forms part of a special section “14th European Research Seminar (ERS) on Logistics”, guest

edited by Britta Gammalgaard.

Logistics

performance

TheInternationalJournalof

LogisticsManagement

Vol.31 No. 2, 2020

pp.381-397

©EmeraldPublishingLimited

0957-4093

DOI10.1108/IJLM-02-2019-0062

381

against all women and girls everywhere.”The IASC (2017) asserts that: “Cultural practices

regarding gender provide some of the most fundamental sources of inequality and exclusion

around the world.”

This study begins with the observation that logistics performance varies dramatically

across nations. Thus, the quest is to identify possible root causes of this variation. National

income is a candidate predictor –“rich”nations should have better logistics (Arvis et al.,

2016). Given that around half of potential logistics personnel are women, gender inequality

within nations arises as another possible predictor of national logistics performance.

Corruption, which also appears to vary widely across nations, emerges as yet another

predictor of logistics performance, based on two recently published studies. Does corruption

facilitate (Koh et al., 2018) or hinder (Wong and Tang, 2018) logistics performance?

Despite the profound potential implications of lingering gender inequality and ongoing

corruption in the world, there is surprisingly little research linking these constructs

(especially gender inequality) to logistics performance. Wong and Tang (2018, p. 432) note

the “lack of studies on major factors associated with logistic performance especially in the

global context.”There appear to be only a few such published studies, e.g. d’Aleo (2015),

Guner and Coskun (2012), Koh et al. (2018) and Uca et al. (2016).

Mateu (2017) suggests that gender diversity in the workplace enhances collaboration,

tolerance, productivity and corporate social responsibility. Unfortunately, while womenmake

up 46.8 percent of the American workforce, they account for only 22.6 percent of thenation’s

transportationand logistics workers.American women in logisticsare also paid less than their

male counterparts –$81,385 vs $119,236, on average (Burnson, 2017). Similar results have

been reportedin Canada (Larson and Morris,2014). According to the South Australian Freight

Council, benefits of gender equality in logistics include increased employee satisfaction and

innovation, enhanced customer service and improved financial performance (SAFC, 2015).

In the global business environment, logistics managers not only face gender inequality,

they must also confront corruption (Burnson, 2015). Transparency International (TI) defines

corruption as “the abuse of entrusted power for private gain.”TI differentiates between

grand, petty and political corruption. Grand corruption occurs at high levels of government,

creating fabulous personal wealth for “leaders,”by sacrificing the well-being of the people.

Petty corruption involves abuse of power by lower-level officials, compromising citizens’

access to basic public services through bribery, extortion, etc. Political corruption

involves manipulation of policies, institutions and procedures by political decision

makers in allocating resources to sustain their own personal power, status and wealth

(www.transparency.org/what-is-corruption#define).

Depending on where in the world firms attempt to conduct business, they may lose out to

corrupt competitors or be forced to deal with corrupt government officials. Corruption adds

another element of risk to expansion plans and capital investments. Burnson (2015)

advocates embedding anti-corruption targets and compliance into corporate culture.

Within and across nations, organizations (businesses, government agencies and non-

governmental organizations (NGOs)) are the primary entities performing logistics activities.

If gender inequality and corruption are detrimental to organizational logistics, these perils

also probably have a negative impact on national logistics performance. This paper

addresses the following research question:

RQ1. How do corruption and gender inequality impact logistics performance, at a

societal/national level?

Thus, the study extends “macro-logistics”(Havenga, 2018) beyond economics and into the

socio-economic realm. Its primary, unique contribution involves the development and

empirical testing of theory-driven hypotheses on the links among corruption, gender

inequality and logistics performance.

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