Authors:

• Petra Adelajda Zaninović, University of Rijeka, Faculty of Economics and Business
• Ljerka Cerović, University of Rijeka, Faculty of Economics and Business
• Nina Ponikvar, University of Ljubljana, School of Economics and Business

Keywords:

Logistics firms | Profitability | Dynamic panel data analysis | GMM | 

Abstract:

This paper examines the profitability factors of logistics firms in Croatia and Slovenia, small open economies that rely on logistics infrastructure and operations to leverage their geographical advantages and maximise their potential to develop into regional logistics hubs and clusters. The analysis is based on a sample of 3,680 logistics firms in the Republic of Croatia and 5,730 in the Republic of Slovenia. The data for the analysis are sourced from the Orbis - Bureau van Dijk database and cover the period from 2007 to 2022. The study applies dynamic panel data analysis using the Arellano-Bond GMM estimator.

The results show that a firm’s past profitability and net asset turnover have significant positive effects on the profitability of logistics firms, demonstrating the dynamic behaviour of logistics firm profitability. The findings indicate that the logistics market is dynamic and that industry specifics have a significant impact on profitability. Despite the increasing importance of logistics firms in national economies, research on logistics is rarely conducted from the perspective of logistics firm profitability. This study examines the determinants of logistics firm profitability and incorporates industry specifics into the analysis, which are important but often neglected in research of this type. The added value of this study also lies in the application of a dynamic model.

The Sustainable Development Goals (SDGs) addressed in the article are:

• SDG 9 – Industry, Innovation and Infrastructure
• SDG 12 – Responsible Consumption and Production
• SDG 13 – Climate Action

The article is published in:
European transport research review (Springer Nature)

The content is freely accessible at:

Profitability determinants of logistics firms: a comparative analysis of Croatia and Slovenia