DETERMINANTS IMPACT OF LOGISTICS EDUCATION TOWARD GROWTH OF LOGISTICS INDUSTRY

Abstract

This research is to highlight on the determinants impact of logistics education toward growth of logistics industry. Logistics industry has grown rapidly in our country. The current issues in logistics industry can be categorized with human capital, environmental, globalization and innovation. The present research examined determinants impact of logistics education which are skill of manpower, enviromental awareness, global network and innovation contribute toward growth of logsitics industry. The purpose of this research is to provide the result of determinants impact logisitcs education towards growth of logsitics industry. The research is used questionnaire survey on logistics company within Kelantan was conducted, and 100 samples were analyzed randomly. and focused within Kelantan. The findings will be particular important determinants impact of logistics education in assisting growth of logsitcs industry.

Keywords: Logistics Education, Logistics industry, Skill of manpower,Environmental awareness, Global network,Innovation

1. Introduction
In this century, the industrial sector is moving rapidly. The development of nationalization and globalization had been progressing in recent times. This causes to require logistics management in several areas for improving development. Logistics is a process that plays an important role for the industry. Logistics will direct and indirect affect the other economics activities (Tracey, 1998). Logistics industry has grown rapidly in worldwide. In the year 2013, the Malaysian logistics industry is forecasted to rise about 9.5 % to RM139.74 billion (Sullivan, 2013). Malaysia is ranked on 24th of largest trading country with making logistics industry supreme in worldwide. The growth of logistics sector in Malaysia is thriving as the economy is estimated to grow between 5% and 6% annually in the coming years. Logistics also supports in economic business with performing as a main facilitator of development of trade and business in the nation of economy.

The logistics education can develop employees to show efficient and effective performance in the logistics management. The field of logistics is a popular program and course for undergraduate and postgraduate level in public universities of Malaysia (Jim Wu, 2007). There are 4 public universities that offers undergraduate program in logistics and transport related program such as UiTM, UMK, UMT and UUM (Mohamed Syazwan Ab Talib, 2013). The graduates with the knowledge of logistics education will able to apply information and skills in the logistics industry to reduce the problem faced in logistics industries.

Research Objective
There are several objectives we would like to accomplish throughout this research regarding the determinants impact of logistics education toward growth of logistics industry.
I. To identify the determinants impact of logistics education toward growth of logistics industry
II. To determine the most determinants impact of logistics education towards growth of logistics industry

III. To examine the relationship between determinants impact of logistics education and growth of logistics industry.

2. Literature Review

According to Mitra (2008) the important of logistics industry retain required because the logistics industry demand globally increase. The logistics filed is developing rapidly and exceptional revolution. The logistics industry trends also show the logistics operations with predicting to grow at 20% to 25% ("Logistics industry trends," 2010). Nowadays the logistics industry is applying technologies with proving faster, cheaper, more consistent and sustainable delivery (Robinson, 2015).
Based on Mitra (2008), skilled and capable work is inadequacy for the logistics field. This statement shows that logistics education is important part with producing skilled manpower or professional logistician for growth of logistics industry. Skill is required in every fields, neither less logistics field also needs as much as skill of manpower for increasing the efficient and effectiveness of company constrained. Therefore skill manpower is very important for current logistics environment with producing capacity of manpower for improving growth of logistic industry.
The important tasks for the society is to reduce the environmental problems (Oskarsson, 2014). Logistics is one of aspects will causing high rate of negative environmental impact on earth like air pollution from vehicles (McKinnon, 2006). Many of these practices are carried out for contributing environmental performance of firm in the logistics industry (Javier Gonzalez-Benito, 2007). Companies implementing green principles to the logistics operation to ensure the procurement of goods and services come from suppliers with minimizing environmental standards.
The network has been selected to progress advances with assisting the companies are moving swiftly towards globalization for the new thousand years. According to Hertz (1993), the internationalization practice utilized by logistics firms was coordinated for extensive of business. Although the fact that Svensson (2001) has perceived that the global network important strategy in a way to deal with worldwide overall business activities. The head of network in transport and logistics can be considered as "the mother" of the web in economic activities.
Innovation is needed for ensuring logistic operation with operating efficiency in the logistics industry. Therefore, a well-learned employee is needed for helping us to operate efficient and effective logistics management in term of innovation. According to Soosay (2002) through innovation organisational problems and processes can be enhance in term of management practices, update organisational structures, custom build service, facilitate financing, improve networking, advance procurement, and others.

3. Research Method

Dependent variable

Skill of manpower, Environmental awareness, Global Network, Innovation

Independent variable 

Growth of logistics industry 

The target populations in this study were conducted logistics companies within Kelantan. The sample size planned will be 100 questionnaires. Simple random sampling is chosen for this research. This research is used questionnaire as a tool to collect data for distributing to the respondents in quantitative survey. The questionnaires have been set based on five point Likert scale (eg 1= Strongly Disagree, 2=.Disagree, 3=Neutral, 4=Agree, 5=Strongly Agree). The questionnaire consists of three sections which are section A, B and C. Section A will be questioned the demographic profile which is organization profile and respondent profile. In section B, the questions contains related to the dependent variables of this research which is growth of logistics industry. In section C, the questions contains related to the independent variables which are skill of manpower, environmental awareness, global network, and innovation. The information will be transfer into data file for the subsequent analysis procedure by using Statistical Package for Social Sciences version 23. 

4. Result and Discussion

The overall result for the pilot test showed that 0.922 value as an excellent sign of strength of association. For the data analysis, it was identified that the Cronbach alpha of all independent and dependent variables were between 0.723-0.876 as shown in Table 1. In pilot test, the Cronbrach Alpha value must be more than 0.6 explains that there was a high level of consistency in the questionnaire given by the respondents.

The overall result for the pilot test showed that 0.922 value as an excellent sign of strength of association. For the data analysis, it was identified that the Cronbach alpha of all independent and dependent variables were between 0.723-0.876 as shown in Table 1. In pilot test, the Cronbrach Alpha value must be more than 0.6 explains that there was a high level of consistency in the questionnaire given by the respondents.
Descriptive statistics for dependent variable and independent variable
The table below shows the summary of descriptive statistics for Independent and Dependent Variables.

 

Table 2 Descriptive Statistics for dependent variable and independent variable

 

From the table shows the highest mean is 4.12 for innovation and the lowest mean was 4.01 achieved by growth of logistics industry and environmental awareness. The standard deviation of growth of logistics industry had achieved 0.488 and for independent variable had reached 0.576, 0.576, 0.517 and 0.515 respectively.

Pearson Correlation Analysis
Pearson’s correlation coefficient is an analytical measure of the strength of all linear relationship between two variables.

**. Correlation is significant at the 0.01 level (2-tailed).

The table above shows all the hypothesis has been supported with the r value of 0.523, 0.591, 0.529 and 0.501. From there can be noticed that H2 shows the highest correlated to dependent and independent variables. The p-value shows 0.000 which is less than 0.01 shows that the hypothesis is being supported.

Table 4 Summary of Pearson correlation analysis

 

Therefore, H1, H2, H3 and H4 were accepted where there is significant relationship between skill of manpower, environmental awareness, global network and innovations toward growth of logistics industry.

5. Limitation & Recommendation of research

The limitation of study is incorporation from the respondents. The researcher went to the company for distributing the questionnaire due to working hours. This cause the respondents just simply tick the question asked in the questionnaire. Another limitation of study is lack of reliable data. The scope of our study is focuses on logistics company within Kelantan. Lastly, the limitation of study is lack of prior research studies on the topic. There is no prior research means that insufficient related information on this topic for the researcher. This will cause the researcher requires to develop an entire new research.

There are some recommendations could be suggested to the future researchers for improving their research. According to Aziz, Jaafar, and Tajuddin (2016), environmental sustainability must be reinforce for development of logistics industry with competing at international level. Logistics education will create environmental awareness for minimizing negative effects on the environment. Researches recommend that recruiting skilled logistician will help to develop growth of company with minimizing logistics cost. Employees learn the basic knowledge of logistics and non-logistics through logistics education which is helpful towards growth of logistics industries. Furthermore, logistic information exchange through a global network in market will also increase the growth of the logistics industry which a network connection that exists between different countries on the global stage. Logistics education will be necessary to define training and educational system dedicated to technology and innovation managers in the field of logistics.

6. Conclusion
In this paper, the logistics education has been used as a tool to improve the growth of logistics industry. Logistics education becomes very important nowadays in order to advance efficient logistics management and outstanding results. Besides work experience, knowledge that learns in logistics education will be fundamental and backbone of the success of logistics industry. These four aspects which is skill of manpower, environmental awareness, global network and innovation as the determinants impact on the growth of logistics industry.

References

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