The effects of human resource practices on agility and distribution support competencies (an empirical study of logistics service provider in Indonesia)

Abstract

Indonesia logistics industry has the greatest potential in the world, with over 200 million people, a huge number of trade agreements, growing e-commerce, and rising citizen purchasing power. This industry, however, has been hindered by a shortage of both quality and quantity of human resources employed in the sectors. To explore the effect of human resource practices have on logistics and supply chain competencies in Indonesia, this paper investigates the relationship between recruitment and selection, training and development, and reward management with the logistics and supply chain competencies of agility and distribution support. Data responses from 61 logistics service providers to a survey in 2022 were tested using hierarchical multiple regression analysis, which revealed recruitment and selection, as well as reward management only found to have a significant positive effect on agility competency. Whereas, training development has a significant positive effect only with distribution support. These results bring new insights that, in the Indonesian logistics sector, individual reward management can facilitate the development of agility, although it is considered a team-based competency. This highlights that LSP service levels in Indonesia are still based on individual effort, requiring effective and engaging individual reward management rather than team-based reward management.Keywords: human resource management practices; logistics and supply chain competencies; Indonesia logistics industr