Modelling of Critical Factors for Improving Logistics Performance of India Using Interpretive Structural Modelling

Improving logistics performance is at the essential of policies to strengthen competitiveness and to boost trade integration. The purpose of this article is to identify the factors which will lead to improvement in the logistics performance for a developing country like India, using interpretive structural modelling (ISM). This research presents a framework and the mutual relationships among the factors identified for improving the logistics performance. The identified factors were clustered according to their driving power and dependence power. Investment by government and investment by logistics service providers are the two factors at the bottom level of the hierarchy, implying that developing countries need to focus on high investments for improving logistics performance. Improvement in logistics performance will improve the competitiveness of organizations and higher profits, leading to improvement in foreign direct investment and economic growth in the long run.