Agility and digitalization competency in logistics 4.0 in military setting: the challenge, risks and opportunities


Abdul Rahim Abdul Rahman, Saharudin Ab. Rashid, Noor Raihan Ab Hamid

Volume 1, Issue 2
Year 2018

Logistics 4.0 Competency, Knowledge Management Practice, Logistics Responsiveness, Agility, Digital Competency, Military


This paper attempt to integrate Resource Based View (RBV) and Social Exchange Theory (SET) in identifying and analysed the importance of logistics 4.0 through links between logistics 4.0 competency, logistics responsiveness (agility, positioning, distribution support, and service recovery), digital competency and knowledge management practice in the era of Industry 4.0.  Sample of 117 military respondents from the Malaysian Armed Forces throughout Malaysia are studied. This study used path analysis with maximum likelihood estimation that estimates the relationship in a structural equation system using AMOS 22. Path analysis results show that the estimated regression weights are significant based on p-value (p-value < 0.05), that is the relationship among the criteria are statistically significant except for the relationship of KMP. In brief, the path analysis model is statistically valid and achieved model fit with Chi square test (z2 (df = 3) = 1.773, p-value = 0.000), CFI = 0.821, TLI = 0.809, IFI = 0.824 and RMSEA = 0.082. Three of four of the hypothesis are supported while KMP was not found to partially mediate the relationship between logistics responsiveness and logistic competency 4.0. This study substantially explains theoretically the available resources that can be exploited to achieve higher standards in employing logistics 4.0 thus contribute to extend logistics 4.0 developments in military setting. From a practical perspective, the findings of this study are expected to facilitate the Malaysian Armed Forces in formulating strategies and capitalizing on the internal capabilities which may provide platforms and opportunities for more effective logistics management.


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