Exploring logistics performance index (LPI) from global perspective: a study based on network analysis (NA)

Since its inception in 2007, the Logistics Performance Index (LPI) has emerged as a crucial metric for enhancing the global economy. It serves as a standard that allows logistics managers and nations to identify the challenges and opportunities present in their logistics operations. Nevertheless, the six indicators that comprise the LPI have not been comprehensively analyzed regarding their significance and centrality from a global perspective. This paper aims to address this gap by examining these six LPI indicators for the first time from a global perspective. Utilizing network analysis (NA), the study models the indicators to identify those that are most central and significant, based on their network structure, degree of betweenness, closeness, and strength metrics. The data analyzed spans from 2007 to 2023 and is sourced from the World Bank (WB), with annual intervals. The findings reveal that the competence and quality of logistics services (CQL), the quality of trade and transport-related infrastructure (INFRST), and the ability to track and trace consignments (CT) are the most central and significant indicators of international logistics performance, as determined by the network structure and its centrality parameters. Furthermore, an edge weight matrix is provided to illustrate the interrelationships among the LPI indicators. The study concludes by discussing both theoretical and managerial implications, emphasizing its contributions to the field.