Logistics system as a factor of business development: The case of the Republic of Serbia

Logistics is becoming one of the most important sectors of the economy and an indispensable element in the process of international trade and industrial development. The aim of this paper is to examine the role and importance of logistics system in improving the performance of companies in different industries and to identify its key dimensions that need to be improved in order to create a favorable business environment within a given economy. The logistics system is observed through two dimensions"hard", which refers to the elements of physical infrastructure, and "soft" which includes segments related to logistics services and customs procedures. The research was conducted on a sample of 298 companies in the Republic of Serbia. The research methodology includes factor analysis based on which, the positive impact of the logistics system on the selected performance of companies has been proven. In addition, the difference in the importance of certain elements of logistics system between manufacturing and non-manufacturing companies has been proven. The results of the research can be of particular use for policy makers, as an instrument for improving the overall business environment through the development of individual logistics subsystems. Also, this evidence allows better insight for individual companies into the effects of different segments of logistics on business development, according to the industry.