The mediating effect of technology capabilities between forwarding services and tracking performance for the forwarding company in Selangor

One of the main challenges of forwarding companies is to monitor the promise date for freight delivery to the customers. The purpose of the study was to examine the mediating effects of technology capabilities between forwarding services and tracking performance of logistics firms in Selangor. It also identifies various factors that significantly affect the efficiency, effectiveness and performance of the Malaysian logistics companies and proposes ways to enhance their competitiveness. A cross-sectional data were collected from a sample of 40 freight forwarding companies in Selangor, who are registered members of the Federation of Malaysian Freight Forwarders. Data was collected using a close-ended questionnaire. Then, the data was computed using Smart PLS to examine the direct and indirect effects on the variables towards tracking performance for the forwarding companies in Selangor. The study results indicate significant effects of technology capabilities as a mediator between documentation and tracking performance of forwarding companies. The study recommended that freight forwarding companies embrace systematic tracking performance to improve the forwarding industry in Malaysia. Hence, this research study would be a supportive roadmap for logistics companies before implementing suitable tracking tools to monitor tracking performance in everyday business operations.