Logistics Efficiency, Supply Chain Finance, and Firm-Level Financial Outcomes: Evidence from Indonesia and Uzbekistan

Abstract

This study examines the impact of logistics efficiency on firm-level financial outcomes in Indonesia and Uzbekistan. These outcomes include on working capital, pricing, profitability, as well as the adoption of supply chain finance (SCF).  The study is motivated by the importance of logistics performance in shaping financial conditions, particularly in emerging economies with different structural characteristics. A comparative cross-sectional survey was conducted involving 40 practitioners (20 respondents from each country) working in logistics, supply chain, and finance-related functions. Data were analysed using the Mann-Whitney U test and Cohen’s d to identify differences between the two countries. The results show that firms in Uzbekistan experience higher working capital pressure due to logistics delays and are more likely to pass freight costs on to product prices compared to firms in Indonesia. These differences are associated with higher inflation rates and stronger import dependence in Uzbekistan. Meanwhile, perceptions related to profitability and risk reduction tend to be similar across both countries. In addition, SCF adoption remains relatively low in both contexts, with a higher proportion of non-users in Uzbekistan. This study highlights that logistics efficiency is closely linked to financial resilience. Expanding access to SCF instruments, such as factoring and reverse factoring, can help firms manage financial pressure, especially in environments where logistics systems are still developing.