The effect of supplier proximity on logistics performance

In the wake of globalization, the search for putting the products on new markets geographically expands the supply chains with the access to high quality and affordable resources while the increasing importance of giving a quick response to the market, delivery problems, and logistics costs are generating a pressure towards preventing this expansion. In this regard, "the nature of the role of the relational proximity in overcoming the problems caused by the increasing geographical expansion in terms of logistics performance of the business" constitutes our main research question. The aim of the study is to analyze the effect of geographical and relational proximity on the logistics performance of the business and the intermediary role of relational proximity in the effect of geographical proximity on logistics performance. In line with this aim, a domestic and foreign literature review was primarily performed on the supply chain structure, supply chain relationships, the concept of proximity, and the dimensions of proximity. The studies conducted were presented in summary. In order to collect the research data, a questionnaire was formed using the "Geographical Proximity Scale" developed by Narasimhan and Nair, the "Relational Proximity Scale" developed by Golicic and Mentzer and the "Logistics Performance Scale" developed by Fugate vd. The questionnaire form was implemented on 639 manufacturing enterprises that are members of the Samsun Chamber of Commerce and Industry. Data collected from 218 enterprises were analyzed using SPSS 25 and IBM SPSS Amos v.24 programs. The normality analysis, frequency analysis, reliability analysis, exploratory factor analysis, and confirmatory factor analysis of the collected data were respectively performed, the data were analyzed by t-test, oneway analysis of variance (ANOVA), between which groups there was differentiation determined by posthoc Tukey. In addition, multiple regression analysis was used to test the direct effects, and Structural Equation Model was used to test the mediation relationship. As a result of the analyses performed, a significant negative correlation was found between the importance attached to the geographical proximity and logistics performance, while a significant positive correlation was found between the importance attached to the relational proximity and logistics performance. It was observed that relational proximity has a full mediation effect regarding the effect of geographical proximity on the logistics performance of the business. Keywords: Geographical Proximity, Relational Proximity, Logistics Effectiveness, Logistics Efficiency, Logistics Differentiation.