earticle

영어

The contemporary business environment facing Industrial firms changes rapidly, accompanying pressing competition among one another, in what is so called the period of uncertainty. Once again, the whole-scale competition calls for the Law of Survival of the Fittest. At this point, Korean companies cannot find any other choice but to seek for realistic formula to survive in such an urgently changing business environment. A adopting the theory of W. Baumol`s Neo-Wagner theory, which proclaimed low productivity of public sector compared to that of private sector, and applying it to manufacturing and services, we can test a hypothesis that the figure of productivity appears to be lower in service sector than in manufacturing. That seems to be caused by the lower proportion shared by physical capital compared to human resource in service sector compared to the manufacturing. This study was conducted based upon the above theory which finds no exception in logistics companies which is part of service sector. This study analyzes and evaluates productivity of the logistics companies in Korea. By clarifying causes which hinder effective production in logistics companies, this study suggests desirable policy implication for development of business strategy for them. The result of this study shows that productivity of logistics company is lower than that of manufacturing, thereby suggest that it is necessary to establish management strategies to improve productivity in the industry and counterplan for urgently changing business environment.