Does Human Resource Management Contribute to the Development of Logistics and Supply Chain Capabilities? an Empirical Study of Logistics Service Providers in China‪.‬

Introduction Globally, logistics has emerged as a significant growth sector in most nations. Reputed to be the world's manufacturing hub, China is among the nations where the demand for logistics and supply chain services has been growing at a monumental pace (Bolton & Wei 2003, Goh & Ling 2003, China Logistics Yearbook 2006). The growth of the logistics service market in China has outstripped the pace of logistics infrastructure development, despite the vast amount of investment being channelled to develop transport and logistics related infrastructure. China's lack of modern logistics infrastructure exposes its logistics operations to a large array of risks (Kerr 2005). More prominent, however, is the distinct shortage of logistics and supply chain management expertise, including information system support capabilities, which have become hurdles to supply chain development in China (Hong, Chin & Liu 2004).The inadequate logistics infrastructure coupled with lack of skilled workers and management are blamed for the high levels of loss, damage and deterioration of stocks experienced, especially for perishable goods (Dolven 2002, Kerr 2005). These challenges, however, also generate opportunities for companies with advanced logistics systems and skilled people to grow their market.