The effect of acquisition moves on income, pre-tax profits and future strategy of logistics firms

Our research deals with a comprehensive study of the management success factors of logistics service providers using a new approach, and examines the life of logistics service companies. The data were collected from 51 logistics service providers in Hungary. We searched for the proper enterprise scale – acquisitions – strategies (including the method of looking for the economies of scale in the LSP segment to be examined, and the role of strategy choice). Our research has found that among logistics companies those firms which followed the growth pattern has significantly higher sales revenue than the companies growing organically. Additionally, logistics companies – considering their pre-tax profits - work more efficiently when they have a growth strategy (regardless of its time lag). However, this claim is true only for those companies that did not have any (revenue) growth over the previous period. The results of our research can effectively help logistics service providers find their business success factors, which will enable them fulfil the expectations of their customers in the supply chain better