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The role of the law enforcement agencies in transport security, a survey with Swedish operators

The role of the law enforcement agencies in transport security, a survey with Swedish operators Logist. Res. (2013) 6:145–157 DOI 10.1007/s12159-013-0102-8 OR IGINAL PAPER The role of the law enforcement agencies in transport security, a survey with Swedish operators • • Luca Urciuoli Anthony Paulraj Dag Na ¨ slund Received: 20 September 2012 / Accepted: 10 April 2013 / Published online: 23 April 2013 Springer-Verlag Berlin Heidelberg 2013 Abstract Transport security, that is, the protection allocation of law enforcement agencies’ resources on against antagonistic attacks in form of terrorism, theft, criminal justice efforts as well as on community policing counterfeiting, piracy etc. has become a major concern for activities to deter crime. Using Structural Equation Mod- managers during the last years. The consequences of elling techniques, two hypotheses are empirically tested on security incidents include economic losses for industries, a sample of 577 Swedish transport operators. The results but in case of terror attacks may also affect society in unveil that both the relationships are statistically signifi- general. If transport networks are not adequately protected, cant. Finally, implications for managers and practitioners consumable products (e.g. food, pharmaceuticals) could be are discussed. counterfeited or contaminated and smuggled into a country, giving rise to death or diseases. Today, to enhance the Keywords Logistics security  Supply chain security protection of transport networks, companies have wide Law enforcement agency  Transport security  Community access to handbooks, advanced security technologies or policing  Criminal justice efforts certification programs (e.g. TAPA EMEA, ISO28001, C-TPAT or AEO, etc.). Despite this, statistics indicate that transport networks are low-risk/high-revenue targets, and 1 Introduction therefore security needs to be enhanced. The purpose of this paper is to highlight the role played by the law Supply chains are expected to perform in accordance to enforcement agencies in transport security. More specifi- European laws, for example, freedom of competition, cally, this paper strives to demonstrate the influence of the immunity of assets, copyright protection, safety of trans- port operators and managers etc. However, available sta- tistics give indication that very often the supply chain L. Urciuoli (&) business is a constant victim of actions perpetrated by Cross-border Research Association, Supply Chain Security and Logistics Visibility, Lausanne, Switzerland organized crime as for instance, fraud, theft, corruption, e-mail: luca.urciuoli@gmail.com violence etc. [26, 46]. These incidents are not often pub- licly reported by firms because of the negative effects they L. Urciuoli may have on the brand image of the organizations involved Department of Industrial Management and Logistics, Engineering Logistics, Lund University, Lund, Sweden [18]. However, the magnitude of their frequency is so high and the related consequences so severe that many supply A. Paulraj chain firms have indicated ‘‘security’’ as one of their Department of Entrepreneurship and Relationship Management, management’s top priorities to work on within the next University of Southern Denmark, Kolding, Denmark e-mail: ap@sam.sdu.dk years [41]. It has been demonstrated, in many contexts, that the D. Naslund insecurity of supply chains has severe consequences for Department of Management, Coggin College of Business, business and society. Existing figures, which do not take University of North Florida, Jacksonville, FL, USA into account the disruptive effect of failed deliveries in e-mail: dnaslund@unf.edu 123 146 Logist. Res. (2013) 6:145–157 supply chains, show amounts of stolen cargo in US enforcement agencies. In particular, it is pointed out that between $10 and $30 billion and in Europe at about €8.2 the business may manage to more effectively and pro- billion [2, 21]. It has also been estimated that in Europe actively deal with crime through closer collaboration with alone, $176 billion of goods have been counterfeited in the Law Enforcement Agencies (LEAs) [6, 7]. In these 2005 [34]. However, costs of security incidents may be studies very little focus is given on the supply chain related to disruption costs and therefore to shipment delays, business. At the same time, other research in the supply lost sales and unsatisfied customer demand [1, 13, 47]. For chain management area have pointed out that the interac- instance, in case of theft, a disruption will be originated tion of supply chain companies with authorities as customs because the goods disappear while in transit and will not be administrations may influence security (e.g. security certi- delivered on time to the consignee. Delays or losses may be fications) [12, 14, 22, 48, 50]; however, none of them also experienced in case suspicious elements (e.g. coun- undertake an empirical analysis to understand the role of terfeits or contraband) are detected by Customs officers; LEAs in supply chains. hence, containers could be stopped, inspected and eventu- Hence, the purpose of this article is to explore the role of ally seized. Finally, other costs of security incidents law enforcement agencies in supply chains. In particular, include the following[25]: increased insurance premiums, by means of interviews and a survey study performed in enhanced security protection, internal audit activities, Sweden, we aim to understand how the transport sector investigation and prosecution of suspects, increased selling evaluates the efforts that the law enforcement agencies are prices and weakened competitive advantage, business putting to deter security incidents. reputation, deterioration in quality of service, threat to the This article is split into 8 sections: after the introduction survival of the business etc. the following two sections expound the theoretical frame- A worrying aspect of the insecurity of supply chains work and the research hypotheses to be tested in this study. concerns the possible societal repercussions. Direct con- The fourth section describes the methodological steps to sequences may concern the safety of operators and our perform the explorative study and the survey study. Next, communities. During an attack to a terminal or transport the results of the interviews and the survey including vessel, drivers or terminal operators may be killed, threa- descriptive statistics, factor and confirmatory analysis and tened or severely injured [28]. Terrorists may manage to hypotheses testing are discussed in section five and six. contaminate food, pharmaceutical, disrupt critical supplies While section seven discusses the results, section eight or even smuggle weapons or terrorists and thereby expose presents the conclusions from our study as well as impli- societies to terror attacks, (e.g. causing fear, injuries, death, cations for managers and practitioners. environmental contamination etc.) [39]. Indirect conse- quences include the fortification of criminal organizations that are able to make their revenues grow while encoun- 2 Theoretical framework tering minimal penalties. As criminology experts indicate ‘‘the real harm done by organized crime comes not from As part of the theoretical framework, we summarize pre- selling inherently illegal goods and services but from the vious research, relevant for this paper, within the topics of way the profits are subsequently invested’’ [32]. It has been transport security, protection and defence and the role of demonstrated that when criminals enter the legal business, law enforcement agencies. public sector corruption increases so as unfair business competition, a clear damage to society and economic 2.1 Transport security growth of a country [31]. Looking at previous research dealing with supply chain In this paper, transport security threats are interpreted as or logistics security, it is possible to deduce that security is crime events that are perpetrated from individuals out- an important source of risk to be considered by transport side or inside transport companies, that is, antagonistic and risk managers [39]. Supply chain risk management attacks. Antagonistic attacks have been widely studied researchers recommend identifying drivers of risks in within the criminology discipline and only recently have supply chains, in order to optimize risk mitigation strate- come to the attention of transport and supply chain gies and consequently moderate the negative outcomes of researchers. Present research has pointed out the corre- disruptions [51]. In addition, more attention should be put spondence between criminology theories and transport/ to understand what is driving managers’ efforts to manage supply chain security [19]. According to the elements of risks [42]. To our knowledge, very little has been done on crime theory, a crime against a supply chain is com- this topic. Other literature from criminology has investi- mitted whenever three elements converge: (1) the per- gated the nature and extent of business crime and more petrator, (2) the target and (3) lack of proper security. In precisely the interaction between the business and the law addition, the crime displacement theory states that 123 Logist. Res. (2013) 6:145–157 147 criminals make rational choices depending on a sub- 2.3.1 Community policing activities jective estimation of the profits and efforts required to commit the crime (i.e. the level of protection of the The traditional approach that the police use to prevent and targets and prosecution risks). Very often, supply chains control crime is based on reactive tactics as random patrolling, rapid response to emergency calls and retro- are targeted by criminals as the result of a rational decision based mainly on two parameters: the expected spective criminal investigations [31]. However, existing research has pointed out that better crime deterrence may profits compared with the risks of the venture [37]. For instance, when goods are stolen from cargo transported be achieved by means of community policing. Sherman [40] indicates that paradoxically ‘‘motorized police patrol in supply chains, criminals evaluate the value of the goods when resold on the black market, compared with is a process of merely waiting to respond to crime’’. Hence, the level of vulnerability of cargo and also the efforts the process of moving police officers out of patrol cars that the police will put to deter their actions and pros- opens the possibilities to establish a direct contact with ecute them once arrested [19]. A consequence of this people and by that enhance the knowledge of the crime behaviour is that criminals are likely to attack the problems and ultimately improve crime prevention [43]. weakest links of supply chains [9, 38, 52]. For instance, Reactive tactics fail to proactively prevent crime as they keep police distant from the community. This implies that statistics tell that the securing of terminals causes the increment of incidents during transport or in parking no relationships can be established with people and busi- nesses and consequently the police work to prevent and places [19]. respond to crime is biased [31]. Hence, criminology 2.2 Protection & defence researchers claim that more capital and efforts should be allocated on proactive strategies to deter crimes [6, 7]. The need for security during transport is to prevent the Examples of these strategies may include the usage of loss of the cargo as well as unwanted negative disruption informants, covert surveillance and also partnerships with in the flow of goods [39]. Security may be enhanced by the victims [31]. In particular, by establishing closer rela- means of the combination of preventive measures and tionships with the community, the police may enhance its human and material resources intended to protect capability to (1) diagnose and manage problems, (2) facilitate crime solving and (3) build self-defence capa- transport infrastructure, vehicles, systems and workers against intentional unlawful acts [20]. In [45], physical bilities within the community itself [31]. transport security is categorized as a combination of measures for preventing, detecting and recovering a 2.3.2 Criminal justice efforts supply chain. To support companies willing to protect their assets Arrests and prosecution of criminals seem to have a diverse security certifications have been developed. deterring effect on crime [8]. This reasoning naturally Examples are the authorities’ certifications as the follows the theory of rational choice, according to which, C-TPAT (Customs-Trade Partnership Against Terrorism) criminals trade off the expected profits with the risks. If the in US or the AEO (Authorized Economic Operator) in risks overweigh the profits, then criminals may decide to Europe or business certifications issued by TAPA not commit the crime. Previous research, by means of econometric cross-section techniques, has demonstrated (Transported Assets Protection Association) [9, 36, 38, 39, 52]. that probability of arrest, conviction and punishment (e.g. fines, probation and imprisonment) may negatively affect 2.3 Role of law enforcement agencies crime rates [11]. Becker [5] proves that optimal allocation of criminal justice resources may effectively combat and Criminologists have widely explored the problem of busi- discourage illegal behaviour [5]. Finally, it is important to ness victimization, including the role of law enforcement point out that allocating police and criminal justice, agencies and the factors influencing crime. Business vic- resources should focus on policing actions, corrective ser- timization concerns the victims’ perceptions about how the vices and finally administration of justice functions [7]. business should be operated in crime-free conditions and in particular, how the interaction with the law enforcement 2.3.3 Allocation of resources agencies (LEAs) results into higher protection [44]. Existing literature highlights three effective practices that The amount of resources allocated by the police is usually based on statistics, i.e. the numbers of crimes reported or the LEAs may undertake to protect business: community policing activities, criminal justice efforts and allocation of recorded by the police. The relationship is simple and naı ¨ve resources. at the same time, if crime rates are low, then police budgets 123 148 Logist. Res. (2013) 6:145–157 and resources allocation decline [30]. Criticism has been Figure 1 provides the conceptual model derived from put forward against this approach, since low incidence of theory. crime within a region could be the result of other factors: for instance, higher resource allocation, the socio-eco- nomic characteristics of the area of interest or even the 4 Methodology consequence of the on-going victimization of the business, that is the low trust and confidence that the business sector The methodology is mainly based on an explorative study has towards the police, causing a reduction in reporting. If followed by a survey. Thus, the whole investigation is this is the case, the data could mask an even more serious based upon a combination of qualitative and quantitative problem, where the business has somehow accepted to methods which is a recommended approach within logis- tolerate and deal with the criminals [7]. This was the case tics research [16, 33]. Qualitative unstructured and semi- of East European countries in which public mistrust of structured interviews as well as observations were police and gross misrepresentation of the true crime level exploited to gather data concerning the factors influencing were affecting the low levels of recorded crime [49]. the efforts made by firms to enhance transport security. More specifically, a total of 16 interviews (4 unstructured and 12 semi-structured) with key actors in the transport 3 Research hypotheses security area were performed. The demographic charac- teristics of the interviewed managers as well as the Allocating resources is fundamental to ensure that gov- scheme for the interviews performed are provided in the ernments are capable to deter transport crime, but also to Appendix of this paper. After 12 interviews, data satura- promptly arrest and prosecute criminals. Tulyakov [44] tion occurred. Hence, four additional interviews were sustains that the inefficacy of state law enforcement performed at a later phase to ensure not only data satu- agencies favours the criminal organizations that reside in ration, but also the stability of the data over time [17, 23]. that country and indirectly bring economic losses to the Patterns and themes were identified within the transcribed business. Diverse studies have demonstrated that increas- texts of previous literature, observations and interviews ing police resources may lead to improved crime deter- (ibid). Finally, by means of a systematic process, the rence, arrest and prosecution [2, 4, 6]. However, it is hypotheses concerning the role of the law enforcement highlighted that to ensure its deterrent effects, resources agency were formulated. have to be used for community policing activities, so not only patrolling and waiting to respond methods, but also to 4.1 Instrument establish a direct contact with the community to enhance the understanding of the crime problem and to identify the solutions to adopt. Hence, by applying these theories to the After the explorative study, a first draft of the survey was prepared and submitted to three academics and one transport crime problem, our research hypotheses are the following: Swedish language expert to enhance clarity. Based on the feedbacks, the questionnaire was modified, and some H1 The scarce resource allocation of law enforcement questions rephrased, added or deleted. The new question- agencies affects criminal justice efforts to deter cargo naire was submitted to a group of 10 Swedish industrial crime professionals for a pre-test. This was necessary in order to H2 The scarce resource allocation of law enforcement improve the wording and format of questions, enhance agencies affects the community policing activities comprehension, make the questions easier to answer and driven to improve transport security finally ensure that the items in the sets of questions well represented the constructs. In addition, to ensure the validity of questionnaire, all the questions referred to data from 2009. Hence, data that are not too far in the past and that may be easily accessible by the respondents [27]. The final version of the questionnaire was composed of 10 areas of questions, of which two are of concern for this investi- gation: the demographic characteristics of the respondents and the sets of questions concerning the perception of prosecution, resource allocation and collaboration activities performed by law enforcement agencies. The items repre- Fig. 1 Proposed model about the impact of resource allocation on senting these three constructs were measured on five-point criminal justice efforts and community policing 123 Logist. Res. (2013) 6:145–157 149 Likert scales from 1—Strongly Disagree to 5—Strongly Table 3 Questions to measure the construct of collaboration Agree, with a neutral alternative in the middle. Construct Questions Business Frequency of attendance to policing activities 4.2 Measures policing Security activities enhance security Self-defence capabilities are improved by joining The construct concerning the resources allocated by the security activities law enforcement agency was based on a set of six ques- Policing activities improve collaboration among tions. According to the collected empirical data, transpor- stakeholders tation companies experience the allocation of resources as Importance for establishing a relationship with law fundamental to combat cargo crime. Findings from the enforcement agency interviews and observations tell that the law enforcement Stronger relationship with law enforcement agency agency is not allocating enough resources mostly because improve security security incidents are not often reported by operators. So, this set of questions aims to measure the resource alloca- tion construct from three viewpoints: the first concerns the Finally, six more questions have been developed to measure how firms perceive the business policing activities measurement of the magnitude of resource allocation; the second is the frequency of security incidents reporting; and carried out by the law enforcement agency. Questions included the participation frequency to the activities finally the third aims to measure a combination of the two, high reporting frequency causes higher resource allocation organized by the law enforcement agency, the stimulation (Table 1). perceived to increase security as well as the improvements The construct concerning the criminal justice efforts is to prevent and recover operations after cargo security also measured by means of a set of six questions. The incidents (Table 3). purpose of these questions is to measure the perception of the work done by the criminal justice system to prosecute 4.3 Respondents criminals in terms of punishment degree and time to pro- cess and keep the cargo criminals in custody (Table 2). The transportation companies included in the sampling frame were extracted from the Swedish Business Register database. A first examination of the database revealed that Table 1 Questions to measure the construct of resource allocation 28,250 firms were registered in Sweden in the beginning of Construct Questions 2010. To limit the number of companies to be surveyed as Resource Cargo security frequency reporting to law well as to enhance the comprehension of the questions, it was allocation enforcement decided to exclude two categories: support activities and Law enforcement resource allocation is very good management of terminals and infrastructure. The resulting Law enforcement allocate enough resources to population corresponds to a total of N = 14,801 companies combat cargo crime divided into seven different groups: freight rail transporta- Cargo security reporting increases law enforcement tion, freight road transportation, freight water transportation, efforts freight air transportation, other postal activities, courier Cargo security reporting has high priority activities and newspapers distribution. The optimal sample High cargo security reporting causes higher size to be surveyed was calculated by exploiting Cochran’s resource allocation formula with 95 % confidence level and p = 50 %, the sample size was put in relation with confidence intervals from ±0% to ±10 % [10]. Hence, the survey was sent to 577 Table 2 Questions to measure the construct of Criminal justice companies that were chosen among the groups by means of efforts stratification. 200 companies were proportionally counted in Construct Questions each stratum and randomly extracted from the database. Thereafter, the remaining 377 companies were selected by Criminal justice Effort of justice to punish criminals including all the medium and large companies and by ran- efforts Penalty sentence domly choosing further small companies. Quick arrest and process in court Increased confidence for law enforcement’s 4.4 Data collection efforts Criminals’ return to target The data collection was performed between April and June Rigid criminal’s punishment 2010. The survey questionnaire along with a two page 123 150 Logist. Res. (2013) 6:145–157 Table 4 Demographic data Number of employees 0–49 50–250 [250 Responses Sample Population Freight rail transport 1 4 2 7 7 21 Freight road transportation 386 142 5 181 533 14064 Freight water transportation 8 4 0 5 12 283 Freight air transportation 1 2 0 3 3 29 Other postal activities 1 0 2 3 3 47 Courier activities 9 0 1 2 10 341 Newspaper distribution 0 1 8 2 9 16 Responses 133 62 6 Sample 406 153 18 Population 14630 153 18 4.5 Data analysis cover letter and a prepaid postage return envelope were mailed to the security, risk, transportation and logistics managers of the selected companies. To respect the ano- The statistical methods used in this investigation are based nymity of the answers, a unique code was generated, on multivariate analysis techniques. The general structure assigned to the respondents and printed on the return of the statistical analysis to be performed includes the envelopes. This was also necessary to keep track of the following steps: descriptive statistics, exploratory and responses and limit the postage of reminders [15]. confirmatory factor analysis and structural equation mod- To increase the response rate, the cover letter (1) elling. Before running the analysis, the presence of com- included the logo of the Swedish police, (2) included a mon method bias was checked by performing an un-rotated factor analysis using Kaiser Criterion (Eigen value [ 1). detailed description about how to compile the question- naire, (3) ensured the confidentiality of the answers and (4) This analysis revealed the existence of 18 distinct factors that accounted for 75.3 % of the variance. In particular, it promised an executive summary of the results. Reminder letters, together with a copy of the questionnaire and a was noticed that the first factor accounted for only 27.9 % prepaid postage return envelope were sent to non-respon- of the variance. Hence, since a single factor did not appear dents 2 weeks after the deadline. In addition, follow-up in the analysis as well as the first factor did not account for telephone calls were performed (1) to enhance the quality the most of the variance, the absence of common method of the answers and (2) to obtain additional responses [15]. bias may be assumed [35]. In addition, in this investigation, A total of 47 companies were contacted by phone during one-tailed tests are used and the level of significance has been set to \0.05. All the statistical analyses have been this process. The reasons for not answering the question- naire were in order, lack of time, internal policy, difficult to carried out with SPSS v. 15.0 and LISREL 8.80. find the right competence, not relevant (this was especially true for recycling and low value goods companies). In only 4.5.1 Descriptive statistics one case, a manager could not access data from 2009 because she was recently unemployed. Finally, in other In this phase, the following analysis was performed: cases, the company had bankrupted or was sold. At the end missing value analysis and calculation of numerical sum- of the data collection, a total of 210 questionnaires were mary measures as means and standard deviations. received which corresponds to a response rate of about 36.4 %. By performing a missing value analysis, it was 4.5.2 Exploratory and confirmatory factor analysis (EFA decided to keep only the questionnaires with less than 17 and CFA) missing answers. This implies that 35 questionnaires were removed from the sample for subsequent data analysis. The By performing an exploratory factor analysis (EFA), the questions in the survey have been put together in summated demographic characteristics of the sample are reported in Table 4, together with information about the population scales [24]. The EFA performed within this investigation is based on a principal component analysis (PCA) with and sample size in each of the strata, as well as the amount of responses. orthogonal rotation (Varimax). The correlation coefficients 123 Logist. Res. (2013) 6:145–157 151 as well as the determinant of the correlation matrix have (supervisors and other colleagues), 1 language expert and 1 been screened to detect multicollinearity problems and administration officer. Additionally, the instrument was avoid biases in the reduced data [24]. The adequacy of the also pretested using 10 professional experts working in the sample size as well as the magnitude of correlations field of transportation and logistics security. Comments and between the items (necessary conditions for PCA) is feedbacks from these two reviews have been used to assessed, respectively, with the Kaiser–Meyer–Olkin enhance the accuracy of the questions. (KMO) measure and the Bartlett’s test of sphericity [24]. In this investigation, internal consistency has been Finally, the reliability degree of the related constructs has checked by means of a factor analysis as well as by cal- been checked by performing a reliability analysis and by culating and reporting the Cronbach’s a. The reliability of consequently examining the values of the Chronbach’s this survey has also been measured by using the extrapo- alpha [24]. lation method, which is built upon the assumption that A confirmatory factor analysis (CFA) has been run to respondents answering less readily are more like non- determine how well the measured variables represented the respondents [3]. Hence, in this investigation, by comparing constructs. This technique is different from the EFA since early and late responses, no significant differences were the number of constructs, as well as the relationships found, either in terms of the outcome variables nor in terms between the items and the constructs are established by the of the demographic characteristics, which indicates the researcher [24]. The analysis of the model fit indices was absence of non-response bias [3]. exploited to establish construct validity and unidimen- sionality. Convergent validity was assessed by examining the value of standardized coefficients, t values for the 5 Interview results individual paths, construct reliability (CR) and average variance extracted (AVE) [24]. Discriminant validity was The relevance of the law enforcement agency to prevent as estimated by developing additional measurement models in well to support operators in recovering their shipments was which the correlation of any two constructs under exami- teased out during two security workshops held in Sweden. nation was set to 1.0. Thereafter, differences of the v During these events, police representatives encouraged values for the fixed and free solutions were examined to transport companies to report cargo theft and improve assess the distinctiveness of the two constructs [24]. collaboration with the law enforcement agency. One of the main findings during the workshop was that 4.5.3 Hypothesis testing the resources allocated by the Swedish law enforcement agency are scarce and consequently the deterrent effect on The hypothesized structural equation model illustrated in crime is minimal. In particular, the participants criticized Fig. 1 was tested using LISREL 8.80. The model used the the law enforcement agency since they often do not pri- resource allocation construct as the exogenous variable and oritize cargo theft. According to three of the respondents, the criminal justice efforts and business policing constructs the problem faced today is that the amount of received theft as the endogenous variables. The model parameters were claims from transport operators is not high enough to jus- estimated using the method of maximum likelihood, which tify an increment of resources to combat criminals. is set as default in the software [29]. Within this stage, the Transport operators are afraid to show their brands in theft values of model fit indices were checked to validate whe- statistics. In addition, they feel that this is only an admin- ther the model fits the data, and significance was deter- istrative cost that will rarely lead to cargo recovery. mined by examining the t test values at p \ 0.05 level. Transport operators are afraid to show their brand names in theft statistics and therefore they do not 4.6 Validity and reliability announce the problem to the police that in its turn does not have the real picture of the situation. To ensure the validity of the questionnaire, the survey indicators used to measure the theoretical constructs were Operators are not claiming enough, thus we cannot scrutinized by academics. The data collected refer to 2009, allocate resources adequately. that is, believed not to be too far in the past and therefore Our company has a good cooperation with the easily accessible by respondents. Moreover, the survey was national law enforcement agency. However, we know targeted at individuals that possessed the right competence and experience to provide with credible and accurate answers. Finally, to enhance the validity of this investiga- Insurance company seminar, Gothenburg, Sweden, March 2008. tion, the developed survey instrument was thoroughly ¨ ¨ Workshop on Transportation Security, Jonkoping, Sweden, Novem- pretested using numerous academic professionals ber 2007. 123 152 Logist. Res. (2013) 6:145–157 that many thefts are not reported by other companies. Table 5 Summary of variables measuring the influence of law enforcement agency (N = 175) This makes it hard to combat cargo theft. Mean SD Other results from the interviews indicate that operators perceive existing laws to prosecute criminals as too weak. Effort of justice to punish criminals 2.63 0.95 As a consequence, it is not only difficult to arrest criminals, Penalty sentence 2.74 1.08 but also to keep them in custody. Quick arrest and process in court 2.64 1.14 Increased confidence for law enforcement’s efforts 2.94 1.06 Criminals attack according to a trade-off between Criminals’ return to target 2.79 1.05 risks and revenues. The situation today is that dis- Rigid criminals punishment 2.56 1.09 tribution chains are easy and profitable targets. At the High security reporting frequency 3.27 1.11 same time, prosecution is not severe enough to dis- Efforts to arrest criminals 2.84 1.05 courage perpetrators. Law enforcements’ resource allocation 2.72 1.13 Once criminals are captured, we can keep them in Confidence for prosecution after reporting 2.98 1.07 custody for a limited amount of time. So they are Security reporting highest priority 3.18 1.10 back in business after only few months. Reporting incidents increase police’s resource 2.94 1.05 allocation Prosecution should be more severe to discourage Always joined security activities 2.50 1.15 criminals attacking our distribution chains. Security activities enhance security 2.66 1.19 Finally, two respondents also say that to reduce the Security knowledge is improved by joining security 2.82 1.24 increase in cargo theft experienced during recent years, activities the Swedish law enforcement agency is today working with Security activities improve collaboration among 2.75 1.20 policing activities to increase awareness about the cargo stakeholders Importance of collaboration with law enforcement 2.91 1.26 security problem. agency The activities organized by the law enforcement Collaboration with law enforcement agency improve 2.79 1.17 agency have contributed to increase awareness of the security cargo theft problem Thanks to the workshops, we have had the possibility to come closer to the law enforcement agency and of criminal punishment (M = 2.56, SD = 1.09). The strengthen collaboration variables with the highest scores are the frequency to report security incidents (M = 3.27, SD = 1.11) as well as the high priority given by organizations to report security 6 Survey results incidents (M = 3.18, SD = 1.10). The data collected is analysed using four steps. First, the 6.2 Factor and reliability analysis descriptive statistics of the items used to measure the A PCA with Varimax rotation was performed to identify constructs is reported. Next, results from EFA and CFA are reported in order (1) to identify underlying dimensions different dimensions in the variables used to measure the influence of the law enforcement agency. The correlation behind the variables used in the four areas of questions and (2) to measure how well the items identified in the EFA coefficients suggest that multicollinearity is not an issue. The Kaiser–Meyer–Olkin measure (KMO = 0.90, mar- measure the constructs. Finally, the hypothesized structural model in Fig. 1 is tested. vellous according to Kaiser, 1974) indicates the suitability of the sample size for the factor analysis. 6.1 Descriptive statistics The Bartlett’s test of sphericity is significantly large (v (153) = 2581.3, p \ 0.01) which implies that the cor- relation matrix is not an identity matrix (the correlations The patterns of the indicators used to measure the factors influencing security were also inspected. All the variables’ between items were sufficiently large). Examining the scree plot, and following the Kaiser’s criterion, a total of scores range between 2, Disagree and about 3.27, (3 Nei- ther Agree nor Disagree) (Table 5). However, 16 of the 18 three factors explaining 72.3 % of the variance were extracted. The interpretation of the variables clustered in variables used are below 3. The variables that score lowest are those concerning the frequency to join community the rotated component matrix (Table 9), results in the policing activities (M = 2.5; SD = 1.15) and the severity following factors: 123 Logist. Res. (2013) 6:145–157 153 • Component 1. Criminal justice efforts (CJE). 6.3 Hypotheses testing • Component 2. Community policing activities (CPA). • Component 3. Resource allocation (RA). As indicated earlier, the hypothesized structural model was tested using LISREL. In particular, given the satisfactory Table 9 also presents the items’ communalities after measurement results, the summated scores were used to extraction as well as the Cronbach’s alpha of the three measure the model’s latent constructs. The model param- components. The majority of the items have communalities eters were estimated using the method of maximum like- greater than 0.7. In addition, the average communality is lihood. The values for the model fit indices indicate that the 0.72 which confirms the correct adoption of the Kaiser’s model fits the data sufficiently well (NNFI = 0.95, criterion. The Cronbach’s alphas of the three factors were CFI = 0.96, root mean square residual [RMSR] = 0.07, all above 0.8 which verifies the high reliability of the scales root mean square error of approximation [RMSEA] = 0.1 identified with the factor analysis. and v [NC] = 2.76). The t tests show that both of the two Confirmatory factor analysis (CFA) was run to further hypothesized relationships were found to be significant at establish unidimensionality and construct validity. The 0.01 level (Table 9). More specifically, the path from values for the fit indices show that the model fits the data resource allocation to prosecution degree is statistically sufficiently well (NNFI = 0.94, CFI = 0.96, root mean significant (b = 0.19; t = 4.42; p \ 0.01). Likewise, the square residual [RMSR] = 0.08, root mean square error of path from resource allocation to collaboration activities is approximation [RMSEA] = 0.1 and v [NC] = 3.44). also significant (b = 0.78, t = 7.29, p \ 0.01). Total Confirmatory factor analysis was also used to assess effects of the model are reported in Table 7. discriminant validity. Significant differences of the v values for the fixed and free solutions testify the dis- tinctiveness of the constructs (Table 6). In addition, the 7 Discussion examination of the confidence intervals that was set to be equal to plus or minus two standard errors of the The data analysed in this paper (both from the interview correlation coefficient of the pair of constructs, do not and the survey studies) recognize the important role of the include the value of 1. Hence, discriminant validity was law enforcement agencies in transport security. Our results ensured. are in line with theories from criminology that claim the importance of allocating more resources to community policing and the criminal justice system to more effectively deter business crime. In this paper, we test these theories in Table 6 Assessment of discriminant validity the context of transport security, that is, theft crime per- CJE RA CPA petrated against cargo moving in supply chains and dem- onstrate that Swedish transport companies perceive the Criminal justice efforts – following: Resource allocation 162.32 – 0.79–0.90 (1) The increment of resources allocated by the law Community policing activities 1144.17 499.38 – enforcement agencies improves the efforts put by 0.26–0.51 0.36–0.59 criminal justice to prosecute criminals (H1). First row v differences between the fixed and free solution [signifi- (2) The increment of resources allocated by law enforce- cant at p \ 0.01 (1 df)] ment agencies results in improved community polic- Second row confidence interval (none of them include 1.00) ing activities (H2). Our results show that in Sweden, the resource allocation of law enforcement agencies is generating results in terms of better prosecution and relationship with the transport Table 7 Indirect and total effects industry. However, it is important to notice that the Exogenous Endogenous variables descriptive statistics of the data shows that many of the variable Criminal justice Community policing variables (16 of 18) used in the questionnaire scored below efforts (CJE) activities (CPA) 3(neither agree nor disagree). This implies that despite the Total Total positive relationships between the survey’s parameters, Resource 0.83* (0.19) 0.47* (0.78) transport companies are not fully satisfied with the current allocation (RA) levels of allocated resources, the on-going community * t values significant at p B 0.01 policing activities and criminal justice efforts. 123 154 Logist. Res. (2013) 6:145–157 As a consequence, we claim that more resources should depict a generic dissatisfaction towards the work that is be allocated to deter cargo crime in Sweden. In particular, being done by the law enforcement agency (M = 2.82, these resources should aim to stimulate transport compa- SD = 1.1). Also, looking at the averages of the con- nies joining policing activities, facilitate crime reporting, structs used in the analysis, it may be stated that the streamline procedures to arrest and quickly prosecute respondents seem (1) to not properly be satisfied with the criminals, and to review the legal system especially in criminal justice efforts to prosecute criminals, (2) to not terms of punishments for crimes in this area. It has been to be convinced that the law enforcement is allocating demonstrated that in countries where law enforcement enough resources to fight cargo crime and (3) to not agencies are weak, the business sector may lose confidence properly join policing activities. in the authorities. The major risk is that discouraged The application of Structural Equation Modelling tech- companies stop reporting crime which can lead to a dan- niques confirms the high impact of resource allocation on gerous cycle, that is, the reduction in crime reporting may criminal justice efforts, that is, the proper prosecution of lead to a reduction in resources to deter crime and prose- cargo crime. Accordingly, if resources are adequately cute criminals. allocated by the law enforcement agencies, then criminals Hence, if immediate changes are not implemented, then would be properly prosecuted and most of all cargo crime cargo crime may substantially increase, resulting in deterred. Additionally, our results show that the allocation potentially considerable financial losses for the transport of resources made by the law enforcement agencies posi- industry. Furthermore, this may have a negative impact on tively affects the policing activities to help transport the economic growth of a country, especially considering companies protecting their assets. the fact that the majority of transport companies are small/ From a scientific viewpoint, this investigation contrib- medium-sized enterprises and the risk of them going utes to existing literature by showcasing the importance of bankrupt, with just few incidents, is quite high. Another the role of the law enforcement agencies in transport consequence is that companies may consider security los- security. From a practical viewpoint, transport and logistics ses as part of the costs for doing business. Accordingly, managers are recommended to strengthen their relationship they might start to make extended usage of strategies to with the police especially in terms of correct and promptly absorb losses internally, for example, insurances and risk performed crime reporting. Otherwise the risk is that the sharing in contracts’ clauses. While the transport compa- law enforcement agencies will not be able to allocate nies might find ways to cover the losses, organized crime resources to fight cargo criminals and play a key role in (1) may see this as an opportunity to increase their activities in deterring attacks, (2) prosecuting organized crime, and the transport industry. Obviously, this is not an acceptable finally (3) organizing policing activities. In the remainder of the section, we present some key scenario, and thus actions are required—especially given the potentially negative societal consequences. limitations with the ambition of providing potential ave- nues for future research. The first limitation concerns the measures developed for the three constructs: resource 8 Conclusion allocation, community policing activities and criminal justice efforts. Given that these are newly developed scales, In this paper, we combine explorative investigation along future research needs to validate the indicators used in this with survey-based study to understand the importance of investigation and also develop robust indicators to measure the role of law enforcement agencies in transport security. these constructs. Second, the results of this investigation Theories from criminology are used to develop two main may be generalized only to the transportation sector in hypotheses concerning the relationship between the Sweden (according to [10] with a confidence level between resources allocated by the law enforcement agency and (1) ±7 % and ±8 %).To extend the external validity of the the community policing activities and (2) the criminal findings from this study, we recommend future research to justice efforts. To test these hypotheses, a questionnaire replicate this study using samples from other countries. was developed and sent to 577 physical distribution carri- ers operating in Sweden. The survey had a final response rate of 36.4 % (210 questionnaires). Appendix Examining the arithmetic average of all the items used to measure the three constructs, it is possible to See Tables 8 and 9. 123 Logist. Res. (2013) 6:145–157 155 Table 8 Demographic characteristics of the respondents Industry Position Respondent 1 Electronics Manufacturer Security Manager Respondent 2 Transportation Lawyer Respondent 3 Road Carrier Security Manager Respondent 4 Logistics Service Provider Global Security Manager Respondent 5 Food Products Security Manager Respondent 6 Pharmaceutical Security Manager Respondent 7 Cash Transportation Security Manager Respondent 8 Law Enforcement Agency Police Inspector Respondent 9 Security Certification International Sales Manager Respondent 10 Logistics Service Providers Regional Security Manager Respondent 11 Security Solution Provider Commercial Director Respondent 12 Road Carrier CEO Respondent 13 Security Solution Provider CEO Respondent 14 Shipping Company Senior Director Respondent 15 Shipping Company Corporate Security Manager Respondent 16 Insurance Company Claims Manager Table 9 Summary of EFA and SEM fit indices (N = 175) Item Component Measurement model CJE RA CPA Communality Std. Coefficient t value Effort of Justice to punish criminals 0.87 0.16 0.13 0.79 0.8 13.49 Quick arrest and process in court 0.81 0.13 0.22 0.73 0.77 10.61 Rigid criminals punishment 0.81 0.12 0.29 0.75 0.94 13.1 Slow criminals’ return to target 0.78 0.15 0.24 0.69 0.83 11.97 Penalty sentence 0.73 0.15 0.17 0.58 0.84 12.57 Increased confidence for law enforcement’s efforts 0.71 0.19 0.35 0.66 0.93 13.88 Law enforcements’ resource allocation 0.64 0.17 0.48 0.68 0.84 11.95 Efforts of law enforcement agency to arrest criminals 0.58 0.19 0.56 0.69 0.78 10.34 Security Knowledge is improved by joining security activities 0.13 0.91 0.16 0.88 0.62 7.64 Security activities enhance security 0.12 0.90 0.15 0.84 0.87 13.13 Security activities improve collaboration among stakeholders 0.25 0.85 0.09 0.79 0.92 12.89 Importance of collaboration with law enforcement agency 0.00 0.85 0.17 0.75 0.84 12.26 Always joined security activities 0.20 0.84 0.03 0.75 0.97 13.62 Collaboration with law enforcement agency improve security 0.22 0.82 0.10 0.74 1.09 15.79 Security reporting highest priority 0.29 0.15 0.77 0.70 1.17 16.49 High security reporting frequency 0.17 0.02 0.77 0.62 1.03 14.11 Confidence for proper prosecution after reporting 0.41 0.18 0.71 0.71 1.00 12.43 Reporting incidents increase police’s resource allocation 0.43 0.38 0.59 0.67 0.93 12.48 Eigenvalues 5.10 4.86 3.04 % of variance 28.37 27.03 16.9 a 0.93 0.94 0.83 CR 0.92 0.83 0.85 AVE 0.71 0.67 0.82 Extraction method, PCA; Rotation method, Varimax with Kaiser Normalization Model fit indices: normed v [NC] = 3.44, Goodness of Fit Index = 0.82 \ (0.90), adjusted goodness of fit = 0.72 (\0.80), non-normed fit index = 0.94 (C0.90), root mean square residual = 0.08 (B0.10), root mean square error of approximation = 0.1 (B0.10). 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The role of the law enforcement agencies in transport security, a survey with Swedish operators

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Springer Journals
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Copyright © 2013 by Springer-Verlag Berlin Heidelberg
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Engineering; Engineering Economics, Organization, Logistics, Marketing; Logistics; Industrial and Production Engineering; Simulation and Modeling; Operation Research/Decision Theory
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10.1007/s12159-013-0102-8
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Logist. Res. (2013) 6:145–157 DOI 10.1007/s12159-013-0102-8 OR IGINAL PAPER The role of the law enforcement agencies in transport security, a survey with Swedish operators • • Luca Urciuoli Anthony Paulraj Dag Na ¨ slund Received: 20 September 2012 / Accepted: 10 April 2013 / Published online: 23 April 2013 Springer-Verlag Berlin Heidelberg 2013 Abstract Transport security, that is, the protection allocation of law enforcement agencies’ resources on against antagonistic attacks in form of terrorism, theft, criminal justice efforts as well as on community policing counterfeiting, piracy etc. has become a major concern for activities to deter crime. Using Structural Equation Mod- managers during the last years. The consequences of elling techniques, two hypotheses are empirically tested on security incidents include economic losses for industries, a sample of 577 Swedish transport operators. The results but in case of terror attacks may also affect society in unveil that both the relationships are statistically signifi- general. If transport networks are not adequately protected, cant. Finally, implications for managers and practitioners consumable products (e.g. food, pharmaceuticals) could be are discussed. counterfeited or contaminated and smuggled into a country, giving rise to death or diseases. Today, to enhance the Keywords Logistics security  Supply chain security protection of transport networks, companies have wide Law enforcement agency  Transport security  Community access to handbooks, advanced security technologies or policing  Criminal justice efforts certification programs (e.g. TAPA EMEA, ISO28001, C-TPAT or AEO, etc.). Despite this, statistics indicate that transport networks are low-risk/high-revenue targets, and 1 Introduction therefore security needs to be enhanced. The purpose of this paper is to highlight the role played by the law Supply chains are expected to perform in accordance to enforcement agencies in transport security. More specifi- European laws, for example, freedom of competition, cally, this paper strives to demonstrate the influence of the immunity of assets, copyright protection, safety of trans- port operators and managers etc. However, available sta- tistics give indication that very often the supply chain L. Urciuoli (&) business is a constant victim of actions perpetrated by Cross-border Research Association, Supply Chain Security and Logistics Visibility, Lausanne, Switzerland organized crime as for instance, fraud, theft, corruption, e-mail: luca.urciuoli@gmail.com violence etc. [26, 46]. These incidents are not often pub- licly reported by firms because of the negative effects they L. Urciuoli may have on the brand image of the organizations involved Department of Industrial Management and Logistics, Engineering Logistics, Lund University, Lund, Sweden [18]. However, the magnitude of their frequency is so high and the related consequences so severe that many supply A. Paulraj chain firms have indicated ‘‘security’’ as one of their Department of Entrepreneurship and Relationship Management, management’s top priorities to work on within the next University of Southern Denmark, Kolding, Denmark e-mail: ap@sam.sdu.dk years [41]. It has been demonstrated, in many contexts, that the D. Naslund insecurity of supply chains has severe consequences for Department of Management, Coggin College of Business, business and society. Existing figures, which do not take University of North Florida, Jacksonville, FL, USA into account the disruptive effect of failed deliveries in e-mail: dnaslund@unf.edu 123 146 Logist. Res. (2013) 6:145–157 supply chains, show amounts of stolen cargo in US enforcement agencies. In particular, it is pointed out that between $10 and $30 billion and in Europe at about €8.2 the business may manage to more effectively and pro- billion [2, 21]. It has also been estimated that in Europe actively deal with crime through closer collaboration with alone, $176 billion of goods have been counterfeited in the Law Enforcement Agencies (LEAs) [6, 7]. In these 2005 [34]. However, costs of security incidents may be studies very little focus is given on the supply chain related to disruption costs and therefore to shipment delays, business. At the same time, other research in the supply lost sales and unsatisfied customer demand [1, 13, 47]. For chain management area have pointed out that the interac- instance, in case of theft, a disruption will be originated tion of supply chain companies with authorities as customs because the goods disappear while in transit and will not be administrations may influence security (e.g. security certi- delivered on time to the consignee. Delays or losses may be fications) [12, 14, 22, 48, 50]; however, none of them also experienced in case suspicious elements (e.g. coun- undertake an empirical analysis to understand the role of terfeits or contraband) are detected by Customs officers; LEAs in supply chains. hence, containers could be stopped, inspected and eventu- Hence, the purpose of this article is to explore the role of ally seized. Finally, other costs of security incidents law enforcement agencies in supply chains. In particular, include the following[25]: increased insurance premiums, by means of interviews and a survey study performed in enhanced security protection, internal audit activities, Sweden, we aim to understand how the transport sector investigation and prosecution of suspects, increased selling evaluates the efforts that the law enforcement agencies are prices and weakened competitive advantage, business putting to deter security incidents. reputation, deterioration in quality of service, threat to the This article is split into 8 sections: after the introduction survival of the business etc. the following two sections expound the theoretical frame- A worrying aspect of the insecurity of supply chains work and the research hypotheses to be tested in this study. concerns the possible societal repercussions. Direct con- The fourth section describes the methodological steps to sequences may concern the safety of operators and our perform the explorative study and the survey study. Next, communities. During an attack to a terminal or transport the results of the interviews and the survey including vessel, drivers or terminal operators may be killed, threa- descriptive statistics, factor and confirmatory analysis and tened or severely injured [28]. Terrorists may manage to hypotheses testing are discussed in section five and six. contaminate food, pharmaceutical, disrupt critical supplies While section seven discusses the results, section eight or even smuggle weapons or terrorists and thereby expose presents the conclusions from our study as well as impli- societies to terror attacks, (e.g. causing fear, injuries, death, cations for managers and practitioners. environmental contamination etc.) [39]. Indirect conse- quences include the fortification of criminal organizations that are able to make their revenues grow while encoun- 2 Theoretical framework tering minimal penalties. As criminology experts indicate ‘‘the real harm done by organized crime comes not from As part of the theoretical framework, we summarize pre- selling inherently illegal goods and services but from the vious research, relevant for this paper, within the topics of way the profits are subsequently invested’’ [32]. It has been transport security, protection and defence and the role of demonstrated that when criminals enter the legal business, law enforcement agencies. public sector corruption increases so as unfair business competition, a clear damage to society and economic 2.1 Transport security growth of a country [31]. Looking at previous research dealing with supply chain In this paper, transport security threats are interpreted as or logistics security, it is possible to deduce that security is crime events that are perpetrated from individuals out- an important source of risk to be considered by transport side or inside transport companies, that is, antagonistic and risk managers [39]. Supply chain risk management attacks. Antagonistic attacks have been widely studied researchers recommend identifying drivers of risks in within the criminology discipline and only recently have supply chains, in order to optimize risk mitigation strate- come to the attention of transport and supply chain gies and consequently moderate the negative outcomes of researchers. Present research has pointed out the corre- disruptions [51]. In addition, more attention should be put spondence between criminology theories and transport/ to understand what is driving managers’ efforts to manage supply chain security [19]. According to the elements of risks [42]. To our knowledge, very little has been done on crime theory, a crime against a supply chain is com- this topic. Other literature from criminology has investi- mitted whenever three elements converge: (1) the per- gated the nature and extent of business crime and more petrator, (2) the target and (3) lack of proper security. In precisely the interaction between the business and the law addition, the crime displacement theory states that 123 Logist. Res. (2013) 6:145–157 147 criminals make rational choices depending on a sub- 2.3.1 Community policing activities jective estimation of the profits and efforts required to commit the crime (i.e. the level of protection of the The traditional approach that the police use to prevent and targets and prosecution risks). Very often, supply chains control crime is based on reactive tactics as random patrolling, rapid response to emergency calls and retro- are targeted by criminals as the result of a rational decision based mainly on two parameters: the expected spective criminal investigations [31]. However, existing research has pointed out that better crime deterrence may profits compared with the risks of the venture [37]. For instance, when goods are stolen from cargo transported be achieved by means of community policing. Sherman [40] indicates that paradoxically ‘‘motorized police patrol in supply chains, criminals evaluate the value of the goods when resold on the black market, compared with is a process of merely waiting to respond to crime’’. Hence, the level of vulnerability of cargo and also the efforts the process of moving police officers out of patrol cars that the police will put to deter their actions and pros- opens the possibilities to establish a direct contact with ecute them once arrested [19]. A consequence of this people and by that enhance the knowledge of the crime behaviour is that criminals are likely to attack the problems and ultimately improve crime prevention [43]. weakest links of supply chains [9, 38, 52]. For instance, Reactive tactics fail to proactively prevent crime as they keep police distant from the community. This implies that statistics tell that the securing of terminals causes the increment of incidents during transport or in parking no relationships can be established with people and busi- nesses and consequently the police work to prevent and places [19]. respond to crime is biased [31]. Hence, criminology 2.2 Protection & defence researchers claim that more capital and efforts should be allocated on proactive strategies to deter crimes [6, 7]. The need for security during transport is to prevent the Examples of these strategies may include the usage of loss of the cargo as well as unwanted negative disruption informants, covert surveillance and also partnerships with in the flow of goods [39]. Security may be enhanced by the victims [31]. In particular, by establishing closer rela- means of the combination of preventive measures and tionships with the community, the police may enhance its human and material resources intended to protect capability to (1) diagnose and manage problems, (2) facilitate crime solving and (3) build self-defence capa- transport infrastructure, vehicles, systems and workers against intentional unlawful acts [20]. In [45], physical bilities within the community itself [31]. transport security is categorized as a combination of measures for preventing, detecting and recovering a 2.3.2 Criminal justice efforts supply chain. To support companies willing to protect their assets Arrests and prosecution of criminals seem to have a diverse security certifications have been developed. deterring effect on crime [8]. This reasoning naturally Examples are the authorities’ certifications as the follows the theory of rational choice, according to which, C-TPAT (Customs-Trade Partnership Against Terrorism) criminals trade off the expected profits with the risks. If the in US or the AEO (Authorized Economic Operator) in risks overweigh the profits, then criminals may decide to Europe or business certifications issued by TAPA not commit the crime. Previous research, by means of econometric cross-section techniques, has demonstrated (Transported Assets Protection Association) [9, 36, 38, 39, 52]. that probability of arrest, conviction and punishment (e.g. fines, probation and imprisonment) may negatively affect 2.3 Role of law enforcement agencies crime rates [11]. Becker [5] proves that optimal allocation of criminal justice resources may effectively combat and Criminologists have widely explored the problem of busi- discourage illegal behaviour [5]. Finally, it is important to ness victimization, including the role of law enforcement point out that allocating police and criminal justice, agencies and the factors influencing crime. Business vic- resources should focus on policing actions, corrective ser- timization concerns the victims’ perceptions about how the vices and finally administration of justice functions [7]. business should be operated in crime-free conditions and in particular, how the interaction with the law enforcement 2.3.3 Allocation of resources agencies (LEAs) results into higher protection [44]. Existing literature highlights three effective practices that The amount of resources allocated by the police is usually based on statistics, i.e. the numbers of crimes reported or the LEAs may undertake to protect business: community policing activities, criminal justice efforts and allocation of recorded by the police. The relationship is simple and naı ¨ve resources. at the same time, if crime rates are low, then police budgets 123 148 Logist. Res. (2013) 6:145–157 and resources allocation decline [30]. Criticism has been Figure 1 provides the conceptual model derived from put forward against this approach, since low incidence of theory. crime within a region could be the result of other factors: for instance, higher resource allocation, the socio-eco- nomic characteristics of the area of interest or even the 4 Methodology consequence of the on-going victimization of the business, that is the low trust and confidence that the business sector The methodology is mainly based on an explorative study has towards the police, causing a reduction in reporting. If followed by a survey. Thus, the whole investigation is this is the case, the data could mask an even more serious based upon a combination of qualitative and quantitative problem, where the business has somehow accepted to methods which is a recommended approach within logis- tolerate and deal with the criminals [7]. This was the case tics research [16, 33]. Qualitative unstructured and semi- of East European countries in which public mistrust of structured interviews as well as observations were police and gross misrepresentation of the true crime level exploited to gather data concerning the factors influencing were affecting the low levels of recorded crime [49]. the efforts made by firms to enhance transport security. More specifically, a total of 16 interviews (4 unstructured and 12 semi-structured) with key actors in the transport 3 Research hypotheses security area were performed. The demographic charac- teristics of the interviewed managers as well as the Allocating resources is fundamental to ensure that gov- scheme for the interviews performed are provided in the ernments are capable to deter transport crime, but also to Appendix of this paper. After 12 interviews, data satura- promptly arrest and prosecute criminals. Tulyakov [44] tion occurred. Hence, four additional interviews were sustains that the inefficacy of state law enforcement performed at a later phase to ensure not only data satu- agencies favours the criminal organizations that reside in ration, but also the stability of the data over time [17, 23]. that country and indirectly bring economic losses to the Patterns and themes were identified within the transcribed business. Diverse studies have demonstrated that increas- texts of previous literature, observations and interviews ing police resources may lead to improved crime deter- (ibid). Finally, by means of a systematic process, the rence, arrest and prosecution [2, 4, 6]. However, it is hypotheses concerning the role of the law enforcement highlighted that to ensure its deterrent effects, resources agency were formulated. have to be used for community policing activities, so not only patrolling and waiting to respond methods, but also to 4.1 Instrument establish a direct contact with the community to enhance the understanding of the crime problem and to identify the solutions to adopt. Hence, by applying these theories to the After the explorative study, a first draft of the survey was prepared and submitted to three academics and one transport crime problem, our research hypotheses are the following: Swedish language expert to enhance clarity. Based on the feedbacks, the questionnaire was modified, and some H1 The scarce resource allocation of law enforcement questions rephrased, added or deleted. The new question- agencies affects criminal justice efforts to deter cargo naire was submitted to a group of 10 Swedish industrial crime professionals for a pre-test. This was necessary in order to H2 The scarce resource allocation of law enforcement improve the wording and format of questions, enhance agencies affects the community policing activities comprehension, make the questions easier to answer and driven to improve transport security finally ensure that the items in the sets of questions well represented the constructs. In addition, to ensure the validity of questionnaire, all the questions referred to data from 2009. Hence, data that are not too far in the past and that may be easily accessible by the respondents [27]. The final version of the questionnaire was composed of 10 areas of questions, of which two are of concern for this investi- gation: the demographic characteristics of the respondents and the sets of questions concerning the perception of prosecution, resource allocation and collaboration activities performed by law enforcement agencies. The items repre- Fig. 1 Proposed model about the impact of resource allocation on senting these three constructs were measured on five-point criminal justice efforts and community policing 123 Logist. Res. (2013) 6:145–157 149 Likert scales from 1—Strongly Disagree to 5—Strongly Table 3 Questions to measure the construct of collaboration Agree, with a neutral alternative in the middle. Construct Questions Business Frequency of attendance to policing activities 4.2 Measures policing Security activities enhance security Self-defence capabilities are improved by joining The construct concerning the resources allocated by the security activities law enforcement agency was based on a set of six ques- Policing activities improve collaboration among tions. According to the collected empirical data, transpor- stakeholders tation companies experience the allocation of resources as Importance for establishing a relationship with law fundamental to combat cargo crime. Findings from the enforcement agency interviews and observations tell that the law enforcement Stronger relationship with law enforcement agency agency is not allocating enough resources mostly because improve security security incidents are not often reported by operators. So, this set of questions aims to measure the resource alloca- tion construct from three viewpoints: the first concerns the Finally, six more questions have been developed to measure how firms perceive the business policing activities measurement of the magnitude of resource allocation; the second is the frequency of security incidents reporting; and carried out by the law enforcement agency. Questions included the participation frequency to the activities finally the third aims to measure a combination of the two, high reporting frequency causes higher resource allocation organized by the law enforcement agency, the stimulation (Table 1). perceived to increase security as well as the improvements The construct concerning the criminal justice efforts is to prevent and recover operations after cargo security also measured by means of a set of six questions. The incidents (Table 3). purpose of these questions is to measure the perception of the work done by the criminal justice system to prosecute 4.3 Respondents criminals in terms of punishment degree and time to pro- cess and keep the cargo criminals in custody (Table 2). The transportation companies included in the sampling frame were extracted from the Swedish Business Register database. A first examination of the database revealed that Table 1 Questions to measure the construct of resource allocation 28,250 firms were registered in Sweden in the beginning of Construct Questions 2010. To limit the number of companies to be surveyed as Resource Cargo security frequency reporting to law well as to enhance the comprehension of the questions, it was allocation enforcement decided to exclude two categories: support activities and Law enforcement resource allocation is very good management of terminals and infrastructure. The resulting Law enforcement allocate enough resources to population corresponds to a total of N = 14,801 companies combat cargo crime divided into seven different groups: freight rail transporta- Cargo security reporting increases law enforcement tion, freight road transportation, freight water transportation, efforts freight air transportation, other postal activities, courier Cargo security reporting has high priority activities and newspapers distribution. The optimal sample High cargo security reporting causes higher size to be surveyed was calculated by exploiting Cochran’s resource allocation formula with 95 % confidence level and p = 50 %, the sample size was put in relation with confidence intervals from ±0% to ±10 % [10]. Hence, the survey was sent to 577 Table 2 Questions to measure the construct of Criminal justice companies that were chosen among the groups by means of efforts stratification. 200 companies were proportionally counted in Construct Questions each stratum and randomly extracted from the database. Thereafter, the remaining 377 companies were selected by Criminal justice Effort of justice to punish criminals including all the medium and large companies and by ran- efforts Penalty sentence domly choosing further small companies. Quick arrest and process in court Increased confidence for law enforcement’s 4.4 Data collection efforts Criminals’ return to target The data collection was performed between April and June Rigid criminal’s punishment 2010. The survey questionnaire along with a two page 123 150 Logist. Res. (2013) 6:145–157 Table 4 Demographic data Number of employees 0–49 50–250 [250 Responses Sample Population Freight rail transport 1 4 2 7 7 21 Freight road transportation 386 142 5 181 533 14064 Freight water transportation 8 4 0 5 12 283 Freight air transportation 1 2 0 3 3 29 Other postal activities 1 0 2 3 3 47 Courier activities 9 0 1 2 10 341 Newspaper distribution 0 1 8 2 9 16 Responses 133 62 6 Sample 406 153 18 Population 14630 153 18 4.5 Data analysis cover letter and a prepaid postage return envelope were mailed to the security, risk, transportation and logistics managers of the selected companies. To respect the ano- The statistical methods used in this investigation are based nymity of the answers, a unique code was generated, on multivariate analysis techniques. The general structure assigned to the respondents and printed on the return of the statistical analysis to be performed includes the envelopes. This was also necessary to keep track of the following steps: descriptive statistics, exploratory and responses and limit the postage of reminders [15]. confirmatory factor analysis and structural equation mod- To increase the response rate, the cover letter (1) elling. Before running the analysis, the presence of com- included the logo of the Swedish police, (2) included a mon method bias was checked by performing an un-rotated factor analysis using Kaiser Criterion (Eigen value [ 1). detailed description about how to compile the question- naire, (3) ensured the confidentiality of the answers and (4) This analysis revealed the existence of 18 distinct factors that accounted for 75.3 % of the variance. In particular, it promised an executive summary of the results. Reminder letters, together with a copy of the questionnaire and a was noticed that the first factor accounted for only 27.9 % prepaid postage return envelope were sent to non-respon- of the variance. Hence, since a single factor did not appear dents 2 weeks after the deadline. In addition, follow-up in the analysis as well as the first factor did not account for telephone calls were performed (1) to enhance the quality the most of the variance, the absence of common method of the answers and (2) to obtain additional responses [15]. bias may be assumed [35]. In addition, in this investigation, A total of 47 companies were contacted by phone during one-tailed tests are used and the level of significance has been set to \0.05. All the statistical analyses have been this process. The reasons for not answering the question- naire were in order, lack of time, internal policy, difficult to carried out with SPSS v. 15.0 and LISREL 8.80. find the right competence, not relevant (this was especially true for recycling and low value goods companies). In only 4.5.1 Descriptive statistics one case, a manager could not access data from 2009 because she was recently unemployed. Finally, in other In this phase, the following analysis was performed: cases, the company had bankrupted or was sold. At the end missing value analysis and calculation of numerical sum- of the data collection, a total of 210 questionnaires were mary measures as means and standard deviations. received which corresponds to a response rate of about 36.4 %. By performing a missing value analysis, it was 4.5.2 Exploratory and confirmatory factor analysis (EFA decided to keep only the questionnaires with less than 17 and CFA) missing answers. This implies that 35 questionnaires were removed from the sample for subsequent data analysis. The By performing an exploratory factor analysis (EFA), the questions in the survey have been put together in summated demographic characteristics of the sample are reported in Table 4, together with information about the population scales [24]. The EFA performed within this investigation is based on a principal component analysis (PCA) with and sample size in each of the strata, as well as the amount of responses. orthogonal rotation (Varimax). The correlation coefficients 123 Logist. Res. (2013) 6:145–157 151 as well as the determinant of the correlation matrix have (supervisors and other colleagues), 1 language expert and 1 been screened to detect multicollinearity problems and administration officer. Additionally, the instrument was avoid biases in the reduced data [24]. The adequacy of the also pretested using 10 professional experts working in the sample size as well as the magnitude of correlations field of transportation and logistics security. Comments and between the items (necessary conditions for PCA) is feedbacks from these two reviews have been used to assessed, respectively, with the Kaiser–Meyer–Olkin enhance the accuracy of the questions. (KMO) measure and the Bartlett’s test of sphericity [24]. In this investigation, internal consistency has been Finally, the reliability degree of the related constructs has checked by means of a factor analysis as well as by cal- been checked by performing a reliability analysis and by culating and reporting the Cronbach’s a. The reliability of consequently examining the values of the Chronbach’s this survey has also been measured by using the extrapo- alpha [24]. lation method, which is built upon the assumption that A confirmatory factor analysis (CFA) has been run to respondents answering less readily are more like non- determine how well the measured variables represented the respondents [3]. Hence, in this investigation, by comparing constructs. This technique is different from the EFA since early and late responses, no significant differences were the number of constructs, as well as the relationships found, either in terms of the outcome variables nor in terms between the items and the constructs are established by the of the demographic characteristics, which indicates the researcher [24]. The analysis of the model fit indices was absence of non-response bias [3]. exploited to establish construct validity and unidimen- sionality. Convergent validity was assessed by examining the value of standardized coefficients, t values for the 5 Interview results individual paths, construct reliability (CR) and average variance extracted (AVE) [24]. Discriminant validity was The relevance of the law enforcement agency to prevent as estimated by developing additional measurement models in well to support operators in recovering their shipments was which the correlation of any two constructs under exami- teased out during two security workshops held in Sweden. nation was set to 1.0. Thereafter, differences of the v During these events, police representatives encouraged values for the fixed and free solutions were examined to transport companies to report cargo theft and improve assess the distinctiveness of the two constructs [24]. collaboration with the law enforcement agency. One of the main findings during the workshop was that 4.5.3 Hypothesis testing the resources allocated by the Swedish law enforcement agency are scarce and consequently the deterrent effect on The hypothesized structural equation model illustrated in crime is minimal. In particular, the participants criticized Fig. 1 was tested using LISREL 8.80. The model used the the law enforcement agency since they often do not pri- resource allocation construct as the exogenous variable and oritize cargo theft. According to three of the respondents, the criminal justice efforts and business policing constructs the problem faced today is that the amount of received theft as the endogenous variables. The model parameters were claims from transport operators is not high enough to jus- estimated using the method of maximum likelihood, which tify an increment of resources to combat criminals. is set as default in the software [29]. Within this stage, the Transport operators are afraid to show their brands in theft values of model fit indices were checked to validate whe- statistics. In addition, they feel that this is only an admin- ther the model fits the data, and significance was deter- istrative cost that will rarely lead to cargo recovery. mined by examining the t test values at p \ 0.05 level. Transport operators are afraid to show their brand names in theft statistics and therefore they do not 4.6 Validity and reliability announce the problem to the police that in its turn does not have the real picture of the situation. To ensure the validity of the questionnaire, the survey indicators used to measure the theoretical constructs were Operators are not claiming enough, thus we cannot scrutinized by academics. The data collected refer to 2009, allocate resources adequately. that is, believed not to be too far in the past and therefore Our company has a good cooperation with the easily accessible by respondents. Moreover, the survey was national law enforcement agency. However, we know targeted at individuals that possessed the right competence and experience to provide with credible and accurate answers. Finally, to enhance the validity of this investiga- Insurance company seminar, Gothenburg, Sweden, March 2008. tion, the developed survey instrument was thoroughly ¨ ¨ Workshop on Transportation Security, Jonkoping, Sweden, Novem- pretested using numerous academic professionals ber 2007. 123 152 Logist. Res. (2013) 6:145–157 that many thefts are not reported by other companies. Table 5 Summary of variables measuring the influence of law enforcement agency (N = 175) This makes it hard to combat cargo theft. Mean SD Other results from the interviews indicate that operators perceive existing laws to prosecute criminals as too weak. Effort of justice to punish criminals 2.63 0.95 As a consequence, it is not only difficult to arrest criminals, Penalty sentence 2.74 1.08 but also to keep them in custody. Quick arrest and process in court 2.64 1.14 Increased confidence for law enforcement’s efforts 2.94 1.06 Criminals attack according to a trade-off between Criminals’ return to target 2.79 1.05 risks and revenues. The situation today is that dis- Rigid criminals punishment 2.56 1.09 tribution chains are easy and profitable targets. At the High security reporting frequency 3.27 1.11 same time, prosecution is not severe enough to dis- Efforts to arrest criminals 2.84 1.05 courage perpetrators. Law enforcements’ resource allocation 2.72 1.13 Once criminals are captured, we can keep them in Confidence for prosecution after reporting 2.98 1.07 custody for a limited amount of time. So they are Security reporting highest priority 3.18 1.10 back in business after only few months. Reporting incidents increase police’s resource 2.94 1.05 allocation Prosecution should be more severe to discourage Always joined security activities 2.50 1.15 criminals attacking our distribution chains. Security activities enhance security 2.66 1.19 Finally, two respondents also say that to reduce the Security knowledge is improved by joining security 2.82 1.24 increase in cargo theft experienced during recent years, activities the Swedish law enforcement agency is today working with Security activities improve collaboration among 2.75 1.20 policing activities to increase awareness about the cargo stakeholders Importance of collaboration with law enforcement 2.91 1.26 security problem. agency The activities organized by the law enforcement Collaboration with law enforcement agency improve 2.79 1.17 agency have contributed to increase awareness of the security cargo theft problem Thanks to the workshops, we have had the possibility to come closer to the law enforcement agency and of criminal punishment (M = 2.56, SD = 1.09). The strengthen collaboration variables with the highest scores are the frequency to report security incidents (M = 3.27, SD = 1.11) as well as the high priority given by organizations to report security 6 Survey results incidents (M = 3.18, SD = 1.10). The data collected is analysed using four steps. First, the 6.2 Factor and reliability analysis descriptive statistics of the items used to measure the A PCA with Varimax rotation was performed to identify constructs is reported. Next, results from EFA and CFA are reported in order (1) to identify underlying dimensions different dimensions in the variables used to measure the influence of the law enforcement agency. The correlation behind the variables used in the four areas of questions and (2) to measure how well the items identified in the EFA coefficients suggest that multicollinearity is not an issue. The Kaiser–Meyer–Olkin measure (KMO = 0.90, mar- measure the constructs. Finally, the hypothesized structural model in Fig. 1 is tested. vellous according to Kaiser, 1974) indicates the suitability of the sample size for the factor analysis. 6.1 Descriptive statistics The Bartlett’s test of sphericity is significantly large (v (153) = 2581.3, p \ 0.01) which implies that the cor- relation matrix is not an identity matrix (the correlations The patterns of the indicators used to measure the factors influencing security were also inspected. All the variables’ between items were sufficiently large). Examining the scree plot, and following the Kaiser’s criterion, a total of scores range between 2, Disagree and about 3.27, (3 Nei- ther Agree nor Disagree) (Table 5). However, 16 of the 18 three factors explaining 72.3 % of the variance were extracted. The interpretation of the variables clustered in variables used are below 3. The variables that score lowest are those concerning the frequency to join community the rotated component matrix (Table 9), results in the policing activities (M = 2.5; SD = 1.15) and the severity following factors: 123 Logist. Res. (2013) 6:145–157 153 • Component 1. Criminal justice efforts (CJE). 6.3 Hypotheses testing • Component 2. Community policing activities (CPA). • Component 3. Resource allocation (RA). As indicated earlier, the hypothesized structural model was tested using LISREL. In particular, given the satisfactory Table 9 also presents the items’ communalities after measurement results, the summated scores were used to extraction as well as the Cronbach’s alpha of the three measure the model’s latent constructs. The model param- components. The majority of the items have communalities eters were estimated using the method of maximum like- greater than 0.7. In addition, the average communality is lihood. The values for the model fit indices indicate that the 0.72 which confirms the correct adoption of the Kaiser’s model fits the data sufficiently well (NNFI = 0.95, criterion. The Cronbach’s alphas of the three factors were CFI = 0.96, root mean square residual [RMSR] = 0.07, all above 0.8 which verifies the high reliability of the scales root mean square error of approximation [RMSEA] = 0.1 identified with the factor analysis. and v [NC] = 2.76). The t tests show that both of the two Confirmatory factor analysis (CFA) was run to further hypothesized relationships were found to be significant at establish unidimensionality and construct validity. The 0.01 level (Table 9). More specifically, the path from values for the fit indices show that the model fits the data resource allocation to prosecution degree is statistically sufficiently well (NNFI = 0.94, CFI = 0.96, root mean significant (b = 0.19; t = 4.42; p \ 0.01). Likewise, the square residual [RMSR] = 0.08, root mean square error of path from resource allocation to collaboration activities is approximation [RMSEA] = 0.1 and v [NC] = 3.44). also significant (b = 0.78, t = 7.29, p \ 0.01). Total Confirmatory factor analysis was also used to assess effects of the model are reported in Table 7. discriminant validity. Significant differences of the v values for the fixed and free solutions testify the dis- tinctiveness of the constructs (Table 6). In addition, the 7 Discussion examination of the confidence intervals that was set to be equal to plus or minus two standard errors of the The data analysed in this paper (both from the interview correlation coefficient of the pair of constructs, do not and the survey studies) recognize the important role of the include the value of 1. Hence, discriminant validity was law enforcement agencies in transport security. Our results ensured. are in line with theories from criminology that claim the importance of allocating more resources to community policing and the criminal justice system to more effectively deter business crime. In this paper, we test these theories in Table 6 Assessment of discriminant validity the context of transport security, that is, theft crime per- CJE RA CPA petrated against cargo moving in supply chains and dem- onstrate that Swedish transport companies perceive the Criminal justice efforts – following: Resource allocation 162.32 – 0.79–0.90 (1) The increment of resources allocated by the law Community policing activities 1144.17 499.38 – enforcement agencies improves the efforts put by 0.26–0.51 0.36–0.59 criminal justice to prosecute criminals (H1). First row v differences between the fixed and free solution [signifi- (2) The increment of resources allocated by law enforce- cant at p \ 0.01 (1 df)] ment agencies results in improved community polic- Second row confidence interval (none of them include 1.00) ing activities (H2). Our results show that in Sweden, the resource allocation of law enforcement agencies is generating results in terms of better prosecution and relationship with the transport Table 7 Indirect and total effects industry. However, it is important to notice that the Exogenous Endogenous variables descriptive statistics of the data shows that many of the variable Criminal justice Community policing variables (16 of 18) used in the questionnaire scored below efforts (CJE) activities (CPA) 3(neither agree nor disagree). This implies that despite the Total Total positive relationships between the survey’s parameters, Resource 0.83* (0.19) 0.47* (0.78) transport companies are not fully satisfied with the current allocation (RA) levels of allocated resources, the on-going community * t values significant at p B 0.01 policing activities and criminal justice efforts. 123 154 Logist. Res. (2013) 6:145–157 As a consequence, we claim that more resources should depict a generic dissatisfaction towards the work that is be allocated to deter cargo crime in Sweden. In particular, being done by the law enforcement agency (M = 2.82, these resources should aim to stimulate transport compa- SD = 1.1). Also, looking at the averages of the con- nies joining policing activities, facilitate crime reporting, structs used in the analysis, it may be stated that the streamline procedures to arrest and quickly prosecute respondents seem (1) to not properly be satisfied with the criminals, and to review the legal system especially in criminal justice efforts to prosecute criminals, (2) to not terms of punishments for crimes in this area. It has been to be convinced that the law enforcement is allocating demonstrated that in countries where law enforcement enough resources to fight cargo crime and (3) to not agencies are weak, the business sector may lose confidence properly join policing activities. in the authorities. The major risk is that discouraged The application of Structural Equation Modelling tech- companies stop reporting crime which can lead to a dan- niques confirms the high impact of resource allocation on gerous cycle, that is, the reduction in crime reporting may criminal justice efforts, that is, the proper prosecution of lead to a reduction in resources to deter crime and prose- cargo crime. Accordingly, if resources are adequately cute criminals. allocated by the law enforcement agencies, then criminals Hence, if immediate changes are not implemented, then would be properly prosecuted and most of all cargo crime cargo crime may substantially increase, resulting in deterred. Additionally, our results show that the allocation potentially considerable financial losses for the transport of resources made by the law enforcement agencies posi- industry. Furthermore, this may have a negative impact on tively affects the policing activities to help transport the economic growth of a country, especially considering companies protecting their assets. the fact that the majority of transport companies are small/ From a scientific viewpoint, this investigation contrib- medium-sized enterprises and the risk of them going utes to existing literature by showcasing the importance of bankrupt, with just few incidents, is quite high. Another the role of the law enforcement agencies in transport consequence is that companies may consider security los- security. From a practical viewpoint, transport and logistics ses as part of the costs for doing business. Accordingly, managers are recommended to strengthen their relationship they might start to make extended usage of strategies to with the police especially in terms of correct and promptly absorb losses internally, for example, insurances and risk performed crime reporting. Otherwise the risk is that the sharing in contracts’ clauses. While the transport compa- law enforcement agencies will not be able to allocate nies might find ways to cover the losses, organized crime resources to fight cargo criminals and play a key role in (1) may see this as an opportunity to increase their activities in deterring attacks, (2) prosecuting organized crime, and the transport industry. Obviously, this is not an acceptable finally (3) organizing policing activities. In the remainder of the section, we present some key scenario, and thus actions are required—especially given the potentially negative societal consequences. limitations with the ambition of providing potential ave- nues for future research. The first limitation concerns the measures developed for the three constructs: resource 8 Conclusion allocation, community policing activities and criminal justice efforts. Given that these are newly developed scales, In this paper, we combine explorative investigation along future research needs to validate the indicators used in this with survey-based study to understand the importance of investigation and also develop robust indicators to measure the role of law enforcement agencies in transport security. these constructs. Second, the results of this investigation Theories from criminology are used to develop two main may be generalized only to the transportation sector in hypotheses concerning the relationship between the Sweden (according to [10] with a confidence level between resources allocated by the law enforcement agency and (1) ±7 % and ±8 %).To extend the external validity of the the community policing activities and (2) the criminal findings from this study, we recommend future research to justice efforts. To test these hypotheses, a questionnaire replicate this study using samples from other countries. was developed and sent to 577 physical distribution carri- ers operating in Sweden. The survey had a final response rate of 36.4 % (210 questionnaires). Appendix Examining the arithmetic average of all the items used to measure the three constructs, it is possible to See Tables 8 and 9. 123 Logist. Res. (2013) 6:145–157 155 Table 8 Demographic characteristics of the respondents Industry Position Respondent 1 Electronics Manufacturer Security Manager Respondent 2 Transportation Lawyer Respondent 3 Road Carrier Security Manager Respondent 4 Logistics Service Provider Global Security Manager Respondent 5 Food Products Security Manager Respondent 6 Pharmaceutical Security Manager Respondent 7 Cash Transportation Security Manager Respondent 8 Law Enforcement Agency Police Inspector Respondent 9 Security Certification International Sales Manager Respondent 10 Logistics Service Providers Regional Security Manager Respondent 11 Security Solution Provider Commercial Director Respondent 12 Road Carrier CEO Respondent 13 Security Solution Provider CEO Respondent 14 Shipping Company Senior Director Respondent 15 Shipping Company Corporate Security Manager Respondent 16 Insurance Company Claims Manager Table 9 Summary of EFA and SEM fit indices (N = 175) Item Component Measurement model CJE RA CPA Communality Std. Coefficient t value Effort of Justice to punish criminals 0.87 0.16 0.13 0.79 0.8 13.49 Quick arrest and process in court 0.81 0.13 0.22 0.73 0.77 10.61 Rigid criminals punishment 0.81 0.12 0.29 0.75 0.94 13.1 Slow criminals’ return to target 0.78 0.15 0.24 0.69 0.83 11.97 Penalty sentence 0.73 0.15 0.17 0.58 0.84 12.57 Increased confidence for law enforcement’s efforts 0.71 0.19 0.35 0.66 0.93 13.88 Law enforcements’ resource allocation 0.64 0.17 0.48 0.68 0.84 11.95 Efforts of law enforcement agency to arrest criminals 0.58 0.19 0.56 0.69 0.78 10.34 Security Knowledge is improved by joining security activities 0.13 0.91 0.16 0.88 0.62 7.64 Security activities enhance security 0.12 0.90 0.15 0.84 0.87 13.13 Security activities improve collaboration among stakeholders 0.25 0.85 0.09 0.79 0.92 12.89 Importance of collaboration with law enforcement agency 0.00 0.85 0.17 0.75 0.84 12.26 Always joined security activities 0.20 0.84 0.03 0.75 0.97 13.62 Collaboration with law enforcement agency improve security 0.22 0.82 0.10 0.74 1.09 15.79 Security reporting highest priority 0.29 0.15 0.77 0.70 1.17 16.49 High security reporting frequency 0.17 0.02 0.77 0.62 1.03 14.11 Confidence for proper prosecution after reporting 0.41 0.18 0.71 0.71 1.00 12.43 Reporting incidents increase police’s resource allocation 0.43 0.38 0.59 0.67 0.93 12.48 Eigenvalues 5.10 4.86 3.04 % of variance 28.37 27.03 16.9 a 0.93 0.94 0.83 CR 0.92 0.83 0.85 AVE 0.71 0.67 0.82 Extraction method, PCA; Rotation method, Varimax with Kaiser Normalization Model fit indices: normed v [NC] = 3.44, Goodness of Fit Index = 0.82 \ (0.90), adjusted goodness of fit = 0.72 (\0.80), non-normed fit index = 0.94 (C0.90), root mean square residual = 0.08 (B0.10), root mean square error of approximation = 0.1 (B0.10). 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Logistics Research – Springer Journals

Published: Apr 23, 2013

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