The Interdependence of Institutional Framework and Business Success of Internationally Oriented Croatian Road Freight Transporters

Abstract

The road freight industry is a structurally competitive sector which is oriented towards distribution, logistics and basic physical transport. Road freight transport represents the leading transport branch in the European Union, and the same situation is on Croatian transport market. The activities of the Croatian road freight transporters on the foreign market have been continually increasing. This paper aimed to analyse the need for the influence of the institutional framework on the business success of Croatian road freight transporters. Special attention in conducted primary research has been given to examining the relationship between the distribution of the CEMT permits and business success. The results have confirmed that institutional conditions are essential for interpreting the changes in the business success of Croatian road freight transporters. The companies that stated how the CEMT permits and bilateral distribution system negatively influences their business have the lowest average values of the profit (loss) in relation to the assets and the capital. It is crucial to provide more CEMT and bilateral permits for Croatian road freight transporters in the future. It is necessary to coordinate the legislators with the practice to ensure that the amendments that will be adopted in the future also ensure sufficient conditions for successful business.

Keywords

• bilateral road haulage permit
• business success
• CEMT permit
• Croatian transporters
• international road freight transport