Determinants of logistics outsourcing performance among small and medium enterprises
- Mageto, Joash, Prinsloo, Gerrie, Luke, Rose
- Authors: Mageto, Joash , Prinsloo, Gerrie , Luke, Rose
- Date: 2020
- Subjects: Logistics outsourcing performance , SMEs , Factor analysis
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/428385 , uj:36840 , Citation: Mageto, J., Prinsloo, G. & Luke, R. 2020. Determinants of logistics outsourcing performance among small and medium enterprises.
- Description: Abstract: The purpose of this study is to establish determinants of logistics outsourcing performance and their relationship with logistics performance among manufacturing small and medium enterprises (SMEs). The increasing use and challenge of logistics outsourcing require that SMEs establish relationship factors that determine high outsourcing performance to enhance overall logistics performance. Data was collected from 406 SMEs using a structured questionnaire. Factor analysis was applied and four constructs were extracted; three were found to be determinants. Partial least squares structural equation modelling was performed to determine the associations among the constructs. Communication-trust, innovation and cooperation between the manufacturing SMEs and logistics service providers were identified as key determinants of logistics outsourcing performance. Strong associations were validated between communication-trust, innovation and cooperation. Only communication-trust was positively associated with logistics performance. The results guide SME managers to promote communication-trust in logistics outsourcing relationships.
- Full Text:
- Authors: Mageto, Joash , Prinsloo, Gerrie , Luke, Rose
- Date: 2020
- Subjects: Logistics outsourcing performance , SMEs , Factor analysis
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/428385 , uj:36840 , Citation: Mageto, J., Prinsloo, G. & Luke, R. 2020. Determinants of logistics outsourcing performance among small and medium enterprises.
- Description: Abstract: The purpose of this study is to establish determinants of logistics outsourcing performance and their relationship with logistics performance among manufacturing small and medium enterprises (SMEs). The increasing use and challenge of logistics outsourcing require that SMEs establish relationship factors that determine high outsourcing performance to enhance overall logistics performance. Data was collected from 406 SMEs using a structured questionnaire. Factor analysis was applied and four constructs were extracted; three were found to be determinants. Partial least squares structural equation modelling was performed to determine the associations among the constructs. Communication-trust, innovation and cooperation between the manufacturing SMEs and logistics service providers were identified as key determinants of logistics outsourcing performance. Strong associations were validated between communication-trust, innovation and cooperation. Only communication-trust was positively associated with logistics performance. The results guide SME managers to promote communication-trust in logistics outsourcing relationships.
- Full Text:
Logistics outsourcing and performance of manufacturing small and medium-sized enterprises in Nairobi
- Mageto, Joash, Prinsloo, Gerrie, Luke, Rose
- Authors: Mageto, Joash , Prinsloo, Gerrie , Luke, Rose
- Date: 2018
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/270628 , uj:28768 , Citation: Mageto, J., Prinsloo, G. & Luke, R. 2018. ‘Logistics outsourcing and performance of manufacturing small and medium-sized enterprises in Nairobi’, Southern African Journal of Entrepreneurship and Small Business Management 10(1), a162. https://doi.org/10.4102/ sajesbm.v10i1.162 , ISSN: 2071-3185 (Online) , ISSN: 2522-7343 (Print)
- Description: Abstract: Logistics outsourcing has been accepted as a strategy through which small and medium-sized enterprises (SMEs) can access the logistics capabilities they lack internally at a lower cost. However, the actual effect of logistics outsourcing on firm performance, especially among the SMEs in Nairobi, remains unknown. Aim: The study aimed to investigate the relationship between logistics outsourcing and firm performance of manufacturing SMEs in Nairobi. Setting: The study sampled manufacturing SMEs in Nairobi City County. Method: In this study, a convergent parallel mixed methods design was applied. Survey data were collected from 163 manufacturing SMEs. The data were analysed using structural equation modelling to test the relationship between logistics outsourcing and firm performance. Additionally, in-depth interviews were conducted in five manufacturing SMEs. Thematic analysis was used to analyse interview data to provide more insight in the quantitative data...
- Full Text:
Logistics outsourcing and performance of manufacturing small and medium-sized enterprises in Nairobi
- Authors: Mageto, Joash , Prinsloo, Gerrie , Luke, Rose
- Date: 2018
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/270628 , uj:28768 , Citation: Mageto, J., Prinsloo, G. & Luke, R. 2018. ‘Logistics outsourcing and performance of manufacturing small and medium-sized enterprises in Nairobi’, Southern African Journal of Entrepreneurship and Small Business Management 10(1), a162. https://doi.org/10.4102/ sajesbm.v10i1.162 , ISSN: 2071-3185 (Online) , ISSN: 2522-7343 (Print)
- Description: Abstract: Logistics outsourcing has been accepted as a strategy through which small and medium-sized enterprises (SMEs) can access the logistics capabilities they lack internally at a lower cost. However, the actual effect of logistics outsourcing on firm performance, especially among the SMEs in Nairobi, remains unknown. Aim: The study aimed to investigate the relationship between logistics outsourcing and firm performance of manufacturing SMEs in Nairobi. Setting: The study sampled manufacturing SMEs in Nairobi City County. Method: In this study, a convergent parallel mixed methods design was applied. Survey data were collected from 163 manufacturing SMEs. The data were analysed using structural equation modelling to test the relationship between logistics outsourcing and firm performance. Additionally, in-depth interviews were conducted in five manufacturing SMEs. Thematic analysis was used to analyse interview data to provide more insight in the quantitative data...
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The extent of logistics outsourcing among small and medium-sized manufacturing enterprises in Nairobi
- Mageto, Joash, Prinsloo, Gerrie, Luke, Rose
- Authors: Mageto, Joash , Prinsloo, Gerrie , Luke, Rose
- Date: 2018
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/267439 , uj:28371 , Citation: Mageto, J., Prinsloo, G. & Luke, R. 2018. The extent of logistics outsourcing among small and medium-sized manufacturing enterprises in Nairobi. Journal of Transport and Supply Chain Management, 12(0), a346. https://doi.org/10.4102/ jtscm.v12i0.346 , ISSN: 1995-5235 (Online) , ISSN: 2310-8789 (Print)
- Description: Abstract: Background: Small and medium-sized manufacturing enterprises (manufacturing SMEs) can facilitate economic growth and development by creating employment and spurring economic activities at low levels of the economy. The performance of SMEs in Kenya has, however, been poor, despite their significance. This poor performance is attributed to the high costs of logistics operations in the country. Manufacturing SMEs can, however, improve the performance of their logistics operations by adopting appropriate logistics outsourcing strategies. Aim: The purpose of this study is to determine the extent of logistics outsourcing among manufacturing SMEs in Nairobi. Setting: Manufacturing SMEs in Nairobi operate from the industrial zones of the Nairobi City County. The enterprises’ logistics operations are characterised by long cycle times, high transportation costs and limited resources. The high operational costs experienced by the SMEs threaten their survival, and they are therefore required, among other things, to manage their logistics more efficiently to improve overall performance. ..
- Full Text:
- Authors: Mageto, Joash , Prinsloo, Gerrie , Luke, Rose
- Date: 2018
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/267439 , uj:28371 , Citation: Mageto, J., Prinsloo, G. & Luke, R. 2018. The extent of logistics outsourcing among small and medium-sized manufacturing enterprises in Nairobi. Journal of Transport and Supply Chain Management, 12(0), a346. https://doi.org/10.4102/ jtscm.v12i0.346 , ISSN: 1995-5235 (Online) , ISSN: 2310-8789 (Print)
- Description: Abstract: Background: Small and medium-sized manufacturing enterprises (manufacturing SMEs) can facilitate economic growth and development by creating employment and spurring economic activities at low levels of the economy. The performance of SMEs in Kenya has, however, been poor, despite their significance. This poor performance is attributed to the high costs of logistics operations in the country. Manufacturing SMEs can, however, improve the performance of their logistics operations by adopting appropriate logistics outsourcing strategies. Aim: The purpose of this study is to determine the extent of logistics outsourcing among manufacturing SMEs in Nairobi. Setting: Manufacturing SMEs in Nairobi operate from the industrial zones of the Nairobi City County. The enterprises’ logistics operations are characterised by long cycle times, high transportation costs and limited resources. The high operational costs experienced by the SMEs threaten their survival, and they are therefore required, among other things, to manage their logistics more efficiently to improve overall performance. ..
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