Logistics outsourcing and performance of manufacturing small and medium-sized enterprises in Nairobi

Mageto, Joash; Prinsloo, Gerrie; Luke, Rose

doi:10.4102/sajesbm.v10i1.162

Cited by 9 publications

(25 citation statements)

References 53 publications

(89 reference statements)

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“…Equally, the results indicate that LO has a significant positive impact on FP (β 5 0.438, t 5 5.473, p-value 5 0.000), thereby supporting H4. While our result is corroborated by the findings of Salimath et al (2008) and Kotabe and Mol (2009) where it was found that LO leads to significant FP improvement among US firms and Dutch firms, respectively, Mageto et al (2018) provide a contradictory result that suggests that the link between LO and FP is statistically not significant among small and medium-sized enterprises in Nairobi, Kenya. More specifically, the result obtained in this study is significantly different from the work of Solakivi et al (2011) where it was disclosed that the link between LO and performance is nonexistence among some selected SMEs in Finland.…”

Section: Company Competitivenesssupporting

confidence: 78%

“…Despite the growing evidence supporting the assertion that LO leads to improved FP, relatively few studies hold a contradictory view. For instance, Mageto et al (2018) disclosed that the link between LO and performance in terms of profits, return on asset and return on capital employed is statistically not significant. The findings of Lahiri (2016) suggest that the real benefit of outsourcing on performance is not straightforward, because outsourcing can yield negative, positive, non-significant and moderated effect on performance.…”

Section: 6mentioning

confidence: 99%

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Examining the links between logistics outsourcing, company competitiveness and selected performances: the evidence from an emerging country

Afum

Agyabeng‐Mensah

Acquah

et al. 2021

IJLM

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PurposeThis study examines the mediation effects of time-based competitiveness, cost-based competitiveness and customer performance between logistics outsourcing and financial performance.Design/methodology/approachThe study relied on a questionnaire as the primary data collection instrument and further employed partial least squares structural equation modelling technique to test all formulated hypotheses.FindingsThe results demonstrate that logistics outsourcing has a significant positive impact on time-based competitiveness, cost-based competitiveness, customer performance and financial performance. Time-based competitiveness and cost-based competitiveness were both found to have a significant positive impact on financial performance; however, customer performance had no significant impact on financial performance. The mediation analysis further indicates that while both time-based competitiveness and cost-based competitiveness play mediation effects between logistics outsourcing and financial performance, customer performance plays no mediation effect between logistics outsourcing and financial performance.Research limitations/implicationsThe sampled firms for this study came from a single emerging country; hence, the results cannot be generalized or imported to reflect the results that may be obtained from other emerging geographical settings.Practical implicationsThe results provide sufficient evidence for managers to turn their attention to logistics outsourcing, as a transformative business initiative, to gain time-based and cost-based competitiveness so as to improve financial performance.Originality/valueThe study provides significant insight and makes an additional contribution to literature in the area of logistics outsourcing, especially by collecting data from an emerging country. Modelling time-based competitiveness, cost-based competitiveness and customer performance as mediating variables between logistics outsourcing and financial performance make this work relatively different from other studies.

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Section: Company Competitivenesssupporting

confidence: 78%

Section: 6mentioning

confidence: 99%

Examining the links between logistics outsourcing, company competitiveness and selected performances: the evidence from an emerging country

Afum

Agyabeng‐Mensah

Acquah

et al. 2021

IJLM

View full text Add to dashboard Cite

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“…Despite their continued use in strategic management research, Raymond et al (2013) posited that they are not readily available in the public domain and most SMEs do not have the data (Salloum et al 2016:25). However, in this study, the researchers adopted a subjective approach in assessing firm financial performance following the recommendations of Harif, Hoe and Ahmad (2013) and Mageto, Prinsloo and Luke (2018), that in the absence of objective financial data, researchers may use relative and perceived measures of financial performance. Thus, in this study, the participants were asked to indicate their financial performance trend for the past 3 years on the seven-point Lickert scale.…”

Section: Financial Performancementioning

confidence: 99%

“…The items used to measure the constructs were adapted from the literature, that is, items for strategy formulation were borrowed from David and David (2016), Lynch (2015), Singh (2009), Sandada (2015), Sandada and Chikwama (2016), and cited in Nwachukwu et al (2017). Items for financial performance were borrowed from Mageto et al (2018), Germanos (2012, Wang et al (2015) and Makanyeza and Dzvuke (2015). However, the items were modified to suit the present study.…”

Section: Data Collection and Instrumentationmentioning

confidence: 99%

The influence of strategy formulation practices on the perceived financial performance of small and medium enterprises: The Zimbabwean experience

Mashingaidze

Phiri

Bomani

2021

The Southern African Journal of Entrepreneurship and Small Busi

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Although SMEs are responsible for addressing sustainable development in Zimbabwe (Tinarwo 2016:148), these enterprises are faced with many challenges that negatively affect their performance Background: The role of strategy formulation in enhancing the performance of small and medium enterprises (SMEs) has attracted much attention amongst researchers worldwide. However, little research has been conducted on the strategy formulation practices of SMEs and their implications for the perceived financial performance of these firms, especially in the developing world.Aim: This study was aimed at establishing the impact of strategy formulation on the perceived financial performance of SMEs in Zimbabwe.Setting: Primary research was conducted in Harare, the capital city of Zimbabwe. Methods:The study took a case study design in which the researcher collected data from manufacturing SMEs in Harare, Zimbabwe. Stratified random sampling was employed to draw 368 questionnaire respondents from the five manufacturing classes that emerged from the population. Data were analysed using both descriptive and inferential statistics. Results:The study established that strategy formulation is somewhat prevalent amongst SMEs in Zimbabwe. The five strategy formulation activities as put forward by the theory are found in Zimbabwean SMEs. The results revealed that strategy formulation significantly influences both short-term and long-term perceived financial performance of SMEs in Zimbabwe. Conclusion:The study has implications at a practical and managerial level. Whilst supporting SMEs is commendable, governments should prioritise the provision of management and entrepreneurial training for SMEs to foster the adoption of strategy formulation. This study suggests that SMEs should make strategy formulation a priority, a key ingredient to the success of their enterprises. It is necessary to inculcate the necessary culture, which supports effective strategy formulation. The study proposes suggestions for future research.

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“…The contribution of SMEs is not uniform throughout the world because it differs from country to country by the level, pattern and rate of change in economic development (Lavhelani et al, 2018). For example, in the European Union, SMEs constitute over 99 percent of the companies and provide 85 percent of new jobs (Mageto et al, 2018). In Sub Saharan Africa, particularly South Africa, SMEs constitute 91 percent of formal business enterprises contributing 57 percent and 61 percent to the country's GDP and employment, respectively (Makiwa, 2018).…”

Section: Introductionmentioning

confidence: 99%

Marketing practices for Small and Medium Enterprises: An exploratory study of manufacturing firms in Zimbabwe

Mashingaidze

Bomani

Derera

2021

Journal of Contemporary Management

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Background: Changes in the Zimbabwean political landscape led to various socio-economic transformations. One being the small and medium-sized manufacturing enterprise (SME) sector becoming a dominant player in the economy. The success of SMEs positively impacts the economy. The use of appropriate and effective marketing practices accounts for the survival and growth of SMEs. Purpose of study:The study explores the marketing practices adopted by small and medium-sized manufacturing enterprises in Zimbabwe. The specific objectives are to (1) examine how SME owners or managers perceive marketing in the manufacturing sector; (2) examine the role of marketing in SMEs in the manufacturing sector; (3) explore the strategic market planning of manufacturing SMEs in Zimbabwe; and (4) analyse the marketing strategies adopted by SMEs in the manufacturing sector. Design/Methodology/Approach:The study adopted a qualitative approach to gather data from fifteen conveniently sampled owners/managers of SMEs using interviews. Thematic analysis was employed for data analysis.Results/Findings: Findings of the study revealed that manufacturing SMEs are familiar with some marketing concepts. These marketing concepts include marketing environment analysis, customer satisfaction, relationship marketing, customer loyalty and competitive advantage. Fundamental to the practice of marketing M MASHINGAIDZE M BOMANI E DERERA Marketing practices for Small and Medium Enterprises: An exploratory study of manufacturing firms in Zimbabwe

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Logistics outsourcing and performance of manufacturing small and medium-sized enterprises in Nairobi

Cited by 9 publications

References 53 publications

Examining the links between logistics outsourcing, company competitiveness and selected performances: the evidence from an emerging country

Examining the links between logistics outsourcing, company competitiveness and selected performances: the evidence from an emerging country

The influence of strategy formulation practices on the perceived financial performance of small and medium enterprises: The Zimbabwean experience

Marketing practices for Small and Medium Enterprises: An exploratory study of manufacturing firms in Zimbabwe

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