Influence of Logistics Capabilities and Outsourcing on Organizational Performance
►Enoch Dotse Agbandzo
eagbandzo@htu.edu.gh (Corresponding Author)
https://orcid.org/0000-0001-7442-6109
►Jewel Dela Novixoxo
jnovixoxo@htu.edu.gh
https://orcid.org/0009-0002-8645-7241
►Constance Buah
constancebuah@gmail.com
https://orcid.org/0009-0008-1051-5864
►Joseph Kwasi Agbeka
joekilala@gmail.com
https://orcid.org/0009-0009-0749-5900
►Eric Asamoah
thebrainsconsult@gmail.com
https://orcid.org/0000-0003-1476-2893
►Mathew Quayson
mquayson@htu.edu.gh
https://orcid.org/0000-0002-1629-8193
►Maxwell Edem Azila-Gbettor
Eazila-gbettor@htu.edu.gh
https://orcid.org/0000-0002-4177-1739
Received: 31 March, 2024
Final Revision: 14 June, 2024
Accepted: 10 July, 2024
Published: 31 July 2024
doi.org/10.52283/NSWRCA.AJBMR.20240801A02
Abstract
Inadequate resources hamper efficient and effective logistics capabilities and outsourcing implementations that are critical to the competitiveness of organizations. This study addresses the inadequate resources that bedevil the cement industry of Ghana by assessing the logistics capability and outsourcing performance of Ghana’s Cement industry. The study adopted the survey design and analyzed the data collected using a Variance-based Partial Least Square (PLS-SEM) statistical analytical tool. The result revealed that the capital asset, human resources, and flow of information for logistic capabilities, as well as cross-docking and product marking for logistic outsourcing, significantly influence either financial or non-financial performance or both. Thus, logistics capability and outsourcing positively relate to organizational performance. This suggests that practitioners and managers should improve the flow of information and human resources activities in manufacturing organizations, which would significantly increase both the financial and non-financial performance of the organizations. The implication of sharing suitable information fosters transparency, leading to strengthening ties with suppliers, distributors, and customers for wealth creation.
Keywords: Logistics capability, outsourcing, organizational performance, joint effect of variance