Logistics Outsourcing Practices and Performance of Small and Medium Enterprises in Mogadishu, Somalia

Abstract

The general objective of the study was to establish the effect of logistics outsourcing practices on performance of Small and Medium Enterprises in Mogadishu, Somalia. The study was guided by the following specific objectives: to establish logistics outsourcing practices that have been adopted by Small and Medium Enterprises in Mogadishu, Somalia and to determine relationship between logistics outsourcing practices and performance of Small and Medium Enterprises in Mogadishu, Somalia. The study adopted cross sectional survey design targeting 78 small and medium enterprises in Mogadishu, Somalia. Census was used and thus all the 78 firms were included in the study. Primary data was collected as supported by the questionnaire. The analysis was done using descriptive statistics (means and standard deviations) and inferential statistics (regression analysis). The findings indicated that majority of the small and medium firms in Mogadishu have adopted logistic outsourcing practices and these have significantly contributed towards their performance. The study concluded that inventory management practice had the largest and significant effect on performance of the small and medium enterprises in Mogadishu, Somalia followed by information flow management practice, warehousing management practice, transportation management practice and material handling management practice. The study recommended that logistic managers of the small and medium enterprises operating in Mogadishu should focus more on inventory management practice, information flow management practice and warehousing management practice since they have the greatest contribution towards their overall performance. The study was limited by Covid-19 pandemic that was a major challenge during collection of data. The study recommended further research to be done among larger firms away from the SMEs so that a comparison of the findings would be possible