Assessing the Relationship between Outsourcing Logistics and Operational Performance of Pharmaceutical Companies in Ghana: The Moderating effect of Logistics Capability
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Date
2023
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KNUST
Abstract
The purpose of this study was to assess the relationship between outsourcing logistics and operational performance and the moderating role of logistics capability in the pharmaceutical industry. The study adopted a quantitative approach with a sample size of 100 procurement and supply chain managers from pharmaceutical firms in Ghana. Convenience sampling technique was used to select the respondents. Data was collected using structured questionnaires based on a 7-point Likert scale. The data was descriptively and inferentially analysed using an IBM SPSS, version 23. The study therefore revealed a significant and positive relationship between outsourcing logistics and operational performance. Again, the study also investigated the moderating effect of logistics capability on the relationship between outsourcing logistics and operational performance. However, the study showed a negative moderation effect of logistics capability in the relationship between outsourcing logistics and operational performance. In conclusion, while initial expectations were geared towards a positive moderation effect of logistics capability on the relationship between outsourcing and operational performance, the results presented a contrasting narrative. The negative moderation effect implies that organizations with robust in-house logistics capability might not gain as much from outsourcing as initially thought. Based the findings stated, the study recommended that, management should invest in developing and enhancing internal logistics capabilities to help improve in logistics processes, infrastructure, technology, and human resources. Finally, the study recommended that, future studies should explore different industries, regions, and organizational sizes to provide a broader understanding of the relationship between outsourcing logistics, logistics capability, and operational performance.
Description
A thesis submitted to the Department of Supply Chain and Information Systems, Institute of Distance Learning, in partial fulfillment of the requirements for the award of the degree of Master of science in Logistics and supply chain management