Assessing the Effect of Inbound and Outbound Logistics on Organisational Performance: A Case of SMEs in Lusaka CBD

Abstract

The purpose of this study was to evaluate the effect inbound logistics, outbound logistics, operational expenses, gender and workforce size have on the performance metrics of small and medium enterprises (SMEs) that are located in the Central Business District (CBD) of Lusaka. The study which had its origins in Resource-Based Theory, Value Chain Theory and Transaction Cost Theory investigated the impact that logistical and operational factors had on the accomplishment of organisational success. A quantitative approach was applied and a sample targeting 398 SMEs from a population of 84000 was surveyed with descriptive and regression methods used to analyse the data collected. It was established that receiving and dispatching logistics and operational expenses mostly affected the performance of SMEs with operational expenses being the most important. Gender and number of employees had little influence which was further reduced when logistical variables were included. These findings underscored the importance of improved logistical functionality and cost control in achieving competitive advantages and sustainability within resource constrained conditions. This study enriched the existing literature by offering practical knowledge to the SMEs in the context of a developing economy. Some of the recommendations such as the use of advanced logistics technologies, improvement of supply chain partnerships and use of cost cutting measures were noted to be appropriate. Keywords: Inbound Logistics, Outbound Logistics, Operational Costs, SME Performance, Resource-Based Theory, Value Chain Theory, Transaction Cost Theory, Lusaka, Developing Economies.