Competitive advantage in SMEs: effect of supply chain management practices, logistics capabilities and logistics integration in a developing country
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Date
2021
Authors
Tukamuhabwa, Benjamin
Mutebi, Henry
Kyomuhendo, Rhona
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Business and Socio-economic Development
Abstract
The purpose of this paper is to explore the relationship between supply chain management
practices, logistics capabilities, logistics integration and competitive advantage of Small and Medium
Enterprises (SMEs) in a developing country.
Design/methodology/approach – Using a structured questionnaire survey, cross-sectional data collected
from 204 SMEs in Kampala – Uganda were analysed using exploratory and confirmatory factor analysis, and
Structural Equation Modelling (SEM) using AMOS version 26 to validate the theorised relationships.
Findings – The study findings revealed that both supply chain management practices and logistics
integration are positively and significantly associated with competitive advantage. Also, both supply chain
management practices and logistics capabilities are positively and significantly associated with logistics
integration. Additionally, the authors found that logistics integration partially mediates in the relationships
between supply chain management practices and competitive advantage, and logistics capabilities and
competitive advantage. Conclusively, the three independent variables collectively account for 11% variance in
competitive advantage of SMEs.
Originality/value – Given the general observation that SMEs are fundamental to socio-economic
development, yet resource constrained, this study uses Resource-based and dynamic capabilities theoretical
perspectives to provide an empirical understanding of the supply chain and logistics resources and capabilities
necessary for building competitive advantage of SMEs in the context of a developing economy.
Description
Keywords
Supply chain management practices, Logistics capabilities, Logistics integration, Competitive advantage, SMEs
Citation
Tukamuhabwa, B., Mutebi, H., & Kyomuhendo, R. (2021). Competitive advantage in SMEs: Effect of supply chain management practices, logistics capabilities and logistics integration in a developing country. Journal of Business and Socio-economic Development. DOI 10.1108/JBSED-04-2021-0051