Abstract
PurposeThe 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/approachUsing 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.FindingsThe 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/valueGiven 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.
Highlights
In both developed and developing economies, Small and Medium Enterprises (SMEs) are fundamental to socio-economic growth and development for they constitute a significant part of global supply chains
Summary and conclusions The study sought to investigate the antecedents of competitive advantage in SMEs from a logistics and supply chain management (SCM) perspective
Based on the extant literature and guided by the Resource-based view (RBV) and dynamic capabilities theoretical perspectives, SCM practices, logistics capabilities and logistics integration were theorised as potential antecedents of competitive advantage of SMEs
Summary
In both developed and developing economies, Small and Medium Enterprises (SMEs) are fundamental to socio-economic growth and development for they constitute a significant part of global supply chains. SMEs constitute about 99% of UK industry (SullivanTaylor and Branicki, 2011). In Uganda, SMEs and micro enterprises constitute about 90% of private sector industry (National survey of small businesses in Uganda, 2015). SMEs can be categorised variously in different economies, developing countries such as. © Benjamin Tukamuhabwa, Henry Mutebi and Rhona Kyomuhendo. Published in Journal of Business and Socio-economic Development. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode
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