Investigating the mediating effect of logistics capabilities on the relationship between logistics information sharing and logistics performance

Abstract

Purpose

The purpose of this study is to investigate the impact of logistics capabilities on the relationship between information sharing (INS) and logistics performance of Sudanese industrial companies.

Design/methodology/approach

This descriptive study investigates the relationship between INS and logistics performance in Sudanese industrial companies. A five-point scale questionnaire surveyed a non-probability sample of 262 logistics, supply chain and operations managers. Structural equation modeling has been used to test the relationship between the variables.

Findings

The results revealed that there is no direct positive relationship between logistics INS and logistics performance, while there is an indirect relationship through logistics capabilities. The findings confirmed that there is a positive relationship between logistics INS and logistics capabilities.

Research limitations/implications

There are several limitations in this study. This study is limited to certain businesses and has a small sample size, which may impact the capacity to apply the findings to a broader context. The sample was based on the current manufacturing companies in Sudan, which are distinguished by certain characteristics in terms of number, business stability and other factors. Because of these factors, the findings may not accurately reflect the actual situation. Industrywise, this study focused on manufacturers, whereas logistics is based on a chain of partners and involved parties. Including them in any future investigation could lead to meaningful findings and discoveries. Furthermore, the data collection’s cross-sectional form may not comprehensively reflect the temporal dynamics of logistical activities. Future research may address these constraints by investigating the efficacy of diverse logistical capabilities in other businesses and circumstances. The construct of the variables is a single-dimension construct, which does not reflect all the practices associated with INS, logistics capabilities and logistics performance. Furthermore, there is an opportunity to explore further the impact of INS on important logistical performance metrics, such as order lead time, on-time delivery and inventory management. One potential area for future investigation is the study of logistics information-sharing technologies, specifically utilizing data analytics and machine learning. In such a context, deep insight and understanding of logistics capabilities and performance require more qualitative analysis; therefore, future research could fill this gap and provide deeper insight.

Practical implications

For practitioners in the small and medium-sized enterprise sector in Sudan, these findings suggest enhancing their operations, particularly by investing in information-sharing technologies that improve stakeholder coordination. Actively engage supply chain partners in the logistics information system to ensure timely and accurate information flows to all. However, it’s important to be aware of potential challenges, such as the high costs and complex design of these systems and potential resistance to change within businesses. Policymakers play a crucial role in this process, as they can use these findings to establish industry-wide standards or incentives that promote the use of advanced logistical capabilities; besides that, policymakers need to invest in building genuine information channels and systems that inform the industry and clear the ambiguity.

Originality/value

This study establishes a relationship between INS and logistics performance, which will be interpreted by logistics capabilities to enhance the logistics performance of Sudanese logistic businesses in an underdeveloped context characterized by a weak logistics industry and logistics capabilities. It suggests that companies should prioritize logistics INS and investment in INS technology to enhance their logistics capabilities.

Citation

Hamid, A.A., Eshag, E.A.E., Karim, N.H. and Abdul Rahman, N.S.F. (2024), "Investigating the mediating effect of logistics capabilities on the relationship between logistics information sharing and logistics performance", International Journal of Productivity and Performance Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJPPM-05-2024-0284