Insights into Logistic Strategy: A Progressive Factor Analysis of Outsourcing Intentions among SME Owners

Abstract

As the global business continues to evolve, SMEs experience heightened pressure to enhance operational efficiency and remain competitive. This study offers profound insights into the dynamic landscape of logistic strategy by employing a progressive factor analysis to scrutinize the outsourcing intentions among SME owners. By exploring the intricate relationships between various observed variables, the research aims to reveal latent factors influencing the decision making processes of SME owners regarding outsourcing practices. However, understanding the underlying factors that shape SME owners’ intentions towards logistic outsourcing is paramount for effective implementation. Utilizing a comprehensive factor analysis methodology, this research identifies and examines the fundamental determinants affecting logistic outsourcing intentions among SME owners. Through an extensive cross-industry survey involving 293 SME proprietors, data is systematically gathered on diverse factors influencing their logistic outsourcing intentions. Rigorous statistical analysis is applied to the collected data to expose latent variables and their intricate interconnections. The results illuminate a multifaceted landscape of influences on SME owners’ logistic outsourcing intentions. Notably, three of the four independent factors-attitude, subjective norm, and perceived behavioral control-significantly impact SMEs’ logistics outsourcing intentions. Additionally, the study delves into the role of trust in shaping outsourcing intentions, acknowledging the complexity of global supply chains. The findings contribute valuable insights to both academia and practitioners in logistics and SME management, offering a nuanced roadmap for SME owners navigating logistic outsourcing decisions and fortifying the resilience and competitiveness of the SME sector in the evolving global market.