Analysis of Logistics Outsourcing Situation in Bahrain Manufacturing Companies: A Structural Equation Modelling Approach

Abstract

The main objective of this study is to analyze the logistics outsourcing situation movement among Bahrain manufacturing companies using SEM approach. In order to achieve the study objective, a quantitative analysis was conducted by adopting A questionnaire technique for data collection. Furthermore, the sample size of 80 employees working in Bahrain manufacturing companies was measured. The study conducted different quantitative analysis such as: correlation and regression analysis to reveal the relationship between the selected variables. Additionally, SEM analysis factors were carried out to impute the association between unobserved constructs from observational variables. Hence, the major fndings of this study showed that the economies of sales, core competencies, and higher fexibility are considered as the major advantages for logistics outsourcing services in Bahrain’s manufacturing organizations. Besides, there are disadvantages on the other hand such as: lower work morale, lack of corporate knowledge, threatened data security, and partner selection risk. Moreover, there are positive and negative associations between logistics outsourcing (cost reduction, quality, human resource, cooperation, core business, reliability, effciency, fexibility, and enhanced customer service), and (organizational performance). Though, a signifcant relationship was shown between the cost reduction, cooperation, and core businesses..