Order management practices and small-scale grape processing firms’ performance: the moderating effect of logistics capabilities

Abstract

This study examines the moderating effect of logistics capabilities on the relationship between order management practices and the performance of small-scale grapes processing firms. A resource dependency theory guided the study based on the key variables including order fulfilment management, information flow management, and multichannel order management. Data were collected through a survey questionnaire distributed to 202 owners of small-scale grape processing firms in Dodoma, Tanzania. The study used a cross-sectional survey design. Data were then analysed through descriptive and covariance-based structural equation modelling. The findings indicated that information flow and order fulfilment management had a positive and significant influence on firm performance. No statistically significant evidence, however, was found on the direct effect of multichannel order management on firm performance. Furthermore, the findings indicated that logistics capabilities play a significant moderating role in the relationship between order management practices and firm performance. These findings imply that logistics capabilities strengthen the effects of order fulfilment management, information flow management, and multichannel order management on firm performance. Thus, the study suggests that optimising logistics capabilities improves timely and accurate delivery, enhances coordination and communication, and broadens customer reach, thereby improving overall firm performance.

Keywords

• Order management
• Firm performance
• Logistics capabilities
• Small-scale firms
• Grapes processing