The Mediating role of Innovation on the Nexus Between Logistics Management Practices and Operational Performance: Cameroon’s Manufacturing Context

Abstract ―​

This study employed the cross-sectional survey research design, with primary data collected from 182 manufacturing firms in the South west and littoral regions in Cameroon using the simple random sampling. Regression and causal mediation analysis, based on Baron and Kenny (1986) and Zhao et al. (2010), were conducted using STATA software. Overall, the results reveal a significant positive impact of logistics management practices on operational performance. Specifically, the results show that order processing, transportation management and reverse logistics are positively associated with higher operational performance. However, the result indicates that, the implementation of inventory management is associated with lower levels of operational performance, with a negative coefficient of -0.106. Additionally, testing the correlation between innovation and operational performance revealed that innovations significantly enhance operational performance in manufacturing firms. Mediation analysis also revealed that logistics management practices, especially through order processing, transportation management and reverse logistics have a direct positive effect on operational performance and a positive indirect effect through innovation. Based on these findings, this study recommends that manufacturing firms, in pursuit of their operational performance, should effectively implement logistics management practices. Also, manufacturing firms should develop a strategic plan to facilitate the implementation of innovative solutions. Finally, this study suggests that manufacturing firms should consider implementing decentralised order points, collaborating with third-party carriers and the use of larger vans to transport goods, and utilising modern suitable inventory techniques, given the observed inverse relationship between inventory management implementation and operational performance.