Managing logistical supply chain drivers: A predictor of small township retailers’ odds of survival

Abstract

Orientation: Formal independent small Sowetan retail businesses operate under challenging economic conditions that impede their ability to survive. However, the management of the logistical supply chain drivers can increase these small retailers’ odds of survival.

Research purpose: To investigate whether the management of the logistical supply chain drivers can serve as a predictor of formal independent small Sowetan retail businesses’ odds of survival.

Motivation for the study: Assisting formal independent small Sowetan retail businesses to integrate with local and formal supply chains, as well as increasing their odds of survival amidst the difficult economic conditions under which they operate.

Research design, approach and method: A quantitative survey was conducted among 650 formal independent small Sowetan businesses, of which the responses of 556 retailers were analysed. Two binary logistic regression models were developed to determine whether the management of the logistical supply chain drivers could predict the small retailers’ odds of survival.

Main findings: The results of two binary logistic regression models showed that the management of the three logistical supply chain drivers influences the odds of formal independent small Sowetan retail businesses surviving for 5 years or longer, as well as their odds of growing their annual income.

Practical/managerial implications: Assisting policymakers when designing developmental initiatives for townships.

Contribution/value-add: This study strives to assist formal independent small Sowetan retail businesses operating within a developing country to manage their logistical supply chain drivers to increase their odds of survival and contribute to the economic development of their country.