Examining the impact of logistics outsourcing on performance: evidence from emerging economy

Background: In a competitive business landscape, outsourcing has been thoroughly scrutinized as a phenomenon, with existing literature primarily exploring its advantages and risks while frequently neglecting its role as a mediator in improving the logistics performance of companies. This paper seeks to discern the determinants of logistics outsourcing and its contributions to the logistics performance of Moroccan agribusiness. Methods: This study relies on quantitative analysis, involving a survey of 93 Moroccan agribusinesses. The aim is to assess the hypothesized relationships between latent constructs by specifying and estimating the overall model using the partial least squares structural equation modelling (PLS-SEM). Results: The findings reveal that companies can engage in outsourcing for both operational and strategic reasons. Operational motivations are tied to the pursuit of efficiency and performance, while strategic motivations involve optimizing management and modernizing the organizational structure. However, before deciding to outsource, companies must conduct an analysis of the associated risks. The results confirm that logistics outsourcing is adversely affected by the risk of loss of autonomy, loss of control, and the issue of hidden costs. Conclusion: The research gap was successfully discovered by the study, and the results could have theoretical as well as practical implications. It is hoped that the findings will inspire more academic study in this field.