Determining the role of influential factors on logistics outsourcing performance with mediating role of logistics outsourcing practices in Pakistan's Textile Sector

Abstract This research aims to analyze the effect of organizational capability, technological integration, and transaction uncertainty on logistics outsourcing performance in the textile manufacturing sector of Pakistan. A structured questionnaire was administered to 139 supply chain, logistics, procurement, and operations managers in Faisalabad, the hub of the textile sector, to collect data. SmartPLS 3.0 and SPSS 27 version was used for data analysis in this study. And Structural Equation Modeling (SEM) was applied to analyze direct and indirect relationships among key constructs, with logistics outsourcing practices examined as a mediating variable. The results indicate that organizational capability and technological integration positively and significantly affect logistics outsourcing performance. In contrast, the significant effect of transaction uncertainty on logistics outsourcing performance reflects the risks inherent in conditions of unpredictable supply and demand. Additionally, logistics outsourcing practices are found to mediate all three relationships indicating that operational mechanisms are essential for strategic assets and environmental factors into performance outcomes. The findings support Resource-Based View and Transaction Cost Theory by proving that internal resources and external environmental uncertainties intervene with the outsourcing outcomes via operational execution. It has practical implications for logistics managers in terms of formalizing processes, investing in technology that is aligned with operations, and managing uncertainties through disciplined logistics practices. It also highlights the importance of longterm relationships with logistics service providers. While the study offers many insights, the limitations relate to the cross-sectional nature and focus of the industry. Future research needs to focus on longitudinal design, cross-sectional studies, and other moderating and mediating variables. Overall, the study provides a novel contribution to the literature on logistics outsourcing by tying the strategic intent with operational performance, especially in the context of a developing country