Impact of Logistics Capacity on Economic Sustainability of SMEs

Abstract

In this research paper, various impacts on economic sustainability of small and medium-sized companies are analyzed. This research determined a research gap, by defining a statistically significant difference in business performance between SMEs (small and medium sized businesses) with their own logistics capacities and those which decided to outsource capacities. Impacts of key business factors were measured by quantitative research by using linear regression, on a sample of 340 SMEs from Serbia. These factors are related to market aspects, SME position within a supply chain, but also to internal aspects of the company itself. Empirical research findings suggested that ownership of logistics capacity can have an impact on economic sustainability of SMEs, measured through solvency and profitability. Future research regarding this topic can be diversified through efforts of internationalization of SMEs, or through comparison with large companies in terms of impacts on economic sustainability.