The Mediating Role of Training and Development on the Relationship between Supply Chain Management and Operational Performance of Selected Manufacturing Firms in Mogadishu, Somalia

Abstract

The purpose of this research is to assess the impact of training and development on the relationship between the practice of supply chain management (SCM) and operational performance (OP) within the context of the manufacturing firms located in Mogadishu, Somalia. A quantitative analysis of 367 employees from 10 major companies in Mogadishu was conducted.  The research focused on the interrelationship of operational performance and five SCM practices; namely, information sharing, lean manufacturing, delay strategy, strategic supplier partnerships, and customer relationship. Further, the research focused on the impact of training and development on the mediation of the interrelation. The study employed Structural Equation Modeling (SEM) to assess the direct and indirect relationships. The study established that operational performance is positively and significantly impacted by lean manufacturing and customer relationship. In contrast, the study found that the performance is not directly influenced information sharing and strategic supplier partnership. The study established that training and development positively impacted the mediation of the interrelation between the SCM strategy and performance, with the exception of lean manufacturing which showed strengthened direct impact. The study found that operational performance is significantly affected as a result of the acquired knowledge and experience from the application of lean manufacturing, delay strategy, and customer relationship management. The study will help the Somali manufacturers to understand the need to enhance supply chain management, training and development. The mediation role that employee learning functions aids understanding the importance of learning in the context of other strategic initiatives. The study also addresses the contextual nature of how management functions and performance in challenging environments.