Effects of Beverage Smuggling in The Supply Chain Industry: A Case of The Cold Chain Zambia Ltd
DOI:
https://doi.org/10.47941/ijscl.422Keywords:
Beverage, Business Performance, Smuggling, and Counter StrategiesAbstract
Purpose: The aim of the study was to establish strategies that can counter smuggling of beverages and improve business performance for The Cold Chain Zambia ltd. Smuggling poses a threat to the business as it destabilizes the legal industry of supply chain, restrains innovation and investments as well as posing a threat of company closures. Smuggling has caused loss of consumer confidence in buying beverages from Cold Chain Zambia ltd as the products are perceived to be expensive as compared to similar smuggled beverages in the market. The objectives of the study were to determine the extent of the effects of beverage smuggling on the Cold Chain Zambia business performance, to identify strategies which will counter beverage smuggling and to establish strategies that can be used to counter beverage smuggling and improve Cold Chain Zambia business performance.
Methodology: The research design that was used was mixed methods which took the form of exploratory sequential mixed method design. The target population was 80 employees from Cold Chain Zambia ltd which included both general staff and management staff.
Findings: There seems to be no correlation between business performance and strategies to counter beverage smuggling. In this case, H3: There is a significant correlation between the business performance and the perception of strategies to counter beverage smuggling in cold chain supply and was rejected. It was found that there is a negative and significant correlation between beverage smuggling and strategies to counter beverage smuggling on business turnover (F = 14.339; p<0.001).
Unique contribution to theory, policy and practice: The researcher recommended that smuggling can be reduced by ensuring the goods are sold at competitive prices to reduce benefit of smuggling, continue with quality control, educate the public on smuggling and how to report and identify smuggling, stiffen law on smuggling in Zambia and review the clearing procedure at all points of entry to fasten the process.
Downloads
References
Christopher,A.(2016). Logistics and Supply Chain Management. New York,USA.Pearson Education Press.
Doll,M.B(2017) . Strategic management. An empirical investigation of selected strategy variables on firms' performance. A study of supply chain management in large private manufacturing companies in Kenya. Prime journals, 9-18
Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of management Review, 20(1), 65-91.
Donlon, M. (2005). The moderating effect of group decision making. Stockholm school of economics.
John,S.K (2000). Corporate governance and firm performance. Evidence from Malaysia public listed companies. University of Pittsburg.
Laurent. T., L. (2013). Consumption prices of counterfeit goods in the Italian context, journal of brand management. The quarterly journal of economics. Vol,103 Issue 1 pp 79-100.
Sanda, A., Mikailu, A., & Garba, T. (2005). Corporate governance mechanisms and firm financial performance in Nigeria: African Economic Research Consortium, Research Paper, 149.
McClellan, W. S. (2013). "Smuggling in the American Colonies" (Book Review). American Academy of Political and Social Science 47:282.
Meindl,P.(2015).Supply Chain Management: Strategy, Planning and Operation (6th ed). New York,USA.Pearson Education Press.
Nduati,C.W.(2014). Measures That Can Be Taken to Fight Smuggling in Kenya. (Doctoral Dissertation,United States International University-Africa)
Noble,H.K( 2015). Consumer accomplices in product smuggling. A review of the beverages smuggling in the North of America. Oxford Press.
Pellisier, G. (2007). Research Methods for beginners. An insight. Singapore. John Wiley and sons.
Philips. (2006) Smuggling: A History 1970-1990. Great Britain: David-And-Charles-Publishers.
Ricardo, B. N (2001). Board meeting frequency and Firm performance. Great Britain: David-And-Charles-Publishers.
Slater, K. (2006). Scarcity effects on Value. A Quantitative Review of the commodity theory literature. Washington DC: American Council on Education.
Tan, K. C. (2001). A framework of supply chain management literature. European Journal of Purchasing & Supply Management, 7(1), 39-48.
Thomas, K, L. (2005). Effects of beverage smuggling on the image of legal brands: An empirical study from the customer perspective. Journal of Brand management Vol 18. Issue 2, pp 159-173.
Thompson, P.A. (2013) Consumer concern, knowledge, and attitude toward renewable energy: an application of the reasoned action theory. New York Press
Turnbull, M, H. (2002). The role of research objectives in modern day research methods. Blackwell publishing company.
Downloads
Published
How to Cite
Issue
Section
License
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
