Logistics Outsourcing Decision Factors Among Small Businesses in the Textile Sector of Aba, Abia State

This study explores the factors influencing logistics outsourcing decisions among small businesses in the textile sector of Aba, Abia State, South East Nigeria. Aba is renowned as a major textile and garment production hub, with thousands of small firms managing complex inbound and outbound logistics for raw materials and finished goods. Logistics outsourcing decisions in this context are influenced by cost considerations, capability gaps, trust in service providers, and strategic competitive pressures. Using a descriptive survey design, structured questionnaires were administered to 100 small business owners and managers in the Ariaria International Market and Factory Road textile cluster. The study identifies and ranks the factors driving outsourcing decisions across five categories: cost reduction motivation, core competency focus, logistics capability gaps, service provider reliability, and government incentive awareness. It also examines the barriers to outsourcing including perceived loss of control, service quality uncertainty, and limited formal logistics market options in Aba. Descriptive statistics and factor analysis are employed to group and rank decision drivers. The study draws on transaction cost theory and outsourcing decision literature applicable to SME contexts in developing economies. Findings are expected to show that cost reduction and capability gaps are the primary outsourcing motivators, while service quality uncertainty is the dominant barrier. Recommendations address logistics providers, SME development agencies, and industry associations on designing outsourcing packages suitable for small textile businesses. Keywords: logistics outsourcing, decision factors, textile sector, Aba, small business.