Effect of Road Transport Infrastructure on Business Logistics performance The Case of East Africa Bottling Company

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Addis Ababa University


The ability to transport goods quickly, economically and reliably is vital to success of business and to a nation's prosperity & capacity to compete in globalized economy. The objective of this study was to analyze the road transport infrastructure effect on business logistics performance of EABC. Analysis of Road transport require determination of different dimension :consolidation, scheduling, accessibility, safety ,efficiency, route choice and degree of effect on road transport operation The problems of late delivery, high inventory level, longer time to settle back order and replaced deteriorated products on time and infrustructural problems were the critical factors that initiated this study for investigation. Both descriptive and an explanatory research design was employed with a sample of 101employees that was 80 of the response rate. A questionnaire was used as a research tool for collecting data. Available data on these factors was gathered, processed and checked for continuity and consistency. The road transport and business logistics performance data were in filled using the Five Point Likert-Scale while the Cronbach Alpha was used to check the data for reliability of measurement scale. The relationship between independent variables (road transport) and dependent variables (business logistics Performance) are also cross-checked from Pearson correlation matrix. To predict the effect of road transport on business logistics performance, single linear regression model was adopted. the independent variable was statistical significant with p-value of less than 0.05 The study concluded that achieved business logistics performance indicated that ;improved quality of road reduced lead times and inventory levels, and customer’s requirement and order fulfillment haven’t influenced firm performance. The overall assessment results of the model revealed that the model had satisfactory statistical power in predicting the research model. Generally, the study showed that the superior business logistics performance can be attained through quality of road improvedIt is recommended that To increase organizational business logistics performance and stockholders capital ,it is better for the organization to outsource the transport service.



road transport, infrastructure, business logistics and performance