Assessment of the construction logistics operation challenges and evaluating effects on performance (In the case of grade one contractors)

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Addis Ababa University


This study examined the influence of challenges in implementing the logistics operations in the construction industry being the independent variables, on the performance of construction firms being the dependent variable. Previous researches showed that current systems adopted in carrying out logistics operations in the construction industry is relatively inefficient when compared with other industries such as retail and manufacturing in which, it was considered as a basis for carrying out the research. The factors considered as a root cause to this inefficiency were examined by studying their effect on the performance of the firm. This study aims to examine the performance of construction industry from logistics perspectives. It tries to identify the challenges in construction projects logistics and propose possible solutions to address the inefficiencies. The study used both descriptive and explanatory research designs based on data from primary and secondary sources. The target population for this study was the grade one contractors operating in Ethiopia who are either registered or have upgraded their license from Ministry of Works and Urban Development (MoWUD) by the end of the year 2016 and the respondents were either from the logistics or engineering departments of the firm. Questionnaire was administered through the e-mail survey and hand delivery. After the questionnaire was tested for validity and reliability analysis using both quantitative and qualitative techniques were used with the assistance of SPSS software program version 22. The study implied that reduction in construction wastes and theft were the most significant predictors of firm performance. The results support the current theories related to the study. Based on previous researches the rest of the variables considered also affect the performance of construction firms as a whole but needs further study to verify their effects on the performance of the firms in different settings. Consequently, this study provides firms’ managers the challenges that are expected in construction firm regarding the logistics department which enables them to plan ahead and devise ways that they could alleviate these challenges from their system so that their companies could develop a competitive edge.



independent variables, construction industry, administered through