Factors Affecting Logistics Performance: The Case of Selected Logistics Service Providers in Ethiopia
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Date
2023-07
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Addis Ababa University
Abstract
Logistics is crucial to international trade because it links suppliers and customers. Therefore, enabling the delivery of the right product, at the right location, at the right time, in the right condition, at the right cost, and in the right quantity to the right consumer is essential to economic progress. In recent years, the global logistics industry has expanded dramatically, and logistics has also grown in importance as a component of the commercial economic system and a key worldwide economic activity. However, based on subsequent the World Bank’s and other relevant agencies report the logistics performance of Ethiopia have been very low, does not show significant progress year after years and it is hampering growth of trade and manufacturing industries. The main objectives of this study were to identify the factors that affect logistics performance, specifically in the case of selected logistics service providers in Ethiopia where there head office is in Addis Ababa’. The study has empirically assessed the key areas which are sought to affect logistics performances. Relevant and related studies have been reviewed and it was made possible to understand the level performance and developments in the subject area. Therefore, suitable conceptual framework was taken out. A mixed type of research approach was followed to exploit the advantages of qualitative and quantitative methods. Using Cochran sample size determination technique used to draw the sample size was determined to be 115 while only 85 were able to be collected and used for the data analysis. Closed ended questionnaire was distributed to freight forwarding logistics service providers’ employees who are at the top level of the respected companies. Both descriptive and inferential statistical techniques were used to analyze the data. To ensure that the data acquired were sufficient for drawing statistical inferences, appropriate tests such normality and multicollinearity were undertaken. The findings of the study indicated that the overall performance level of Ethiopian logistics companies was found to be low and determined that economic, technological, geography, infrastructure, management and political factors are determinant factor for logistics performance while human component has a negative and non-significant relationship with logistical performance, whereas legal, social, and operational aspects are positively and non-significantly associated. Therefore, it is recommended that concerned stakeholders can use the identified logistics performance factors to measure the level of the logistics sector performance and it can be used also for future research foundation in the Ethiopian logistics sector development
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Logistics