Factors Affecting Logistics Performance: The Case Of Ethiopian Logistics Service Providers

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Addis Ababa University


The international trade is growing very rapidly with the emergence of globalization and at the same time the demand for effective and efficient international freight logistics services and the need for its performance is ever changing to win the competition in the market place. 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 Ethiopian logistics sector is reserved for the citizens or local companies by the proclamation number 549/2007. The main objectives of this study was to identify the factors that affects logistics performance, specifically in the case of Ethiopian logistics service providers’. The study have 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 151 while only 113 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 their respected companies. The findings of the study indicated that the overall performance level of Ethiopian logistics companies was found to be low and determined that social, technological, legal, infrastructure, social and political factors are determinant factor for logistics performance effectiveness while operational factors are a determinant factor for efficiency. In the meantime product, image organizational and positioning factors are a key determinant factors for logistics service differentiation. 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.



performance,, efficiency, effectiveness, differentiation.