Boosting operational performance through logistics drivers: Evidence from manufacturing industry

Abstract

The aim of the study was to examine the impact of logistics drivers on the operational performance of large manufacturing industries in Ethiopia. To this end, the researchers employed an explanatory research design with a mixed approach. To select the case industries the researchers used the census sampling technique and stratified sampling technique for respondents’ selection. Both primary and secondary data were accessed about the issue to analyze. After the data collection process, the study used a partial least square structural equation model (PLS-SEM) to find the relationships between the hypothesized constructs. In this study, inferential analysis was made with the support of smart PLS software. The result of the finding depicts that the product of R2 Value specifies that 69.1% of enhancement in an endogenous variable (i.e., Operational performance) is caused by the joint results from the exogenous variable (i.e. Transportation, Inventory, and facility Management). The finding also shows that there are raw materials and currency problems that made the industries produce below their capacity.