Logistics Knowledge, Logistics Information, Logistics Location and Operational Performance: A Case of Pharmaceutical Companies in Uganda.
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Date
2024-11-14
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Makerere University Business School
Abstract
Despite significant expenditures in logistics knowledge, information, and location, pharmaceutical businesses in Uganda continue to struggle with consistently poor operational performance in terms of flexibility, delivery time, order efficiency, and inventory turnover (NDA Annual report, 2022). The study was supported by the resource-based view framework proposed by Barney (1991). The study investigated the correlations among logistics knowledge, operational performance, logistics information, operational performance, and logistics location, operational performance. In addition, the study also assessed the ability of logistics expertise, logistics information, and logistics location to predict operational performance. A cross-sectional survey design was employed. Out of the intended sample size of 162, a total of 146 questionnaires were completed and returned, resulting in a response rate of 90.1%. This response rate is considered sufficient for data analysis. The study's findings suggest that there is a strong and statistically significant correlation between expertise in Logistics and operational performance (r = .559**, p < .01). The findings also demonstrate a strong and statistically significant correlation (r = .814**, p < .01) between logistical information and operational performance. Furthermore, there exists a strong and statistically significant correlation (r = .761**, p < .01) between the location of logistics and operational performance. The findings also suggest that logistic location, logistic knowledge, and logistic information have a significant predictive power of 74.3% on operational performance (Adjusted R square=.743). The study's findings indicate that an increase in understanding of logistics is linked to a favorable and modest improvement in operational performance. Furthermore, there is a direct correlation between logistical information and significant improvements in operational performance. Moreover, a shift in the location of logistics is closely linked to favorable improvements in operational performance. The study also determined that the combination of logistics knowledge, logistics information, and logistics location has a substantial and statistically significant impact on operational performance. The study suggests that pharmaceutical businesses in Uganda should build a system to continuously monitor and evaluate logistical sites in order to adapt to changing business conditions. In addition, it is important for organizations to periodically evaluate the correlation between logistics facilities and operational objectives, including changes in market requirements, supply chain arrangements, and technological progress. In addition, it is crucial for policymakers, such as government entities like the National Drug Authority and the Pharmaceutical Society of Uganda, to acknowledge the significance of logistical information in shaping operational outcomes. This can be achieved by prioritizing ongoing training and skill enhancement for the workforce.
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This is a master's thesis.
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Citation
Nimusiima, G. (2024). Logistics Knowledge, Logistics Information, Logistics Location and Operational Performance: A Case of Pharmaceutical Companies in Uganda. (Unpublished master's dissertation). Makerere University Business School, Kampala, Uganda.