The Impact Of Delivery Delay On Firm Performance In Tanzania : A Case Of East African Spirit(T) Limited

Abstract

This study investigated the impact of delivery delays on Tanzanian firm performance. In Tanzania, the study assessed the impact of inaccurate demand forecasting, inadequate stock levels, and inefficient order fulfillment on firm performance. We collected both primary and secondary data through closed-ended questionnaires and documentary reviews. We used a cross-sectional research design and a quantitative research approach. We employed purposive sampling and agency theory. Stata version 15 was utilised for the data analysis. The Ordinary Least Squares (OLS) regression model's coefficients were produced. The study showed that inaccurate demand forecasting had a positive effect on firm performance. This effect was statistically significant at the 1% level, which means that if demand forecasting went up by 1%, the firm's performance would go up by 79.2%, all other factors remaining the same (p<0.000). However, the negative impact of stock levels on firm performance was statistically insignificant. On the other hand, order fulfillment had a positive impact on firm performance, but was statistically insignificant. The study concludes that demand forecasting was critical in influencing firm performance. The study recommends that East African Spirit(T) Ltd should enhance demand forecasting so as to ensure production processes are smooth and improve the firm’s bottom-line profitability. The study suggests conducting additional research on the listed firms in Tanzania.