The role of diversification of services on firm performance: the case of freight forwarders in Tanzania

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University of Dar es Salaam
The aim of this study was to find out the role of diversification of services in relation to firm performance in a freight forwarding industry. The study focused on specific issues to determine whether diversification of services is positively related to profitability of freight forwarders in Tanzania, to establish whether the more diversified service portfolio of freight forwarding firms in Tanzania leads to higher sales volumes and to assess whether diversification in freight forwarding firms leads to customer satisfaction. A survey of 33 freight forwarding firms in Dar es Salaam was carried out. Primary data was collected by using a questionnaire while secondary data was obtained through documentary review. Regression analysis was employed to analyze data using Statistical Package for Social Science (SPSS).It is concluded that there is a negative relationship between diversification of services and firm performance. The other findings of the study revealed that there is a positive relationship between a diverse service portfolio and the sales volume even though the difference was so small. On the other hand, results showed that diversified service provision had a positive relationship with customer satisfaction. However, when both relationships were tested statistically, they were not significant. It is recommended that managers should stick to their core business and improve their efficiencies in order to improve profitability, sales volume and customer satisfaction.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HE597.T34D82).
Freight and freightage, Diversification in industry, Tanzania
Dube,E. (2016) The role of diversification of services on firm performance: the case of freight forwarders in Tanzania,University of Dar es Salaam, Dar es Salaam