Determinants of third-party logistics (3PLs) performance: in the case of humanitarian aid operations of INGOs & UN agencies in Tigray

Abstract

Third-party logistics (3PLs) service providers have the pivotal role toward facilitating in delivery of humanitarian aids to save lives and alleviate suffers of vulnerable society in crisis areas like Tigray. This study aimed to identify the internal and external factors influencing the performance of third-party logistics (3PLs) service providers in delivering humanitarian aids from INGOs and UN agencies in Tigray. The study employed mixed-methods of quantitative and qualitative approaches, and it selected 84 respondent samples by using purposive sampling from INGOs, UN agencies, and 3PLs providers. Quantitative data were collected via Likert-scale surveys and analyzed using descriptive statistics and multiple linear regressions (MLR) model, while qualitative data were analyzed through content analysis method. The MLR tested ten hypotheses regarding to factors affecting 3PLs performance. Results confirmed that firm experience, organizational capacity, long-standing relationships, and risk management significantly and positively affect performances of 3PLs service providers while Political instability was found to have a significant negative impact. Other factors such as service quality, technology usage, and cost-effectiveness were not statistically significant. The model explained 78.6% of the variance in 3PLs performance, indicating strong explanatory power. Qualitative\ findings highlighted political instability, infrastructure damage, resource constraints, managerial weaknesses, and regulatory challenges as major barriers. Implications suggest that improving logistics performance requires strengthening firm capacities, fostering strategic collaborations, advancing risk management, upgrading fleets and infrastructure, incorporating technology, and advocating for political stability. Overall, this comprehensive analysis of the study provides actionable empirical insights and actionable strategies for humanitarian actors and policymakers to optimize the performances of 3PLs service providers to deliver humanitarian aids in the complex operational conditions effectively in conflict-affected regions like Tigray.