Eco-Friendly Factors Influencing Performance of Road Transportion Firms In Tanzania: a Case Of Selected Firms in Dar Es Salaam

Abstract

ABSTRACT

The road transportation sector in Tanzania is pivotal for economic growth but faces increasing pressure to adopt sustainable practices. Environmental concerns have prompted firms to explore eco-friendly strategies that enhance operational performance. This study examined eco-friendly factors influencing the performance of road transportation firms in Tanzania, with a focus on selected firms in Dar es Salaam. The main objective was to assess how green energy, recycled materials, and optimized packaging affect the operational and financial performance of these firms. The study adopted explanatory research design and quantitative approach in gathering and analysis of data guided by positivism philosophy. Simple random sampling techniques were used to select respondents within the transport firms. Data used in the study were collected using structured questionnaires and analyzed through descriptive and inferential statistics using IBM SPSS version 26. Descriptive analysis present results using means score and standard deviations, while inferential statistics analysis largely focused on multiple regression analysis to examined the relationships between eco-friendly practices and firm performance. The findings reveal  that the adoption of green energy has a positive and significant impact (β = 0. 279, p = 0.001) on performance of road transport firms by notably reducing fuel costs, improving fleet efficiency, and enhancing brand reputation. Similarly, the use of recycled materials demonstrates a positive and significant effect (β = 0. 178, p = 0.006) on performance of road transport firms, by contributing to waste reduction, resource efficiency, and operational cost savings. Furthermore, optimized packaging also shows a positive and significant influence (β = 0. 186, p = 0.010) on performance of road transport firms particularly by reducing cargo size and weight, leading to lower fuel consumption and improved financial outcomes. The study concludes that eco-friendly initiatives are vital drivers of competitiveness and sustainability in Tanzania’s road transport sector. the study recommends that the road transport firms to invest in renewable energy, integrate recycled materials, and adopt optimized packaging to improve environmental performance and strengthen their performance.