INFLUENCE OF THIRD-PARTY CLIENT COLLABORATION ON THE PERFORMANCE OF THE TRANSPORTATION COMPANIES IN TANZANIA: A CASE OF NGS INVESTMENT LTD

Abstract

ABSTRACT This study investigated the impact of trust, communication strategies, and commitment levels on NGS Investment Ltd's performance in its relationships with third-party clients in the logistics sector. The primary objective of this research was to examine the influence of trust, communication, and commitment on NGS Investment Ltd's performance. A quantitative research approach was used, utilizing a structured Likert-scale questionnaire to gather data on key indicators of trust. Diagnostic tests were conducted, including reliability assessments, multicollinearity checks, heteroscedasticity tests, and model fitting analysis. The findings revealed that trust significantly impacted performance, with the model demonstrating a Cronbach’s Alpha of 0.752, indicating acceptable internal consistency. The model fitting analysis showed a statistically significant improvement by including trust variables (Chi-Square = 92.252, df = 5, Sig. = 0.000), underscoring trust as crucial in establishing good client relationships that drive performance. Similarly, communication strategies were found to have a strong, positive influence on performance, supported by a high Cronbach’s Alpha of 0.894, reflecting excellent reliability. The statistical model showed significant results for communication variables, with the final model achieving a Chi-Square of 54.531 (df = 5, Sig. = 0.000), indicating that structured, clear, and timely communication enhances coordination and decision-making between NGS Investment Ltd and its third-party clients. Additionally, commitment levels demonstrated a significant positive impact on performance, with a Cronbach’s Alpha of 0.747, confirming acceptable internal consistency. The model fit showed a significant Chi-Square value of 92.252 (df = 5, Sig. = 0.000) for commitment variables, indicating that solid commitment enhances partnership quality, operational resilience, and efficiency. In conclusion, this study establishes trust, effective communication, and commitment as an essential components for optimizing NGS Investment Ltd’s performance with third-party clients. By prioritizing these elements, NGS Investment Ltd can achieve sustainable growth and competitive advantage in logistics.