Influence of cost and time of transportation on business performance of multinational organisations in Nigeria

Abstract

The goal of this study is to demonstrate how transportation costs and time affect multinational business organisations by assessing how freight clearance variables (cost and time) and inland transport factors (cost and distance) affect the financial performance (sales costs and turnover) of multinational organisations in Lagos and Ogun states, Nigeria. The study utilised a questionnaire survey for primary data collection, while secondary data was sourced from the annual reports of the sampled firms. The study focuses on eight manufacturing organisations selected from listed companies between 2010 and 2019 that regularly transport goods via the maritime mode of transport. The study employs SPSS to perform multiple regressions on the eight manufacturing organisations and finds that freight clearance variables (cost and time) have a negative impact on sales costs between 2010 and 2019, while inland transport factors (cost and distance) have a positive effect. Furthermore, the research demonstrates that whereas freight clearance variables (cost and time) have negative effects on turnover, inland transport variables (cost and distance) have positive effects. The study indicates that minimising freight clearance costs and time could significantly enhance the performance of Nigeria's multinational business organisations. Similarly, reducing inland transport costs and adjusting port-business time can significantly improve Nigerian businesses' performance.