Mlimbila and Mbamba Journal of Shipping and Trade (2018) 3:10

https://doi.org/10.1186/s41072-018-0036-z
Journal of Shipping
and Trade

ORIGINAL ARTICLE Open Access

The role of information systems usage in

enhancing port logistics performance:
evidence from the Dar Es Salaam port,
Tanzania
James Mlimbila and Ulingeta O. L. Mbamba*

* Correspondence: ulingeta.
[email protected] Abstract
University of Dar es Salaam, Dar es
Salaam, Tanzania This study investigated the role of information systems usage in enhancing port
logistics performance using the port of Dar es Salaam, Tanzania, as an example.
Specifically, the study examined the role of information systems usage in
contributing to reducing shipping and trucking costs, improving on-time delivery of
goods and services, increasing trade volume, and enhancing organisational logistics
capability. The study employed a quantitative approach, with questionnaires
deployed to gather data about information systems usage and the attendant effects.
The reliability was measured using Cronbach’s alpha. A canonical correlation analysis
was performed to estimate the relationship of information systems usage to the port
logistics performance. The study established that relationships exist between
information systems usage and the perceived decrease in shipping and trucking
costs, timely delivery of goods and services, perceived increase in trade volume, and
enhanced organisational logistics capability. Based on these findings, the study
recommends that ports consider building the capacity of their employees to utilise
and manage information systems much more effectively and efficiently to increase
the port’s performance.
Keywords: Port logistics performance, Information systems usage, Organisational
capability

Introduction
Background of the research problem
World trade, in our increasingly globalised and networked economy, depends on the
rapid and timely transportation of goods from manufacturing places to market areas
(Gidado 2015). In this regard, port activities and transportation network operations are
inseparable, as good performance of the port is linked to its information systems usage
(Wilson et al. 2015). Port congestion in Africa is an inevitable seasonal occurrence that
is largely associated with improper planning and inadequate equipment or infrastruc-
ture that could otherwise support the transport and logistics network African ports
need. Information systems constitute one of the solutions for addressing the challenges
that occur in many processes that are important for the economic development of a
nation (Pierson and Harner 2006). Information systems collect, supply, arrange, and
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Mlimbila and Mbamba Journal of Shipping and Trade (2018) 3:10 Page 2 of 20

use information to ensure the efficiency and effectiveness of an organisation’s opera-

tions (Pierson and Harner 2006). According to Nowduri (2011), information systems
enable management to quickly make decisions about different issues in the organisa-
tion. These information systems have become important in logistics service (Salin
2000) and entail a significant tool to reduce costs and effectively serve clients through
better customisation of the service provided (Salin 2000). The basic purpose of any in-
formation system is to help its users obtain a certain type of value from the information
in the systems, regardless of the types of information stored or desired value type. The
integration of information systems in logistics has contributed to competitive supply
chains that accord certain companies competitive edges in the market, with new
methods implemented to prevent any inherent danger and loss of life (Weiss 2011).
Dar es Salaam port, owned by the Tanzania Ports Authority, is Tanzania’s principal port,
with a rated capacity of 4.1 million tonnes dry cargo and 6.0 million tonnes bulk liquid
cargo (Tanzania Ports Authority 2017). Improved efficiency at the port can translate into
additional tonnage of imports and exports. In fact, the volume of cargo has continued to
record an upward trend, partly due to an increase in the use of information systems. The
port handles almost all of Tanzania’s international trade cargo and serves its landlocked
neighbouring countries of Malawi, Zambia, the Democratic Republic of the Congo,
Burundi, Rwanda and Uganda. These countries are connected to the port through two
railway systems and road networks, in addition to a pipeline in the case of Zambia.
However, the delay in cargo clearance and the resultant congestion at the port of Dar
es Salaam has become a matter of serious concern to all users of the port (Raballand et
al. 2012, Daudi 2010, Kunaka et al. 2016). As Dar es Salaam is a major port that serves
neighbouring land-locked countries, the Tanzania Ports Authority management should
ensure that port services satisfy regional customer needs, as congestion at the port re-
sults in the port losing a high percentage of its potential income. Potential income
could come from Kenya, Uganda, South Sudan, the Democratic Republic of Congo,
Zambia, Malawi, Mozambique, and even Zimbabwe. The changing business environ-
ment and globalisation continued to expose the port of Dar es Salaam to stiff competi-
tion, especially with the port of Mombasa in the north for cargo originating from and
destined to Uganda, Rwanda, the Democratic Republic of Congo (Kivu Province), the
northern part of Tanzania and South Sudan. To its south, Dar es Salaam port competes
with the Mozambican ports of Nacala, Beira and Maputo and the South African port of
Durban for Zambia, Malawi and the Democratic Republic of Congo (Katanga Province)
cargo. In the west, it competes with the Namibian port of Walvis Bay and the Angolan
port of Lobito for traffic with Zambia and the Democratic Republic of Congo (Katanga
Province).
Overall, the application of information systems at a given port should facilitate
process management and control of the flow of work, data interface to minimise the re-
capture of data (both within the organisation and with third parties), data validation to
prevent the costs of rework, performance measurement to manage the activities under-
taken and compliance with local regulatory requirements (Weiss 2011). Therefore, in-
formation systems in ports hold the potential for significant progress, particularly in
business management and public administration, by harmonising the manner of doing
business for both customs administrations and traders, hence greatly reducing the de-
livery times and allowing rapid access to information (Arnold et al. 2011).
Mlimbila and Mbamba Journal of Shipping and Trade (2018) 3:10 Page 3 of 20

In fact, the advancement of information systems enables containers’ operators to reduce

the manual effort in providing services and facilitating the timely information flow and
enhanced quality control in service and decision making (Kia et al. 2000, Ally and
Mbamba 2009). Moreover, the use of computer simulations has simplified handling com-
plex cargo facilities, leading to significant savings derived from the implementation of
electronic devices in port terminals operation (Kia et al. 2000). Against this backdrop, this
study investigated the role of information systems usage in port logistics performance
using the Dar es Salaam port as a case study.
Of the several schools of thought regarding the influence of information systems usage on
performance, a notable one is the productivity paradox, which claims that despite invest-
ments in information technology, there may be no corresponding productivity gains. The
paradox has been widely discussed and debated. Although empirical data have revealed no
improvement in productivity, those individuals who favour more investments in informa-
tion technology argue that the information age is not an industrial age; therefore, new met-
rics to measure productivity are necessary and not necessarily the same as those of the
industrial age. In addition, they argue that productivity is an output of many other factors in
addition to information technology. This debate also calls for the proper evaluation of infor-
mation systems usage; otherwise, the consequent effect may not be measured properly.
The productivity paradox dominated the debates in the early 1990s, which involved
more developed countries than developing countries. Subsequently, a debate about the ef-
fect of information systems usage in developing countries emerged. Whereas one school
of thought believes that developing countries can leapfrog from using information sys-
tems, i.e., there are positive effects of skipping some stages of development, negative ef-
fects are also prevalent; that is, information technology increases the gap between
developing and developed countries because developing countries do not have the pre-
requisite infrastructure to support new technologies, and hence, their implementation
may add more problems than it solves. However, effective usage of many new information
technological tools may require high bandwidth and some necessary technological infra-
structure that may not be present in some developing countries. In this regard, this study
aimed to determine whether investment in information systems usage has any effect –
particularly a positive one – on performance.

Statement of the research problem

Congestion at the Dar es Salaam port has been a critical pressing and challenging con-
straint. This problem has had adverse effects on port operations and performance,
which has resulted in tumbling revenue collections due to the divergence of some ship-
ping lines and customers. This result maybe a reflection of subpar operational perform-
ance among port operators, where one factor is not leaving the port on time
(Meersman et al. 2012). Over the past decades, solutions for many port information
systems have been developed to improve ports’ efficiency. These information systems
solutions have been developed to improve efficiency and meet the increasing demands
on ports without requiring the physical expansion of the ports in question (Ayfanto-
poulou et al. 2015). At a time when trade flows are down amidst rising competition,
the possibility of making large-scale investments in port automation with a fleet of ro-
bots is typically challenging (Ikediashi et al. 2016). Due to the challenges and
Mlimbila and Mbamba Journal of Shipping and Trade (2018) 3:10 Page 4 of 20

competitions of logistics performance in Tanzania, the study investigated the effect of

information systems usage on port logistics performance at the Dar es Salaam port,
which remains a serious concern for several port actors (Raballand et al. 2012, Daudi
2010, Kunaka et al. 2016).

Objectives and significance of the study

The main objective of this study was to investigate the role of information systems
usage in boosting port logistics performance. Specifically, the work examined the role
of information systems usage in contributing to the perceived decrease in shipping and
trucking costs, improvements in timely delivery of goods and services, perceived in-
crease in trade volume, and enhancement in organisational logistics capability at the
Dar es Salaam port.
Considering the inherent high stakes, this study is important because the port has re-
sponsibility for all aspects of the logistics and supply chain in Tanzania and globally.
First, the study findings empirically expose the positive effects of information systems
usage on ports performance. Second, on the practical side, the study informs port man-
agement about how to appreciate information systems usage and the attendant implica-
tions. The research can also inform policy makers about the role of information
systems usage in enhancing the operational performance of ports.

Literature review
Theoretical framework
This section provides theories that express the critical aspects of a successful technol-
ogy and the urgency environment required for organisation performance. The models
used in this study were task-technology fit and information systems success.
Task-technology fit theory contends that an information system is more likely to have
a positive impact on individual performance and be used when the capabilities of the
information system match the tasks that the user must perform (Goodhue and Thom-
son 1995). The proponents of this theory suggest various features that measure
task-technology fit, which include quality, ability to use, system reliability, and profit-
ability of the technology regarding the cost and time applied in delivering the service.
This model could be useful in information systems facilities in the port, such as for
software and other devices used to process customer information and all transactions
that involve the clearing, forwarding, and logistics of the port cargoes. This model sug-
gests that individual performance should match the task performed. The model has
been widely tested and, to a great extent, has been found successful, with some moder-
ating variables (Isaac et al. 2017, Chen and Huang 2017, Zha et al. 2018). Despite pri-
marily focusing on individual performance, task-technology fit has been equally applied
to organisations as a special case (Zigurs and Buckland 1998).
There are various models of information systems success, although those of DeLone
and McLean (1992, 2003) are the most common ones. DeLone and McLean (1992,
2003) contend that information systems usage influences user information satisfaction
and organisational impact through individual impact (DeLone and McLean 1992).
Later, they redefined organisational impact through individual impact, constituting the
net systems benefits (DeLone and McLean 2003). Despite their popularity, the DeLone
Mlimbila and Mbamba Journal of Shipping and Trade (2018) 3:10 Page 5 of 20

and McLean success models have also attracted criticism. One of the most notable crit-
ical works is that of Seddon (1997), particularly regarding two issues: first, the meaning
of information systems usage is unclear (Does the phrase imply benefitting from use?
Does it refer to actual use? Does it involve probable future use?). Second, evaluating in-
formation systems success in terms of temporal and causal settings at the same time
causes variance and process interpretations. However, Seddon (1997) proposes that in-
formation systems usage has individual, organisational and societal consequences. All
the models concur that the usage influences the performance of organisation. Rai and
others (Rai et al., 2002) tested these models and found that the models are relatively ac-
ceptable/valid despite other researchers commenting that the models do not necessarily
have an impact (Lee 2012). The model has even been tested recently (Tam and Oliveira
2017, Van Cauter et al. 2017, Ojo, 2017).
This research is based on the assumption that the possible impacts are perceived de-
creased shipping and trucking costs (customers), timely delivery of goods and services
(societal), perceived increased trade volume (organisational), and increased organisa-
tional logistics capability (organisational).

Empirical reviews
A large number of prior studies have addressed the information systems issue in the
logistics or supply chain fields. These issues included the willingness to adopt, the out-
comes of adoption, and the criteria for adoption (Panayides 2017; Heilig and Voß 2017;
Tsai et al. 2018, Saxe 2018). New directions in terms of logistics and supply chain
management are partially dictated by information technology (Li, 2014). Furthermore,
port adoption and usage of information systems tends to enhance competitiveness
(Panayides, 2017). As the issue of which factors drive usage has received significant
attention, this study focuses on the effects of usage.

Effect of information systems usage on logistical shipping and trucking costs

Christopher (2005) studied and found that logistics performance increase when the
members of the supply chain collaborate using Internet tools. Moreover, the study
showed that poor information systems resource management has repercussions for the
performance of the entire supply chain, leading to increased management costs.
Olugbode et al. (2008) conducted a case study that investigated the impact of the
adoption of new information systems on the old model of company operation. Obser-
vation and interviews were used to collect the requisite data. The study revealed that
the adoption of new information systems has led to different achievements in the
company. The achievement appeared in company operational practices and busi-
ness systems, which have reduced company operating costs. Almost all other stud-
ies found the same outcome (Mithas and Rust 2016, Carr 2016, Popa et al., 2016,
Shahriari et al. 2016).
Thus, it is hypothesised that information systems usage reduces operating costs.

Effects of information systems usage on timely delivery of goods and services

Idris et al. (2013) conducted a study that investigated the roles of information systems
usage in customer service delivery and firms’ performance. The survey research design
Mlimbila and Mbamba Journal of Shipping and Trade (2018) 3:10 Page 6 of 20

was applied to 25 firms. The study found that most of the customers rarely used online
services in their engagement with firms. This study recommends that firm administra-
tors to seek appropriate means of providing online services that parallel the customers’
ability to apply the technology. The study’s findings imply that the usefulness of infor-
mation systems to an organisation depends significantly on how the user and recipient
of the services interact when using such system.
Regan and Golob (2000) assessed the tracking industry perceptions of congestion prob-
lems and potential solutions in maritime intermodal operations. In all, 450 companies
were surveyed. The study revealed that information systems hint at particular promise of
reducing delays inside and outside the ports; however, the negative effect on trade is high
due to congestion. The findings imply that congestion affects trading activities, whereas
the adoption of information systems may reduce or alleviate the problem.
Adewoye et al. (2011) investigated the role of investment in information systems on ser-
vice delivery. The study observed that there is a close link between information systems
usage and services delivery. The findings show that the adoption of information systems
at a university allows different activities, such as examination processing, student registra-
tion and assignment provision, to be performed on time.
Obiri-Yeboah et al. (2013) assessed the types of technological facilities used by bank cus-
tomers and the challenges they faced. The results showed that the knowledge customers
had about the services affected the number of times they used the service and the number
of times they visited bank branches. The study findings imply information systems have
great contributions to service delivery on timely basis; however, the customers’ knowledge
about the technology also influenced the level to which customers used the technology.
It is therefore hypothesised that information systems usage enhances timely delivery
of goods and services.

Effect of information systems usage on increased trade volume

Kia et al. (2000) investigated the significance of information technology in cargo handling
operations. The study established that information systems become accurate in transfer-
ring and processing large volumes of data in international transport firms and port organi-
sations. In addition, the study found that the efficient port operation depended much on
the management’s control of the information technology applied in services delivery.
These findings imply that the proper use of information systems can bring about tremen-
dous improvements in organisational operations.
Ikediashi et al. (2016) conducted a study about the level of use of information systems
infrastructure in the construction industry and analysed the implications for construction
management practice. A quantitative questionnaire survey was employed; the study ana-
lysed data from 148 respondents using multiple regression analysis. The study established
managers as the primary users of information systems in terms of the variety of informa-
tion technology devices in the construction industry, with foremen emerging as the
least-frequent users of such technology. The study also established causal relationships
between information systems use and project performance in the context of construction
industry.
Daud-Norzaidi et al. (2007) prepared a paper regarding the impact of Internet applica-
tion among middle managers in the port industry. The results showed that Internet
Mlimbila and Mbamba Journal of Shipping and Trade (2018) 3:10 Page 7 of 20

application determines the level of performance among managers. Moreover, the study
found that the knowledge managers have about the capability of the Internet translates
into intensive use of the opportunities it engenders.
It is hypothesised that information systems usage increases trade volume.

Effect of information system usage on organisation capability

Bryan-Jean et al. (2008) performed a study that examined the role of information systems
in the context of international business and their contribution to supply chain perform-
ance. A qualitative approach guided a study with a desk review serving as a major data
collection method. The study established that information systems’ capabilities contribute
directly to improved organisational processes, such as co-ordination, transactions, specific
investments, absorptive capacity and monitoring. These improvements, in turn, contrib-
ute to strategic and operational performance outcomes. Against both a resource-based
and a transaction-cost theoretical background, it was suggested that partner interdepend-
ence and environmental, country and cultural factors moderate the process of information
technology contributing to performance. Although this study revealed that information
technology has a positive impact on organisational performance, the study did not show
how this effect occurs, which this study attempts to determine.
Hawajreh and Sharabati’s (2012) study the influence of information technology on
knowledge management practices in Jordan’s industrial companies. Practical data were
collected from 206 out of 1242 companies using a questionnaire. The results of the study
indicate that there was a positive relationship between information technology and know-
ledge management practices. The study concluded that information technology and
knowledge management practices are important sources of an organisation’s wealth and
therefore should be taken into account when formulating the company’s strategy.
Ringim et al. (2012) study mainly focused on determining the effects of information
technology capability on the organisational performance of Nigerian banks. Data were
collected via hand delivery of questionnaires. Using a probabilistic procedure in select-
ing the organisations as the sample, the findings showed that information technology
capability is related to the organisational performance of banks based on resource
based view of such organisational performance.
It is therefore hypothesised that information systems usage improves organisational
capabilities.

Research gap and conceptual framework

The literature reviewed shows that there no thorough study on the role of information
system usage in port logistics performance has been performed. In fact, the literature
has exhibited little concern about the direct impact of information systems usage on
the service delivery associated with the port logistics performance. Previous studies
concentrated mainly on the influence of information systems usage on organisations in
general. Therefore, this study examines the role of information system usage in enhan-
cing port logistics performance.
The conceptual framework guiding the study is presented in Fig. 1, which describes in-
formation systems usage as accelerating port performance measured in terms of de-
creased shipping and trucking costs, on-time service delivery, increased trade volume,
Mlimbila and Mbamba Journal of Shipping and Trade (2018) 3:10 Page 8 of 20

Fig. 1 Conceptual Framework. Developed by researchers from literature review

increased organisational capabilities, and improved service delivery, attributes that are also
affected by information systems usage.

Hypotheses of the study

The study was guided by four hypotheses:

Hypothesis 1: H1-Information systems usage results in decreased shipping and trucking

costs on logistics.
Hypothesis 2: H1-Information systems usage results in on-time delivery of goods and
services.
Hypothesis 3: H1-Information systems usage results in increased trade volume for
logistics.
Hypothesis 4: H1- Information systems usage results in increased organisational
capabilities in terms of logistics.

Research methodology
Research design
Positivism philosophy was used, especially to verify what researchers have said about the
role of information systems usage in enhancing port performance. This work employed a
cross-sectional study design. This design was deemed appropriate due to the nature of the
research and research area. Moreover, the study employed a quantitative approach, with
questionnaires deployed to gather information; the quantitative research was meant to de-
termine whether the role of information systems usage found by other researchers might
also be applicable in the case of the Dar es Salaam port.
The research design could have been performed using secondary data. Although data
on the performance of the port over the years were available, it was difficult to attribute
the increase or decrease to the use of information systems.
For convenience, the research used the Dar es Salaam port as a source of data. There-
after, three strata were created for the main three actors at the port: port employees,
Mlimbila and Mbamba Journal of Shipping and Trade (2018) 3:10 Page 9 of 20

revenue authority staff members, and clearing and forwarding agencies. Due to the na-
ture of this study, close-ended questionnaires based on the Likert scale of measurement
were used. The Likert scale was used to measure the respondents’ opinions/attitudes,
as commonly practised in social science research (Boone and Boone 2012). The attend-
ant questions sought to establish the extent/level to which the respondents agreed or
disagreed with a particular assertion. The scale used was strongly agree, agree, not
sure/undecided, disagree, and strongly disagree.

Sampling
The population of this study is all ports in Africa or developing countries. For conveni-
ence, the Dar es Salaam port was taken as a case example. Thereafter, three users of
the ports were selected to respond to the questionnaire. These users were importers/
exporters/transporters, clearing agents/port terminal operators, information and com-
munication technology officers/information development officers and other ordinary
employees. The researchers did not choose to concentrate on port employees only, as
they may have decided to answer questions in their own favour (and hence introduced
an element of bias). The self-administered questionnaires were left with the supervisors
who distributed them to their subordinates/peers.

Reliability and validity

Cohen et al. (2013) treat reliability as the consistency of data over time, which also
constitutes an accurate representation of the total population under study. Reliabil-
ity entails obtaining the same results or data when the research is repeated using
the same methods. On the other hand, validity is the capacity of the research tools
to measure what they are designed to measure. In this study, efforts were made to
ensure that the research instruments were both valid and reliable. In this regard,
the study used Cronbach’s alpha to assess reliability and pre-tested the question-
naire for validity.
To provide evidence that the components of the scale are sufficiently inter-correlated
and that the grouped items measure the underlying variable, Cronbach’s alpha was
employed. The Cronbach’s alpha reliability coefficient normally ranges between 0
(worst) and 1 (best).
This study used two out of six validity tests from Nelson and Ghods (1998), which
were theoretical meaningfulness of the concepts and observational meaningfulness of
concepts through pretesting the questionnaire (seeking other expert opinion about the
questionnaire) and pilot testing (administering the questionnaire on a small scale to
check whether the questions were clear).

Data analysis techniques

The data collected for each of the five variables were combined by computing the aver-
age after verifying that they correlated. Perhaps factor analysis would have been better;
however, it was not used in this study because it would have provided five uncorrelated
factors. These summed scores were used in canonical correlations. Canonical correl-
ation analysis, having foundations based on Pearson correlation, is a classical multivari-
ate data method for establishing correlations between two multivariate data sets. In this
Mlimbila and Mbamba Journal of Shipping and Trade (2018) 3:10 Page 10 of 20

study, canonical correlation analysis was used to estimate the effect of information sys-
tems usage in port logistics performance on the four criterion variables.

Operationalisation of the concepts

The study applied concepts generated from other studies. The concepts were reframed
to match with the existing situation in Tanzania. Moreover, the concepts were adapted
from other studies primarily because the role of information systems usage in port lo-
gistics performance is not a new concept among researchers; rather, its efficiency varies
depending on the organisational capabilities of each institution.

Information systems usage as a predictor variable

Brynjolfsson and Hitt (2000) define an information system as a computer and related
digital communication technology that has extensive power to reduce the costs of using
information technology in the following task or activity co-ordination, communication,
and information processing. The study determined to what extent the port’s tasks or
activities benefiting from the application of information technology are effective in
terms of hours and days spent on computers. Although the authors of this paper ac-
knowledge the meaning of usage as advocated by Seddon (1997), this work focuses on
the actual usage due to the nature of this study.
Information systems usage was measured based on the time and duration spent on
performing duties in the office using the appropriate information systems, the process-
ing time and the dependence of information systems performing tasks.

Shipping and trucking cost as a criterion variable

The study used the definition of shipping and trucking cost by Austin (2015), who de-
fined it as the price incurred at which a certain cargo is delivered from one point to an-
other. This price is much affected by the goods delivering process and the distance to
the delivery destination. The major concern was to see how information systems facili-
tated the reduction of the waiting time, the delivery cost, and the storage time, which
decrease as a result of on-time cargo operations. The trucking and shipping cost of lo-
gistic performance was measured using the waiting time, movement of the ships, the
delivery costs and storage time.

On-time delivery of goods and service as a criterion variable

The study adopted the definition by Gunasekaran et al. (2004), which describes on-time
delivery as a measure of process and supply chain efficiency that measures the amount of
finished goods or services delivered to the customers on time and in full. The study
looked at the extent to which the technology managed to facilitate time discharge and the
transaction process of cargo and services as well as the movement of the ships and trucks.
On-time delivery of goods and services was measured through the simplifications of
transactions, mobility of ships and trucks, and decreases in service delivery costs.

Trade volume as a criterion variable

The study used a definition by Young and others (2008) of trade volume as the total
quantity of shares or contracts traded in a specified time. It measures how much of a
Mlimbila and Mbamba Journal of Shipping and Trade (2018) 3:10 Page 11 of 20

given financial asset has been traded in a given period. In this regard, the study deter-
mined to what extent new technology managed to shorten the waiting time of ships
and port customers, managed to increase the productivity, and managed to link the
Dar es Salaam port with other ports. The trade performance/ volume was measured by
looking at the enhanced efficiency, waiting time, turn around, connectivity, and the dis-
couragement of idleness in port operations.

Organisational capability as a criterion variable

The concept of organisational capability was applied to infer the company’s ability to manage
resources such as employees to gain an effective advantage over competitors (López-Cabarcos
et al. 2015). As such, the company needs to focus on the business’ ability to meet customer
demand. López-Cabarcos et al. (2015) argue that organisational capabilities must be unique
to the organisation to prevent replication by competitors. Hence, this study focused on how
information systems usage impacts the operations at the port of Dar es Salaam. These
organisational capabilities were measured in terms of effective communication among the
workers, the adequate awareness of the new applied information technology, increased
intrinsic motives of the workers to provide standard service, tendencies of knowledge sharing
from external resources on the new adopted technology, staff being able to apply the new
adopted information technology, and co-ordination in running organisation’s activities.

Other variables
The study captured the respondents’ demographics, including age, gender, education and
others, to determine whether the sample selected represented the population of the study.

Findings and discussion

Sample profile of the research study
The study captured both gender attributes of males and females in the field. The data
collected revealed that the number of male respondents was more than double that of
the female respondents who provided information for the study (Table 1).
The study had four age groups. The groups were 18–30, 31–40, 41–55 and above
55 years. The data collected indicated that half of respondents were aged between 31
and 40 years. As expected, the oldest group of those close to the retirement age was
rather few in number, less than 5%.
Furthermore, the sample data showed that the three occupations were nearly uni-
formly distributed. This suggests that all the occupations had access to the usage of
information in their daily operations.
More than one-third of the respondents were diploma holders (34%). This group was
followed degree holders, who represented approximately one-sixth (17.9%). Holders of
masters degrees and those who left secondary school amounted to 9.4 and 6.6%, respect-
ively. On the other hand, PhD holders had a relatively higher representation at 12.3%,
which was well above the operational workforce holding only certificates and diplomas.

Information systems usage

The respondents were also asked to estimate the hours spent using information sys-
tems (Table 2). Nearly two-thirds of the respondents reported spending at least 6 h per
Mlimbila and Mbamba Journal of Shipping and Trade (2018) 3:10 Page 12 of 20

Table 1 Respondents’ profile

Frequency Percent
Sex
Male 68 64.2
Female 32 30.2
Age group
18–30 years 18 17.0
31–40 years 55 51.9
41–55 years 22 20.8
Above 55 years 5 4.7
Occupation
Importer/ Exporters/Transporters 26 24.5
Clearing agent/Port Terminal Operators 29 27.3
ICT officers/Information development Officers 29 27.3
Ordinary employees 16 15.1
Education level
Secondary level/Certificates 22 20.8
Diploma 36 34.0
Degree 19 17.9
Masters 10 9.4
PhD 13 12.3
Source: Data Analysis

day. A considerable number of the respondents of slightly above one-fifth reported

accessing and using information systems 8 or more hours per day. On average, infor-
mation systems usage on a daily basis was common among the port employees.
The majority of the respondents (83%) spent 5 days or more using information sys-
tems (Table 3). This result means that they commonly use information systems
throughout the working days in a week. Thus, high logistics performance is likely to be
attained in the operations of the port.
The data in Table 4 indicate that three-quarters of the respondents reported
that their time to process the working data was less than 3 min. More than
3 min of processing time was reported by a few. This usage could directly lead to
on-time delivery of goods and services, in addition to reducing trucking and
shipping costs.
The use of information systems is slightly equally distributed in a number of areas of
the port’s logistics operations (Table 5). Most likely, this distribution use of the systems
depends on working section and department to which the respondent belongs. How-
ever, it appears the respondents trucking cargos use information systems more than
other respondents responsible for other logistical operations at 29%.

Reliability analysis
Before proceeding with the canonical correlation analysis to determine the extent to
which the items in the questionnaire relate to each other, an overall index of the repeat-
ability or the internal consistency of the scale as a whole was computed to identify
Mlimbila and Mbamba Journal of Shipping and Trade (2018) 3:10 Page 13 of 20

Table 2 Hours Spent on Using Information Systems in Performing Duties

Frequency Percent
0–1 h per day 10 10.0
2–3 h per day 20 20.0
4–5 h per day 7 7.0
6–7 h per day 42 42.0
8 h and above per day 21 21.0
Total 100 100.0
Source: Data Analysis

problem items that should be excluded from the scale. Based on the average
inter-item correlation, alpha (Cronbach’s) was used as a model to determine in-
ternal consistency. There were four sets of data whose internal consistence was de-
termined. The data in Table 6 indicate that the computed Cronbach’s alpha
coefficients were all acceptable, an indication of good internal consistency of the
items in the scale (George and Mallery 2003).

Canonical correlation analytical results

A canonical correlation analysis was conducted using the information systems usage
variable as predictor on the four logistics performance variables as criterion variables to
evaluate the multivariate shared relationship between the two variable sets. The full ca-
nonical model was evaluated for statistical significance. The approach was based on
Roy’s greatest root (Table 7). The most common method used is Wilks’ lambda (λ), as
it tends to have the most general applicability (Sherry and Henson 2005). In this case,
the full model was significant, with a Wilks’ λ of 0.264, F(4, 95) = 66.364, and p < .001.
An overall effect for the full model was computed. Wilks’ λ has a useful property that
informs about this issue because it represents something of an inverse effect size or the
amount of variance not shared between the variable sets. Therefore, by taking 1 – λ,
one can find the proportion of variance shared between the variable sets across all the
functions. This effect statistic was interpreted in a way similar to the multiple R2 in re-
gression. In this case, R2 is 0.736, which indicates high explanatory power of the model.
Each canonical function must be evaluated to determine the function that explains
much of the relationship between the variable sets (Table 8). Each function may not
contribute much to the total solution; however, the cumulative total solution may be
significant and perhaps noteworthy. In this case, the first canonical function was

Table 3 Days Spent per Week Using the Information System in Performing Duties
Frequency Percent
1 day per week 1 1.0
2 days per week 2 2.0
3 days per week 7 7.0
4 days per week 7 7.0
5 days and above per week 83 83.0
Total 100 100.0
Source: Data Analysis
Mlimbila and Mbamba Journal of Shipping and Trade (2018) 3:10 Page 14 of 20

Table 4 Time Taken to Process the Working Data

Frequency Percent
0–1 min 21 21.0
2–3 min 56 56.0
4–6 min 16 16.0
7–10 min 7 7.0
Total 100 100.0
Source: Data Analysis

interpreted as it explains 73.6% of the variance within the functions (Table 8). This re-
sult means that this relationship was largely captured by the first function in the canon-
ical model. Therefore, there was a noteworthy relationship between our variables’ sets
from the evidence of significance and effect sizes.
An analysis to test how well the data fit the created model was also conducted.
Table 9 provides these figures. The data fit well with the model created (53% to 73%).
The results in Table 10 indicate that coefficients for the function indicate that three
criterion variables (on-time delivery, trucking and shipping costs, and organisational
capability) contributed to the model significantly. On the other hand, trade volume
contributed less to the model. This result was supported mainly by the squared struc-
ture coefficients, which indicated the amount of variance the variable observed can
contribute to the synthetic criterion variable. All of these variables’ structure coeffi-
cients had the same positive sign, indicating that they were all positively related. The
other side of the equation in Function 1 involves the predictor variable. The results in
Table 10 inform us that organisational capability, as a proxy for information usage, con-
tributed to the predictor set of variables. The predictor variable was positively related
to the criterion variables. These results suggest the expected relationship between the
information usage and logistics performance.
Table 11 summarises the results of the data analysis.

Conclusions and implications

The study investigated the role of information systems usage in enhancing port logistics
performance in Tanzania using the case of the Dar es Salaam port. The study employed
descriptive analysis to capture information about the sample characteristics and the
pattern of the information systems usage at the Dar es Salaam port. Canonical correl-
ation analysis was used to test the hypotheses regarding the relationship between the
logistics performance of the port and information systems usage.

Table 5 Reasons for Information Systems Usage

Frequency Percent
Organization planning 22 22.0
Billing of port services 15 15.0
Trucking cargos 29 29.0
Cargo reconciliation 20 20.0
Bill payment 14 14.0
Total 100 100.0
Source: Data Analysis
Mlimbila and Mbamba Journal of Shipping and Trade (2018) 3:10 Page 15 of 20

Table 6 Reliability Statistics Results

Data Sets Cronbach’s Cronbach’s Alpha Based on Standardized N of
Alpha Items Items
Decreased shipping and trucking 0.725 0.744 6
costs
Timely delivery of goods and 0.775 0.784 4
services
Trade volume 0.730 0.744 6
Organizational Capability 0.713 0.728 6
Source: Data Analysis

Before proceeding with the canonical correlation analysis, the study determined the
extent to which the items in the questionnaire were related to each other. In this re-
gard, an overall index of the repeatability or internal consistency of the scale as a whole
was computed to identify problem items that should be excluded from the scale. The
computed Cronbach’s Alpha coefficients were all acceptable, an indication of the good
internal consistency of the items on the scale.
A canonical correlation analysis was conducted using one information systems usage
variable as predictor of the four logistics performance variables. The full canonical
model was evaluated for statistical significance with the prepared multivariate sets. Four
methods were used to compute the significance of the model, yielding four sets of
statistics.
A dimension reduction analysis was conducted to test the hierarchal arrangement of
the functions for statistical significance. Each canonical function was evaluated to de-
termine the function that explains much of the relationship between the variable sets.
A noteworthy relationship was found between variable sets based on the evidence of
statistical significance and effect sizes.

Conclusion obtained from findings about the key research objectives

Influence of information systems usage on decreased shipping and trucking costs
The first objective of the study was to determine whether information system usage
contributes to a reduction in shipping and trucking costs pertaining to logistics per-
formance at the Dar es Salaam port. The analysis of the findings shows that informa-
tion systems usage at the port greatly accelerates reduction in shipping and trucking
costs. This relationship is justified, as the research results revealed a strong relationship
among the three variables. These findings support Christopher’s (2005) assertion that
the collaboration of members of the supply chain through Internet tools can enhance
the logistics performance. Hence, information systems resource management has

Table 7 Statistical Significance Tests for the Full Canonical Correlation Analysis Model
Test Name Value Exact Hypoth. DF Error DF Sig. of F
Pillai’s 0.736 66.364 4.00 95.00 0.000
Hotelling’s 2.794 66.364 4.00 95.00 0.000
Wilk’s 0.264 66.364 4.00 95.00 0.000
Roy’s 0.736
Multivariate Tests of Significance (S = 1, M = 1, N = 46 1/2)
Source: Data Analysis
Mlimbila and Mbamba Journal of Shipping and Trade (2018) 3:10 Page 16 of 20

Table 8 Eigenvalues and Canonical Correlations

Root No. 1 Eigenvalue Pct. Cum. Pct Canon Cor. Sq. Cor.
1 2.794 100.000 100.000 .858 .736
Source: Data Analysis

repercussions for the performance of the entire supply chain since its nature of func-
tionality determines the management cost.

Influence of information system usage on timely delivery of goods and services

The second objective of the study focused on establishing whether information systems
usage influence on-time delivery of goods and services on logistics at the Dar es Salaam
port. The findings of the study reveal that two variables have a greater relationship,
hence signifying that information systems usage highly influences on-time delivery of
goods and services. Furthermore, the findings of the study concur with what was un-
veiled in the study by Kia et al. (2000), which demonstrated that improved information
technology opens wide options for container terminal operators to operate the attend-
ant information systems by enabling the port to provide the service on a timely basis
and accurately. Therefore, it can be asserted that the efficiency of the port in delivering
the services is connected with the technology available.

Influence of information system usage on increased trade volume on logistics

The third objective of the study focused on examining whether information systems
usage contributes to increased trade volume on logistics performance at the Dar es Sa-
laam port. The analysis of the findings indicates that information systems usage moder-
ately influences trade volume since the effect registered was far lower that the results
for other variables. Kia et al. (2000) showed that information systems are becoming in-
creasingly accurate in transferring and processing large volumes of data involved in
international transportation firms and port organisations. However, the findings of this
study indicate that information systems usage moderately increase its trade volume. In
fact, the results suggest that the trade volume increase is linked not only to one factor
but also to other factors in the general chain, such as the trade policy of the country
and many others.

Influence of information system usage on increased Organisational capability

The fourth and final objective of the study aimed to ascertain whether information sys-
tems usage contributes to increased organisational capability in terms of logistics per-
formance at the port of Dar es Salaam. The findings reveal that information systems

Table 9 Strength of the Models Created

Variable Sq. Mul. R Adj. R-sq. Hypoth. MS Error MS F Sig. of F
Decreased shipping and trucking costs (C) 0.723 0.721 36.260 0.142 256.257 0.000
Timely delivery of goods and services (TD) 0.555 0.551 50.534 0.413 122.383 0.000
Trade volume (TP) 0.526 0.521 25.271 0.233 108.571 0.000
Organizational Capability (OC) 0.533 0.528 25.886 0.232 111.671 0.000
Source: Data Analysis
Mlimbila and Mbamba Journal of Shipping and Trade (2018) 3:10 Page 17 of 20

Table 10 Canonical Solution for Information Systems Usage on Logistics Performance

Covariate Variable B Beta Std. Err. t-value Sig. of t Lower Upper
Dependent variable: Decreased shipping and trucking costs (C)
Information Systems Usage 1.196 0.851 0.075 16.008 0.000 1.047 1.344
Dependent variable: Timely delivery of goods and services (TD)
Information Systems Usage 1.412 0.745 0.128 11.063 0.000 1.158 1.665
Dependent variable: Trade volume (TP)
Information Systems Usage 0.998 0.725 0.096 10.420 0.000 0.808 1.188
Dependent variable: Organizational Capability (OC)
Information Systems Usage 1.010 0.730 0.096 10.567 0.000 0.821 1.200
Source: Data Analysis

usage as a predictor contributes a great deal to enhancing organisational capability. Ac-

cording to Daud-Norzaidi et al. (2007), information systems usage determines the level
of performance among the workers. The findings indicate that the technology applied
fits the organisation’s needs, as the task-technology fit model works on the assumption
that an information system is more likely to have a positive impact on individual per-
formance and usability when the capabilities of the system match the tasks that the
user must undertake (Goodhue and Thomson 1995).

Conclusion about the effect of information systems usage on the performance of ports
Over the past decades, many information system solutions for ports have been devel-
oped to boost their efficiency. Although this has the case for a long period, logistics
performance in Tanzania has continued posing a large challenge that induced the man-
agement to adopt the new governance (adoption of modern information technology).
Therefore, this study opted to examine the role of information systems in logistics per-
formance at the port of Dar es Salaam. Based on the findings, the study affirms that
adoption of information systems can enhance on-time delivery of services and goods,
reduce trucking and shipping costs, and increase organisational capability. On the other
hand, the study found limited correlation between information systems usage and in-
creased trade volume, which implies that trade volume is a variable that needs an inte-
gration of many other factors instead of relying on information systems usage alone.

Implications for theory

The research findings complement the technology acceptance model, since on-time de-
livery can be attained from building the capacity of information systems usage of port
workers. The reduction registered in trucking and shipping costs can be guided by the

Table 11 Summary of Data Analysis

Relationship between Information Systems Usage and Statistical support Strength of support
Decreasing shipping and trucking costs on logistics Supported Very Strong (almost three quarters)
On time delivery of goods and service Supported Strong (almost 50%)
Increasing trade volume on logistics Supported Strong (almost 50%)
Increasing organization capabilities on logistics Supported Strong (almost 50%)
Source: Data Analysis
Mlimbila and Mbamba Journal of Shipping and Trade (2018) 3:10 Page 18 of 20

actual utilisation of the information system facilities. The outcomes of information sys-
tems usage on port logistics performance can be realised through the usefulness and
user-friendliness of the system. After all, the technology acceptance model is based on
the easy application and the inherent cost-efficiency of the technology.
The task-technology fit theory, on the other hand, insists on individual’s performance
matching with the task he/she performs. This theory is liable to have a positive impact
on individual performance and usability particularly when the capabilities of informa-
tion systems match the tasks that the user must perform. Features are used to measure
task-technology fit, including quality, ability to use, system reliability, profitability of
the technology regarding the cost and time required for delivering service. In this re-
gard, the research findings indicate that reliable information coupled with a proper
quality system and capable users can help achieve strong on-time delivery. A reduction
in trucking and shipping costs can also be achieved through proper utilisation of tech-
nology in terms of the cost and time require for service delivery.

Implications for policy and practice

The work has shown that information systems usage does influence performance. As
such, it is important for policy-makers and practitioners to encourage information sys-
tems usage in a bid to improve performance.
There are a number of empirical implications from this study regarding the in-
formation systems usage in port management. The study has demonstrated that in-
formation systems usage has positive effects on the performance of ports. Thus,
the management of ports must work hard to implement information systems and
motivate employees to use these systems. Such systems can influence the perform-
ance of ports positively and improve efficiency. In fact, the ports that adopt and
use information systems have greater prospects of decreasing shipping and trucking
costs than those not using such systems. Other benefits include timely delivery of
goods and services, perceived increased trade volume, and increased organisational
logistics capability.
In addition, it is important for regulatory bodies to influence the adoption and appli-
cation of such information systems. Because the study suggests more usage translates
into better performance, it is important to integrate various systems that will help yield
even more usage. In fact, well-interlinked developed information systems, for example,
with banks, revenue authorities and others, will increase the information systems’ usage
and hence further enhance performance.

Limitations of the study and implications for further studies

This study targeted four independent variables (on-time delivery, trade volume, truck-
ing and shipping costs, and organisational capability) to explain their relationship with
information systems usage. Of these four variables, information systems usage was
found to have a minimal role in increasing the trade volume performance; therefore,
other studies must be performed to determine the factors that affect the increase in
trade volume at the port.
This study has showed that higher usage of logistic information systems implies bet-
ter port logistics performance measured in terms of the four variables only (reduction
Mlimbila and Mbamba Journal of Shipping and Trade (2018) 3:10 Page 19 of 20

of shipping and trucking costs, improving on-time delivery of goods and services, in-
creasing trade volume, and enhancing organisational logistics capability). The assump-
tion is that the more time an organisation spends on information systems, the more it
will be able to increase the degree of adoption and hence port performance. This study
measured usage in terms of port dependence on information systems for day-to-day
operations.

Additional file

Additional file 1: Data that were used for analysis. (SAV 13 kb)

Acknowledgements
We have no further acknowledgements to make.

Funding
The project was part of dissertation submitted to the University of Dar es Salaam by James Mlimbila for award of
Master of Science in International Transport and Logistics of the University of Dar es Salaam, Tanzania.

Availability of data and materials

Data supporting this document is appended to the submission as Additional file 1.

Authors’ contributions
All authors participated in background research, study design,, and writing of this paper. All authors read and
approved the final manuscript.

Competing interests
The authors declare that they have no competing interests.

Publisher’s Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Received: 6 April 2018 Accepted: 17 September 2018

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