Road Transport Efficiency and Organizational Performance: Does Traffic Infrastructure Management Matter?

Abstract

The objective of this study is to assess the relationships between road transport efficiency and organizational performance. In addition, the investigation explored the intermediary function of traffic infrastructure management in the relationship between road transport efficiency and organizational performance. A study model was built, drawing on a resource-based approach and stakeholder theories, to investigate the interactions between the constructs. The data was collected from a sample of 30 logistics enterprises located in Ghana. The research model underwent analysis utilizing the partial least squares structural equation modeling technique. The results of the study indicate that there is a strong and statistically significant relationship between road transport efficiency and organizational performance. Once more, the analysis has demonstrated a favorable impact of traffic infrastructure management on the performance of organizations. Furthermore, the management of transportation infrastructure has shown a noteworthy and substantial role in mediating the impact on organizational performance.

Keywords

congestion pricing maintenance management multimodal transportation performance management policy and organization public transportation

In the contemporary business landscape, the efficient management of road transport plays a pivotal role in determining the overall organizational performance (OP) of enterprises. The transportation sector, specifically road transport, plays a crucial role in economies by enabling the efficient movement of goods, services, and individuals. The relationship between road transport efficiency (RTE) and OP becomes a crucial area of research as organizations aim to improve their supply chains and overall effectiveness. The transport sector plays a significant role in the overall development of a nation’s economy. Road transport is the primary mode of transportation, linking remote areas with the rest of a country ( 1 ).

Road transport has a dominant role in meeting the transport requirements of consumers and businesses on a global scale. Van Raemdonck and Macharis ( 2 ) assert that the presence of roads plays a crucial role in facilitating the transportation process and enhancing the overall efficiency of logistical operations. It holds significant importance in fostering economic growth by facilitating the efficient mobility of individuals and commodities across various geographical areas and nations ( 3 ). The sector is an integral component of modern economies and assumes a pivotal function in facilitating the global mobility of individuals and goods ( 4 ). It is characterized by its versatility and cost-effectiveness, offering significant advantages such as enhanced accessibility, door-to-door convenience, and the ability to reach remote destinations ( 5 ).

However, the issue of guaranteeing efficiency in road transport has become increasingly important because of the growing demand for transit and increasing concerns about environmental sustainability. The importance of efficiency has always been a crucial factor in the decision-making processes of both public and private transport operators, and its significance has recently increased even further ( 6 ). The efficiency of road transport, being a linchpin in this process, directly affects the speed and reliability of goods movement. RTE refers to the effective functioning and optimization of the processes and mechanisms involved in the movement of goods, passengers, or cargo via road networks. The term refers to a variety of elements and methods that are intended to guarantee a smooth and cost-effective transportation experience ( 7 ).

Traffic congestion and inefficient infrastructure lead to delays, which increase transportation costs and affect the entire supply chain. This, in turn, affects inventory carrying costs and order fulfillment expenses ( 8 ). It is crucial for organizations competing in a cost-sensitive market to comprehend the financial consequences of inefficiencies in road transport. During a time when customers have higher expectations, it is crucial to provide deliveries that are both punctual and dependable to ensure customer satisfaction ( 9 ). Optimal road transportation, facilitated by effectively maintained transport infrastructure, guarantees timely delivery, resulting in increased customer loyalty and market competitiveness ( 1 ). The relationship between the efficiency of road transport and the performance of an organization is complex, involving multiple factors including cost-effectiveness, timely deliveries, and customer satisfaction. Nevertheless, an essential yet frequently disregarded element of this association is the impact of traffic infrastructure management (TIM). The physical foundation of transportation systems is formed by traffic infrastructure, which includes roads, highways, bridges, and associated facilities. Efficiently managing and maintaining this infrastructure not only guarantees uninterrupted traffic flow but also plays a crucial role in enhancing the effectiveness of road transport operations.

In numerous developed nations, there has been a notable rise in the recognition of traffic infrastructure as a vital facilitator of economic growth and a fundamental component of economic development initiatives ( 10 , 11 ). In light of the capital-intensive characteristics of traffic infrastructure and the diminishing availability of resources for capital-intensive endeavors, it is crucial to comprehend the impact of investment in this infrastructure on the economic activity of a developing nation ( 12 , 13 ). According to Engström ( 14 ) factors such as the growing number of vehicles on the roads and the age of the roads are challenges that highlight the significance of increasing the resources that are spent on road maintenance around the world. He emphasized that building a significant asphalt road accounts for only a small portion (23%) of the overall costs of the initial investment. In contrast, when it comes to a rural, unpaved pathway, this ratio undergoes a doubling in magnitude. This demonstrates a distinct disparity between the initial investment in capital expenditure and the overall costs incurred over the entire lifespan of the asset. It shows that although the initial construction expenses may appear relatively insignificant, the broader expenses throughout the asset’s lifespan are significantly higher. To mitigate the occurrence of road accidents, it is imperative to uphold the proper maintenance of traffic infrastructure. Factors such as severe weather conditions, inadequate infrastructure, and insufficient maintenance can potentially undermine the reliability of transportation systems for both passengers and goods. The decline in road reliability, effectiveness, and efficiency has been exacerbated by the impacts of climate change, accidents, and vehicle breakdowns, therefore exacerbating these challenges. The escalation of traffic volumes in urban areas and major cities in Ghana leads to road congestion, so affecting the efficiency of road transport and the overall operational efficacy of logistics companies. Through a comparative analysis of the disparities in the present condition of traffic infrastructure capacity, traffic volume, road design (including dual carriageways or single lanes), and the designated functions of different roads, it becomes feasible to assess the efficacy of the road system.

Recent research emphasizes the diverse influence of traffic infrastructure on the performance of organizations. An optimized and properly managed traffic infrastructure decreases travel durations, reduces transportation expenses, and mitigates interruptions in the logistics process, consequently improving overall operational effectiveness ( 15 ). Insufficient traffic infrastructure can result in congestion, delays, and higher operational expenses, thereby diminishing an organization’s competitiveness in the market ( 16 ). Moreover, in the context of sustainability and environmental concerns, an optimized transport infrastructure contributes to reduced fuel consumption and emissions, aligning with the growing emphasis on green logistics and corporate social responsibility ( 17 ). Recognizing the strategic importance of TIM, this article seeks to delve deeper into the intricate relationship among RTE, OP, and the role of effective TIM. This article seeks to offer a thorough comprehension of how investments in traffic infrastructure can be utilized to improve RTE and, as a result, OP.

Therefore, the study seeks to (i) examine the effect of RTE on OP; (ii) examine the effect of transport infrastructure management on OP; and (iii) determine the relationship among RTE, transport infrastructure management, and OP. Although several studies have been conducted on RTE in Europe and some other parts of Africa, there are limited studies in Ghana to investigate the impact of RTE on OP using TIM as a mediator.

Relevant Literature and Conceptual Model Development

Concept of Road Transport Efficiency

RTE, a crucial factor in the literature, encompasses more than just the process of transporting goods and people. It represents the capacity of the road transport system to accomplish its goals in the most efficient and resource-optimized way. These factors encompass the evaluation of travel durations, usage of fuel, and the overall efficiency of operations ( 8 ). Optimizing road transportation systems results in decreased wait times, lowered expenses, and improved overall efficiency. Within the realm of organizations, there is a strong emphasis on enhancing RTE. This involves the pursuit of refining procedures, optimizing routes, and harnessing technology to enhance the overall efficacy of transportation operations ( 15 ). This variable acknowledges the complex equilibrium between prompt deliveries and cost efficiency, underscoring the importance for organizations to manage these factors to achieve long-term success.

The effectiveness of the road transport system can be assessed using various measures, including trip time, speed, fuel consumption, pollution, and safety. Numerous academic studies have demonstrated that inadequate management of traffic infrastructure can lead to the occurrence of congestion, delays, and extended journey durations. Illustrative instances encompass inadequate management of traffic flow and below-average road repair. The efficiency of road transport networks is negatively affected by increased fuel consumption, pollution, and financial burdens on both businesses and consumers. Conversely, the enhancement and administration of road networks can have a substantial impact on the efficiency of the land transportation system.

For example, a study conducted by Jun et al. ( 18 ) investigated the efficacy of road transportation in South Korea and found a significant association between the quality of road infrastructure and the efficiency of the transportation system. The research findings indicate that implementing road sign upgrades and conducting regular road maintenance has the potential to significantly reduce both travel time and fuel consumption. In a similar vein, a study conducted by Loo and Siiba ( 19 ) examined the impact of road infrastructure investments on the efficiency of transport in China. Based on the findings of the analysis, enhancements in road infrastructure and the establishment of additional motorways have yielded substantial gains in the efficacy of transport.

Contemporary transport systems heavily depend on the effectiveness of road transit to facilitate the movement of individuals and goods in a cost-effective and ecologically sustainable manner. The optimization of efficiency is significantly affected by the development of infrastructure, advancements in vehicle technology, effective management of logistics, and the establishment of regulatory frameworks. Collaboration among governments, corporations, and society holds the potential to foster the development of a road transport system that exhibits enhanced effectiveness, safety, and environmental sustainability. This can be achieved through strategic investments in pertinent domains and the promotion of collaborative efforts.

Transport Infrastructure Management

The management of traffic infrastructure is essential for determining the effectiveness of OP and road transportation. Effective TIM requires the implementation of many activities, such as the planning, development, construction, maintenance, and operation of road networks, traffic signals, and other traffic management systems. Numerous studies have provided evidence of the significant impact that proper management of traffic infrastructure may have on enhancing both OP and the efficiency of road transportation.

An investigation conducted by Zhu et al. ( 20 ) examined the impact of traffic management strategies on the efficacy of road transport inside China. The study suggests that the implementation of effective traffic management strategies, such as the utilization of real-time traffic information and intelligent traffic management systems, can significantly reduce travel time, fuel consumption, and emissions. Gupta et al. ( 21 ) conducted a study to investigate the influence of TIM on the operational efficiency of trucking firms in India. The study demonstrates that the implementation of effective planning and management strategies for the road network, as well as the adoption of sound TIM practices, have been found to have a substantial positive impact on the productivity levels of trucking enterprises.

The efficacy of the road transport system is significantly affected by regulatory frameworks and policies. Governments can enact congestion pricing schemes as a means to dissuade the use of private automobiles during periods of high demand, promote the utilization of public transit, and incentivize the adoption of eco-friendly vehicles. The efficacy and long-term viability of the road transport system can be substantially influenced by legislation on vehicle weight, dimension, and emissions thresholds.

Stakeholders must collaborate and establish strategic alliances to effectively enhance the efficacy of the road transport system. To facilitate the dissemination of optimal methodologies, foster the exchange of specialized knowledge, and collectively tackle the challenges confronting the sector, it is imperative to establish a collaborative framework involving governmental entities, transportation operators, logistics providers, technology innovators, and academic institutions. Public–private partnerships (PPPs) play a crucial role in facilitating research and development, financing infrastructure initiatives, and implementing innovative concepts.

Organizational Performance

OP refers to the effectiveness and success of an organization in achieving its goals and objectives. It encompasses various dimensions, including financial metrics, operational efficiency, customer satisfaction, and market competitiveness. OP pertains to the extent to which a corporation effectively harnesses the resources associated with its primary activities to generate economic value within a specified timeframe. According to Stevens ( 22 ), performance may be defined as the result of the efforts made by a person or a group in a certain activity that influence the outcomes. Performance, as defined by Widjaja et al. ( 23 ), pertains to the precise outcomes achieved by an organization in comparison to the anticipated outputs. The indicator is thereafter evaluated against a predetermined benchmark representing the average performance of comparable organizations within the corresponding industry. The monetary value of an organization’s performance refers to the overall impact of its policies and operations. The firm’s returns can serve as indicators of outcomes, representing a quantified projection of the potential profitability a company can generate from its assets ( 24 ). The assessment of OP within the transportation business encompasses various measures, such as profitability, customer happiness, and workforce productivity.

Profitability, customer satisfaction, and employee productivity are among the key indicators that can be employed to evaluate the performance of an organization operating in the transportation industry. Numerous studies have provided evidence of a positive association between the efficacy of organizations and the efficiency of road transport. One example is the potential for enhanced cost savings, heightened customer happiness, and improved employee productivity resulting from the improvement of RTE. These outcomes collectively contribute to the overall optimization of organizational functioning. Von Haldenwang ( 25 ) conducted a study to investigate the impact of transport efficiency on the financial performance of logistics enterprises in Germany. Based on the findings of the survey, it was seen that enterprises that exhibited higher levels of transport efficiency were able to generate greater financial returns. In a study conducted by Gao and Meng ( 26 ), an examination was undertaken to explore the relationship between customer satisfaction in China and the efficacy of road transport. The study found that there was a positive correlation between enhanced RTE and higher levels of customer satisfaction.

Conceptual Framework

Figure 1 presents the conceptual framework that was developed to shed light on the dependent, independent, and mediating variables involved in the study. The independent factors can be used to make predictions about the variation in the dependent variable ( 27 ). As a direct consequence, the value of the dependent variable is sensitive to any shifts in the value of the independent variable. In addition, the mediating variable can change the strength of the association between independent and dependent variables and the direction in which the association points. The independent variable of this study is RTE, whereas the dependent and mediating variables are OP and TIM, respectively.

Figure 1.

Conceptual framework.

Empirical Literature and Hypothesis Development

Road Transport Efficiency and Organizational Performance

The study conducted by Mensah and Mensah ( 28 ) revealed that enhancements in RTE had a positive impact on the operational performance of businesses, especially in sectors that heavily depend on punctual deliveries. The study highlighted that organizations that have efficient road transport operations witnessed a decrease in expenses and an improvement in customer satisfaction, which played a crucial role in their overall success in the Ghanaian setting. Furthermore, Yan et al. ( 29 ) discovered a clear link between RTE and financial performance in the manufacturing industry. This emphasizes the economic significance of efficient transportation systems in improving the financial outcomes of organizations in Ghana.

Furthermore, Zhu et al. ( 30 ) conducted a study to investigate the impact of transportation efficiency on the performance of supply chains. The authors assert that improved efficiency in road transport led to decreased lead times and costs, therefore positively affecting OP. Similarly, the study conducted by Chen et al. ( 31 ) explored the relationship between firm competitiveness and the efficiency of road transport. The researchers observed a significant association between the success of organizations and the efficiency of road transport. This finding demonstrates that enterprises possessing more efficient transportation networks experienced higher levels of profitability and market dominance. The study conducted by Wu et al. ( 32 ) also examined the relationship between efficient transportation and consumer happiness within the e-commerce industry. The researchers found that improved RTE, leading to faster and more reliable deliveries, had a positive impact on customer satisfaction and ultimately enhanced organizational success. It is imperative to acknowledge that there is a lack of consistent evidence in research with respect to the positive correlation between organizational success and RTE. An investigation conducted by Zou et al. ( 33 ) revealed the possibility of a lasting correlation between transportation efficiency and organizational effectiveness, despite the lack of immediate statistical significance. Therefore, we propose the following hypothesis.

H1: There is a significant positive relationship between RTE and OP.

Traffic Infrastructure Management and Organizational Performance

Studies exploring the impact of TIM on OP reveal a nuanced relationship. In a study by France-Mensah and O’Brien ( 34 ) conducted in Ghana, traffic infrastructure limitations were identified as a significant factor hindering the performance of organizations. Congestion and delays resulting from inadequate traffic infrastructure negatively influenced operational efficiency and increased costs for businesses. Conversely, empirical evidence from developed economies, such as the study by Holguín-Veras et al. ( 35 ) in New York City, demonstrated that effective TIM contributed to improved OP by reducing delivery times and minimizing disruptions. These findings collectively underscore the importance of well-managed traffic infrastructure in positively shaping OP, with context playing a pivotal role in determining the nature of this relationship.

In an examination conducted by Li and Yu ( 36 ), the researchers investigated the correlation between China’s logistics performance and the management of transportation infrastructure. The researchers found that there was a favorable correlation between efficient management of transportation infrastructure and improved OP in the field of logistics. In a manner akin to the aforementioned study, Zhang et al. ( 37 ) investigated the impact of China’s transport infrastructure quality on corporate productivity. The researchers identified a significant association between the management of traffic infrastructure and the success of organizations. Specifically, firms situated in areas with well-developed traffic infrastructure exhibited higher levels of productivity. Chong et al. ( 38 ) conducted a study examining the relationship between traffic infrastructure and consumer happiness within the tourist industry. The researchers observed that the effective maintenance of transport infrastructure has a positive influence on consumer satisfaction, consequently enhancing the overall performance of firms operating within the tourism sector. It is imperative to acknowledge that there exists a lack of consensus in research about the correlation between TIM and enhanced OP. Li et al. ( 39 ) conducted a study that revealed that the operational effectiveness of logistics organizations is negatively affected by traffic congestion. The second hypothesis claimed the following.

H2: There is a significant positive relationship between TIM and OP.

Road Transport Efficiency, Traffic Infrastructure Management, and Organizational Performance

The management of traffic infrastructure and the optimization of road mobility play crucial roles in determining organizational success. Xu et al. ( 40 ) conducted a study to investigate the correlation among the efficacy of logistics, the management of traffic infrastructure, and the efficiency of road transport. The researchers found that the management of traffic infrastructure and the efficiency of road transport had a favorable effect on logistical performance, leading to an improvement in OP. In line with prior research, the study conducted by Li and Yu ( 36 ) centered on examining China’s logistics performance and the impact of TIM on productivity. The researchers found that the efficient administration of transportation infrastructure has a positive influence on the effectiveness of logistical performance, leading to improved OP.

The study conducted by Zhang et al. ( 37 ) examined the role of traffic infrastructure quality in influencing the relationship between RTE and OP. Although the study was not conducted in Ghana, it emphasized the mediating effect of traffic infrastructure quality on this relationship. When considering the situation in Ghana, improving traffic infrastructure could have a significant impact on addressing problems related to inefficient road transportation and, as a result, positively affect organizational results. Subsequent empirical investigations in Ghana should further explore this mediation mechanism, taking into account the distinctive sociodemographic and infrastructural attributes of the region.

Recent empirical studies have focused on the mediation role of TIM in the relationship between RTE and OP. Zhang et al. ( 37 ) conducted a study using a mediation analysis framework and discovered that the influence of RTE on OP was partly mediated by the quality of traffic infrastructure. Optimized traffic infrastructure specifically reduced delays, thereby minimizing the adverse effects of inefficiencies in road transport on overall OP. The mediation effect demonstrates the interconnectedness between the efficiency of road transport and the management of traffic infrastructure. It emphasizes that TIM plays a crucial role in shaping the organizational outcomes of road transport operations. These empirical findings offer valuable insights into the complex interplay among RTE, TIM, and OP.

Chen et al. ( 31 ) conducted a study examining the interrelationships among corporate competitiveness, TIM, and the efficacy of road transport. The researchers made a significant finding indicating that enterprises who own superior transport networks and modern traffic infrastructure exhibit greater profitability and market dominance. The last hypothesis is derived from the necessity of examining the following.

H3: The relationship between RTE and OP is mediated by TIM.

Theoretical Foundation of the Study

Several theoretical frameworks can be used to analyze the problem of evaluating OP, the effectiveness of road transport, and the function of TIM. The resource-based view (RBV) and stakeholder theory are two theoretical frameworks that are particularly pertinent to this topic, and they will be discussed in this section.

Resource-Based View

The RBV is a theoretical framework that underscores the significance of internal resources and capabilities in enabling a corporation to attain a competitive advantage and achieve organizational success. The RBV theory posits that organizations can sustain a competitive edge by possessing unique, valuable, and difficult-to-replicate resources and capabilities. The RBV theory argues that companies possessing unique and significant resources and competencies in the administration of transport infrastructure are likely to exhibit higher levels of efficiency and superior performance compared to companies without such resources. The assertion holds specifically in the context of evaluating RTE and OP. Several research studies conducted in the transportation sector have found that organizations that allocate resources toward managing transportation infrastructure, such as advanced traffic management systems, sophisticated routing and scheduling software, and skilled transportation managers, exhibit superior OP and gain a competitive edge compared to those that do not make such investments. It is important to note that these studies often focus on scenarios where private entities are involved in the ownership and management of public infrastructure. Li et al. ( 39 ) conducted a study that revealed that companies who allocate resources toward the management of transportation infrastructure experience reduced transportation costs, improved delivery results, and heightened customer satisfaction in comparison to those that do not. These findings underscore the potential benefits of private involvement in the management of public infrastructure, particularly in the realm of road transport.

Stakeholder Theory

The stakeholder theory emphasizes the importance of considering the needs and interests of all relevant stakeholders inside a company, encompassing shareholders, customers, suppliers, employees, and the local community. The theory of stakeholders posits that in evaluating the efficacy of road transport and OP, management strategies for transport infrastructure should take into account the interests and expectations of diverse stakeholders, such as shippers, carriers, drivers, and the community.

Multiple studies have demonstrated that the implementation of a stakeholder-oriented strategy in the management of transportation infrastructure can lead to improved OP and sustainability. These studies have utilized stakeholder theory as a framework to examine the relationship between stakeholders and transportation infrastructure management. For example, the study conducted by Tan and Salo ( 41 ) demonstrated that incorporating stakeholder needs into transportation infrastructure management strategies, such as reducing noise pollution and improving road safety, can positively influence public perception of transportation companies and lead to an increased willingness to pay for transportation services.

The RBV and stakeholder theory are two theoretical frameworks that have particular relevance to the examination of RTE and OP, as well as the role of TIM. These frameworks highlight the importance of allocating resources toward the management of transport infrastructure, adapting management strategies to the specific attributes of the transport system, and reconciling the needs and concerns of different stakeholders.

Research Method and Data Collection

The study adopted the quantitative research approach and an explanatory research design because of the nature of the objectives and research questions developed by the researchers. The quantitative approach uses inferential statistics to describe or explain issues understudy ( 42 ). It also allows a study to collect data quantitatively to generate better objective conclusions for the generalization of findings across the targeted population ( 43 ). It is advantageous in producing a good number of responses from a large group and it can also be used with greater confidence. The study was carried out within the scope of logistics firms in Ghana. The population of the study was logistics enterprises from the Ghana Business Directorate (GBD) database. There are 30 logistics firms in the GBD database (2022). As such, the study’s population comprised 30 logistics companies.

Sample Size and Sampling Technique

Using a census sampling technique, information was obtained from every unit to ensure a higher degree of accuracy and reliability of findings. The techniques provide a fair representation of members. The respondents included operations, dispatch drivers, and managers because of their direct involvement in transport-related activities. Thirty logistics firms with a total of 350 employees were contacted. Primary data were gathered through the distribution of questionnaires. The participating firms in the study permitted the researchers to use their staff members. Surveys were distributed to various individuals engaged in the study after obtaining written consent. In the early stages, the questionnaires were tested to make sure that participants understood the demands of the questions in the questionnaires. Some 350 questionnaires were distributed, but after data editing, sorting, coding, and error checking, only 230 (having a return rate of 65.7%) were fully completed and usable.

Measurement

The items measuring RTE were adapted/adopted from Jarboui et al. ( 44 ) on a 5-point Likert scale. TIM was adopted from Adetola and Goulding ( 45 ), whilst the measurement items for OP were adopted from Singh et al. ( 46 ).

Results

This study analyzed the effect of RTE on OP, and the role of TIM matters. The study employed a quantitative approach with an explanatory research design tailored to its objectives, using inferential statistics to elucidate issues. It leveraged this method to gather data from 30 logistics firms in Ghana, selected from the GBD database. Through census sampling, information was gathered from all units, including operations, dispatch drivers, and managers. Questionnaires, tested for clarity, were distributed among 350 employees, yielding 230 fully completed responses, measuring RTE, TIM, and OP on a 5-point Likert scale, drawing from established sources for measurement items.

The underlying constructs were assessed and validated using the reliability and validity test. The idea of validity pertains to the accuracy and comprehensiveness with which items capture the intended concepts, whereas reliability assesses the consistency of items ( 47 ). The study’s validity and reliability were ensured by adhering to the appropriate thresholds and limits for each of the measuring criteria. The loading of the indicator must meet a minimum threshold of 0.7, as stated by Hair et al. ( 48 , 49 ) and as indicated in Figure 2. The model was assessed by examining factor loadings, composite reliability (CR), and average variance extracted (AVE), ensuring that each latent variable had a value greater than 0.50.

Figure 2.

Outer values and R-values.

The results are presented in Table 1. The reliability of the constructs was assessed through the utilization of Cronbach’s alpha (α) and the CR test. According to the research conducted by Hair et al. ( 47 ) and Bagozzi and Yi ( 50 ), the concept of internal consistency pertains to the extent to which a specific measurement approach yields reliable and uniform outcomes. As stated by Hair et al. ( 48 ), it is recommended that both Cronbach’s alpha (α) and CR values should meet or surpass the criterion of 0.7. In the present investigation, it was shown that both the Cronbach’s alpha (α) and CR values of the constructs surpassed the required threshold, indicating a high level of construct reliability (see Table 1). The study employed AVE as a measure to assess the convergent validity. Convergent validity is predicated on the assumption that each item effectively measures the construct it is intended to assess ( 51 ).

Table 1.

Measurement Output of Constructs

Constructs	Factor loading ( $λ)$	Measurement
Items	Factor loading ( $λ)$	Cronbach’s alpha (α)	Composite reliability	AVE
Road transport efficiency (RD)
RTE1	0.640	0.869	0.903	0.582
RTE2	0.703
RTE3	0.840
RTE4	0.886
RTE5	0.895
RTE6	0.875
Traffic infrastructure management (TIM)
TIM1	0.743	0.894	0.920	0.661
TIM2	0.785
TIM3	0.751
TIM4	0.783
TIM5	0.756
TIM6	0.740
Organizational performance (OP)
OP1	0.385	0.872	0.891	0.577
OP2	0.800
OP3	0.835
OP4	0.831
OP5	0.839
OP6	0.797
OP7	0.747

Note: RTE1 = reliability of road transport services; RTE2 = reliability and timeliness; RTE3 = traffic congestion; RTE4 = condition of road surfaces; RTE5 = connectivity of road networks; RTE6 = road maintenance issues; TIM1 = traffic flow management; TMI2 = coordination between different traffic management systems; TMI3 = technological initiatives; TMI4 = responsiveness of traffic management systems; TMI5 = community engagement initiatives; TMI6 = effective monitoring; OP1 = timely delivery; OP2 = customer satisfaction; OP3 = customer loyalty; OP4 = profitability; OP5 = brand recognition; α = Cronbach’s alpha, >0.700; AVE = average variance extracted, $\sum λ^{2} / n$ = A > 0.500; CR = composite reliability, $(\sum {(λ)}^{2} / (\sum {(λ)}^{2} + (\sum a), a = 1 - λ^{2}$ > 0.700.

Factor loadings <0.500 were omitted (therefore, OP1 was omitted).

It is generally recommended that the AVE value be greater than 0.5 to establish acceptable levels of convergent validity. Based on the findings presented in Table 2, the measure of convergent validity can be deemed satisfactory as the AVE exceeded the threshold of 0.500.

Table 2.

Fornell–Larcker Criterion (Discriminant Validity)

	OP	RTE	TIM
OP	0.763	na	na
RTE	0.738	0.813	na
TIM	0.708	0.693	0.760

Note: Diagonal values (bold) are square roots of average variance extracted.

OP = organizational performance; RD = road transport efficiency; TIM = traffic infrastructure management; na = not applicable.

Discriminant Validity

The assessment of discriminant validity was conducted via the Fornell–Larcker criterion. According to Kurfalı et al. ( 52 ), discriminant validity is considered to be established when the square root of the AVE for each construct is more than the inter-factor correlation between the constructs in the model. Alternatively, discriminant validity can also be attained when the square root of the AVE exceeds its correction values. According to the findings displayed in Table 2, it can be observed that the square root of the AVE value (indicated in bold) regularly exceeds the corresponding correlation values. This pattern indicates the presence of discriminant validity, therefore supporting the acceptance of the constructs.

Path Coefficients

The study hypotheses were tested when it was established that the measurement model complies with the partial least squares structural equation modeling (PLSSEM) requirement. The idea of the impact of RTE on OP was considered. The path coefficient (β) was used to assess the direction and strength of the hypotheses, and the significance level was established using t-statistics obtained using 5000 bootstraps, a two-tailed test advised by Sarstedt et al. ( 53 ). According to the goals of the study, the outcomes of the PLSSEM-evaluated hypotheses are presented in Tables 3 and 4.

Table 3.

Path Model Analysis (Direct Path)

Structural path	Original sample (O)	t-Statistics (\|O/STDEV\|)	Decision
RTE - > OP	0.476	5.500	Supported
RTE - > TIM	0.693	21.001	Supported
TIM - > OP	0.378	4.575	Supported

Note: RTE = road transport efficiency; TIM = traffic infrastructure management; OP = organizational performance.

p < 0.05; t-value > 1.99.

Table 4.

Mediating Effect

Total effect RTE-OP		Direct effect RTE-OP
β	p-value	β	p-value	Indirect effect	β	SD	t-Val	p-Val	BI (2.5%: 97.5%)
0.738	0.000	0.378	0.000	RTE-TIM-OP	0.262	0.051	5.100	0.000	0.141;0.351

Note: RTE = road transport efficiency; TIM = traffic infrastructure management; OP = organizational performance; BI = bias-corrected bootstrap interval; SD = standard deviation.

p < 0.01; t-value > 1.99.

Variance accounted for (VAF) 35.5% (partial mediation effect). VAF = 0.262/0.738 × 100.

Discussion

Referencing the first hypothesis, the researchers sought to analyze the effect of RTE on OP. This suggests that the operational effectiveness of organizations is positively correlated with the utilization of efficient road transportation systems. The impact of RTE on OP is reported to be substantial. The reason for this is that the t-statistic value of 5.500 exceeded the critical threshold of 1.96 (with a corresponding beta value of 0.476, p = 0.000, p = 0.5). This implies that the effectiveness of road mobility significantly affects the operational outcomes of organizations. The findings of this study are consistent with the assertion made by Zhu et al. ( 30 ) that transportation efficiency has a favorable impact on supply chain performance. Reduced lead time and improved delivery performance are very advantageous considerations for organizations. According to Wu et al. ( 32 ), RTE is associated with faster, more reliable, and dependable delivery. The researchers assert that organizations can attain improved success in their financial and operational pursuits by prioritizing efficiency in their road transport.

The second hypothesis aimed to examine the impact of TIM on OP. The hypothesis posits that there exists a statistically significant positive correlation between the management of traffic infrastructure and the performance of organizations. The results of the study provide evidence in favor of the proposed theory. The t-statistic value of 21.001 exceeds the critical threshold of 1.96 (β = 0.693, p = 0.000, p < 0.5), therefore indicating statistical significance. The statement suggests that the management of transportation infrastructure has a substantial impact on the functioning of organizations. The influence of TIM on OP has been extensively examined in the research conducted by Li and Yu ( 36 ) and Chong et al. ( 38 ). These studies have demonstrated the major impact of traffic infrastructure on the success of organizations. The research findings indicated a positive correlation between customer satisfaction and the overall operational and financial performance of logistics companies in China.

The third hypothesis posited that the association between RTE and OP is influenced by the mediating factor of TIM. A mediation analysis was conducted to investigate the relationship between RTE and OP, specifically focusing on the potential mediating effect of TIM (β = 0.262, t = 5.100, p = 0.000). The study revealed that road TIM has a significant mediating influence on OP. The variance accounted for (VAF) aids in evaluating the degree to which the mediator variable explains the variance in the dependent variable, beyond the direct effects of the independent variable. The calculation of the VAF was performed using the recommended approach by Sarstedt et al. ( 53 ) to evaluate the magnitude of mediation. The variance accounted for (VAF) is determined by multiplying the indirect effect or overall effect by a factor of 100. According to the findings of Hair et al. ( 48 ), the VAF values can be interpreted as follows: a VAF value greater than 80% suggests full mediation, a VAF value greater than 20% indicates partial mediation, and a VAF value lower than 80% suggests no mediation.

The findings indicate that there is a significant mediating influence between RTE and OP satisfaction through the management of TIM. This is supported by the observed VAF value of 35.5%. This finding provides support for the assertion put forth by Gligor ( 54 ) on the existence of a relationship between the effectiveness of road transport and the management of traffic infrastructure, and its impact on the performance of organizations. The aforementioned findings indicate that the correlation between RTE and TIM exerts a more substantial influence on OP.

Conclusion

This empirical work is concerned with determining the combined effect of RTE and transport infrastructure management on OP. Ultimately, this study examined the crucial correlation between the effectiveness of road transportation and the success of organizations, specifically investigating the influence of TIM within the logistics industry in Ghana. The results emphasize the crucial impact of RTE on the overall performance of organizations in the logistics sector. An effectively organized and productive road transportation system can result in reduced expenses, punctual deliveries, and enhanced customer contentment, thereby strengthening the competitive edge of logistics companies. The study also provided insights into the critical element of TIM, highlighting its significance in determining the effectiveness of road transport systems, which in turn affects OP.

The findings have significant implications for logistics firms operating in Ghana. Understanding the crucial significance of RTE and the influence of TIM can inform organizational strategies to maximize the effectiveness of their logistics operations. Enhanced RTE can be achieved by investing in infrastructure development, implementing advanced technology for traffic management, and fostering collaborations with relevant authorities. Consequently, this could lead to enhanced delivery schedules, decreased operational expenses, and heightened customer contentment, thereby positively affecting the overall efficiency of logistics companies in Ghana.

It is recommended that logistics firms collaborate with relevant government authorities to advocate for and contribute to the improvement of TIM. This collaboration can involve regular consultations to address challenges in the transportation sector, sharing insights on specific logistics requirements, and actively participating in initiatives aimed at upgrading and maintaining road networks. By engaging in such partnerships, logistics firms can play a proactive role in influencing policies that prioritize traffic infrastructure development, leading to improved efficiency in road transport. In addition, logistics firms operating in Ghana should invest in technology and innovation to optimize their internal processes and adapt to evolving transportation landscapes. This includes the implementation of advanced fleet management systems, real-time tracking solutions, and data analytics to monitor and enhance the performance of their logistics operations. Embracing technology not only improves overall efficiency but also facilitates better decision-making, route optimization, and resource allocation.

Although valuable insights were obtained, it is crucial to recognize specific limitations in this study. The study specifically targeted logistics companies in Ghana, and its conclusions may not be directly transferable to other sectors or geographical areas. Moreover, the study did not investigate the specific intricacies of various traffic management strategies, thus allowing for further examination of the most efficient methods for enhancing RTE. Recommendations for future research encompass conducting comprehensive analyses on the effects of targeted traffic management interventions, investigating the contribution of governmental policies in facilitating infrastructure growth, and exploring the impact of external factors, such as weather conditions, on the efficiency of road transport in the logistics sector of Ghana. These research avenues can enhance our understanding of the intricate interplay among RTE, TIM, and OP.

Footnotes

Author Contributions

The authors confirm contribution to the paper as follows: study conception and design: E. Kyeremeh. A. Yamoah, B.A. Mensah; data collection: A. Yamoah; analysis and interpretation of results: E. Kyeremeh. A. Yamoah, B.A. Mensah. All authors reviewed the results and approved the final version of the manuscript.

Declaration of Conflicting Interests

The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

Funding

The author(s) received no financial support for the research, authorship, and/or publication of this article.

ORCID iDs

Evans Kyeremeh

Alfred Yamoah

Data Accessibility Statement

The datasets generated during and analyzed during the current study are available from the corresponding author on reasonable request.

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