Cold Chain Logistics Projects and Performance of Horticulture Export Companies in Rwanda: A Case of Horticulture Exporters Association of Rwanda (HEAR)

Abstract

Globally, the top three markets for horticulture imports are Europe, the US, and the UAE. The general objective of this study aims to assess the effects of cold chain logistics projects on performance of horticulture exports companies in Rwanda: a case study of Horticulture Exporters association of Rwanda. The specific objectives of this study aim: to assess the effects associated with costs incurred in cold chain logistics on performance of horticulture exports companies in Rwanda, to evaluate the contributions of technology used in cold chain logistics on performance of horticulture exports companies in Rwanda and to determine the effects of geographic location of cold chain stores on performance of horticulture exports companies in Rwanda. Research focused on system theory and resource-based theory. By combining quantitative and qualitative analytic techniques, the researchers used a correlational approach to look for patterns in the interactions between the study's components. The research was based on responses from 92 out of 120 respondents from Rwanda’s horticulture export company. Statistical sampling and other methods were part of the "mixed method" approach utilized in the study. Stratified and random sampling was used to pick the exporters, whilst convenient and purposive sampling were used to select the participants from the cold chain logistics management group. Using both personal and secondary sources, the research aimed to determine the impact of cold chain logistics on the growth of Rwandan horticultural export businesses. For the main data set, which covered the years 2021–2023, researchers utilized closed-ended questions to survey participants. For the secondary data set, they combed through financial records and relevant documents from cold chain facilities. The data was analyzed using version 24 of the Statistical Package for the Social Sciences, a widely used statistical tool in the field of social science. Descriptive data were presented in tables displaying percentages and frequencies. Additionally, regression analysis was conducted to delve deeper into the relationship between the study variables. The findings suggest that there are significant associations between certain factors and performance. Firstly, the cost associated with cold trucks and cold rooms demonstrated a strong positive relationship with performance (β = 0.427, p <0.05). This implies that higher expenditures in maintaining cold trucks and rooms tend to correspond with better performance among horticulture exports companies. Secondly, technology used in cold chain logistics also exhibited a positive relationship with performance, although the effect size was smaller and the p-value slightly higher (β = 0.395, p<0.05). This indicates that employing advanced technology in managing the cold chain logistics process may contribute positively to the performance of these companies. Finally, the geographic location of cold chain stores displayed a significant positive relationship with performance (β = 0.879, p<0.05).  The results show that horticultural export companies may boost their performance and profits by investing in cold chain logistics, refrigeration, and holding facilities. If Rwanda wants to make its horticulture exports more competitive, HEAR should weigh the pros and cons of various cold truck and cold room solutions before making a final decision.