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American Journal of  
Geospatial Technology (AJGT)

Unlocking the Influence of  Logistics Activities on Local Community Development in 
Ejura Municipality” Ghana-A Mediator Moderation Role of  Economic Performance

Ernest Kwaku Agyei1*, Ampong Afoakwah Emmanuel2, Godwin Appiah-Kubi3, Elizabeth Serwaa Boateng Koomson1

Volume 3 Issue 1, Year 2024
ISSN: 2833-8006 (Online)

DOI: https://doi.org/10.54536/ajgt.v3i1.3546
https://journals.e-palli.com/home/index.php/ajgt

Article Information ABSTRACT

Received: September 08, 2024 

Accepted: October 02, 2024 

Published: October 05, 2024

This research delves into the impact of  logistics operations on the development of  the 
Ejura-Sekyedumase Municipality in Ghana. With a focus on economic performance as a me-
diating and moderating mechanism, the study employs a quantitative research design to as-
sess the influence of  transportation, warehousing, and distribution on rural areas. Data was 
collected from logistics stakeholders using purposive and convenience sampling methods, 
and analyzed through statistical techniques such as regression and correlation in the SPSS 
software program. In addition to emphasizing the importance of  ethical considerations and 
validation and reliability verification of  research instruments, the results highlight the crucial 
role of  logistics in enhancing both organizational efficiency and economic performance, 
leading to growth within local communities. This study offers valuable strategic insights for 
decision-makers looking to improve performance through optimized logistics management, 
ultimately fostering growth in rural areas.

Keywords
Firm Performance, Logistics 
Efficiency, Logistics Operations, 
Rural Development, Supply 
Chain Management

1 Kumasi Technical University, Ghana
2 Sunyani Technical University, Ghana
3 Sir Padampat Singhania University, Nh 76 Bhatewar, Udaipur, Rajasthan, India
* Corresponding author’s e-mail: Ernestkwaku.Phd2024@Spsu.Ac.In

INTRODUCTION 
The logistics industry is important for global economic 
development, and it boosts the national economy by 
supporting production and trade processes. It also 
manages the acquisition of  materials for production, 
provides support in manufacturing, and ensures that 
finished goods are efficiently delivered to consumers. The 
system comprises several activities such as information 
exchange from producers to consumers regarding 
goods movements between suppliers and customers. 
These encompass all aspects of  transportation, customs 
clearance, warehousing, handling, insurance coverage, 
packing, inventory controlling and customer service 
inventory control, and customer service, hence making 
the logistics sector the major one globally (Sezer & Abasiz, 
2017). In recent times businesses and society at large has 
increased attention on sustainability in logistics. For global 
manufacturers there is growing pressure to integrate 
economic, environmental and social issues into their 
strategies’ procedures’ structures and cultures’ decisions 
making (Sohns et al., 2023). Customers expect firms to 
address their environmental and social impact regarding 
their business activities (Ganesh et al., 2024). This is 
considered as a crucial aspect for compliance purposes 
including in competitive markets by multinational 
corporations (Gao et al., 2023). Managers involved with 
supply chains make vital decisions on supplier selection; 
transport mode choice; network routing; facility location; 
and packaging options among others that significantly 
influence environmental protection or enhancement of  
human welfare (Miklautsch et al., 2022). The link between 

sustainability and supply chain management hinges on 
operational factors that boost profitability while benefiting 
people and the environment (Duong et al., 2022). Supply 
chain competencies thus have an incessantly important 
role in achieving long term sustainability (McDougal 
et al., 2022). For sustainable agricultural practices, 
environmental degradation resulting from intensive 
farming practices, such as land degradation, pollution, and 
soil erosion, among others, can be mentioned here since 
it’s common within the agriculture sector, necessitating 
this issue therefore Nematollahi et al. (2020) say.
Decreasing earnings from agriculture affect jobs and 
lives in rural areas; hence, the need for sustainable agro-
industrial networks (Deconinck et al., 2020; Deconinck et 
al., 2022). In Ghana, cocoa production is highly prioritized 
by the government as a means of  achieving economic 
growth and poverty reduction (Adwoa et al., 2022). The 
economy of  Ghana largely depends on cocoa export 
earnings thus involving a logistics system that helps to 
stabilize its regional economy by creating rural employment 
opportunities (Teye et al., 2023). Poor logistics management 
may cause high costs and inefficiencies such as inadequate 
transportation, poor warehouse management, and lack 
of  inventory control all these can affect the economic 
performance badly (Altekar et al., 2023). These include 
efficient transport and distribution logistics that have been 
shown by Okumu et al. (2022) to enhance operational 
efficiency as well as overall economic performance. 
Economic productivity is diminished when there are issues 
such as product deterioration due to mishandling during 
transportation and warehousing (Ababu et al., 2020). 



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LITERATURE REVIEW
This study examines the relationship between logistics 
management operations and company efficiency in 
terms of  economic performance as a mediator and 
moderator, with particular reference to rural economies. 
Although some research has approached the subject of  
logistics management in general, there is still a pressing 
need to understand how different types of  economic 
performances could influence such outcomes in various 
settings especially rural areas like Ejura Municipality in 
Ghana (Duong, 2022; Liu et al., 2020). Most of  the current 
studies have concentrated on urban contexts thereby 
overlooking peculiar logistic challenges and opportunities 
in less developed regions (Pokhrel et al., 2024; Korir et al., 
2023). Moreover, few investigations differentiate among 
transport warehousing distribution etcetera as well as their 
respective impacts on sustainable development vis-à-vis 
other aspects like income generation or poverty reduction 
potentials within these remote parts (McDougall et al., 
2022; Miklautsch & Woschank, 2022). This review focuses 
on logistics management which refers to the process 
involved in planning, implementing, and controlling 
the effective flow of  goods/services from the point of  
origin through consumption so that they meet customers’ 
requirements promptly (Christopher et al., 2016; Kim et 
al., 2022). It involves material planning, procurement, 
and transportation warehousing distribution which are 
all important for organizational performance and also 
economic growth (Wang et al., 2020). Material requirement 
planning starts with sales strategies forecasting by 
assessing inventory levels monitoring production 
demands ensuring timely delivery planning procurement 
among others (Juhala et al. MRP); Cass MRPII), which 
integrates purchasing decisions with manufacturing 
costs global business environment (Lasrado et al., 2023; 
Kumar et al., 2020) where goods movement is managed to 
enhance time location efficiency. This significantly affects 
economic performance especially in rural areas through 
improved infrastructure for local economic development 
as it reduces costs and enhances accessibility (Fagerberg et 
al., 2023; Korir et al., 2023; Odhiambo2021). The balance 
between cost and efficiency in the delivery of  goods can 
only be achieved by strategic transportation management 
where faster modes are usually associated with better 
economic outcomes (Mohapatra et al., 2023; Korir et al., 
2023). Efficient warehousing logistics, which includes 
storage and distribution of  products helps to optimize 
space utilization, labor saving as well as equipment 
usage thus cutting down on costs incurred through 
operations while at the same time improving supply 
chain performance, especially in remote areas where 
storage capacity greatly influences economic productivity 
(Fagerberg et al., 2020; Fagerberg et al., 2023). These 
warehouses serve as major points along the supply chain 
therefore their efficiency or effectiveness reflects that of  all 
other activities involved in logistic operation hence being 
key drivers for economic development (Buzu et al., 2020; 
Mengesha et al., 2021). It is good practice for inventory 

managers to ensure availability since this is important in 
meeting demand requirements which contribute towards 
satisfying customers’ needs thereby maximizing revenue 
generation potentiality through sales volume attainment. 
Managing stocks, particularly perishable ones comes with 
high expenses thus there arises a need to cut down lead 
times coupled with centralizing locations where these 
goods are stored to improve financial position (Christian 
et al., 2024; Muhammad et al., 2024; Muhammad et al., 
2023). Distribution logistics ensures that products reach 
consumers from producers at the right time cheaply 
thereby opening up new markets increasing income 
levels and fostering consumer loyalty, especially among 
people residing in rural areas such as Ejura Municipality 
(Williams, 2019). Local development can be fostered 
through integration of  supply chain management with 
distribution logistics which also enhances economic 
performance within a given locality (Althaqafi et al., 
2021). Significant improvement in sustainability can often 
be realized during efficient management of  transport 
systems whose main goal should always revolve around 
achieving profitability while minimizing both social and 
environmental impacts on the community thus acting 
as a catalyst for sustainable development (Duong 2022; 
Nematollahi & Tajbakhsh 2020). Wang (2021) stated that 
economic performance indicates how well a firm uses its 
resources to generate income or profit hence it acts as 
a mediator between the efficiency and cost-effectiveness 
of  logistics operations. Transportation being one major 
component within the logistic chain plays a significant role 
in realization such as reducing expenses incurred during 
deliveries, and shortening waiting periods experienced by 
customers whenever they place orders thereby improving 
overall sustainability within organizations (Saidi et 
al., 2020; Xu, He, & Ji, 2022; McDougall et al., 2022). 
Among other things, economic performance also acts 
moderator relationship between logistics management 
and sustainable business performance higher levels of  
economic performance strengthen the positive impact 
created by logistics management on the environment 
through sustainability (Liu et al., 2020; Liu et al., 2023). 
This is because with increased financial capability firms 
can invest more in green technologies aimed at enhancing 
ecological balance for example waste reduction facilities 
like recycling centers which are strategically located near 
warehousing areas (McDougall et al., 2022; Miklautsch 
& Woschank, 2022). Additionally, strong economic 
conditions allow businesses to optimize their transport 
networks resulting in faster delivery times decreased 
transportation costs lowered carbon dioxide emissions 
released into the atmosphere (Xu et al., 2022; Saidi et al., 
2020). Duong (2018) proposed that apart from mediating 
it should also act moderator so that tangible results are 
achieved through the utilization of  various resources 
involved in the logistics system i.e. labor and, time among 
others Kim (2019) noted that this idea becomes more 
relevant when dealing with rural areas where there is 
need for sustainable development. Pokhrel et al. (2016) 



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remarked upon this concept stating its importance 
towards achieving growth and sustainability within the 
logistics sector particularly in such places like Ejura 
Municipality Ghana. When economic performance is 
integrated as both mediator and moderator it provides 
a deep understanding of  how different aspects come 
together to bring out sustainable performance, especially 
in rural economies where logistics plays key role in the 
realization of  this goal (Kim et al., 2018). Therefore, 
the current study findings support earlier works done 
by scholars who emphasized on direct as well indirect 
impacts of  logistics management on sustainable firm 
performance with more focus being directed towards 
areas located far away from urban centers including Ejura 
Municipality (Ferguson et al., 2000). 

Conceptual Framework
This research examines the interplay of  logistics 
management actions and economic development at 
Ejura Municipality within a conceptual framework that 
considers economic performance as both a mediator and 
moderator. In essence, this framework seeks to explain 
in which ways do logistics activities directly affect local 
growth with economic performance playing the role 
of  an intermediary variable as well as moderating one 
hence leading to different economic outcomes for any 

given municipality. According to them, it is clear from 
their argument that they suggest while on the one hand 
logistics management promotes economic development 
through efficiency gains; cost reduction; and service 
delivery enhancement among others at the same time 
also propose that these activities can only be fostered or 
hindered by how well or poor a locality does in terms 
of  its economy (mediates) Logistics significantly drives 
up economic growths within developed areas than less 
endowed regions. Various studies have indicated that 
there is great need for improvement when it comes down 
to managing supply chains especially where such moves 
are geared towards realizing better performances (Juhala 
et al., 2021; Cass et al., 2023; Korir et al., 2023). It therefore 
explains among other things why this model shows various 
relationships between logistical undertakings and regional 
development particularly in rural settings like Ejura 
Municipality while presenting economic performance as 
acting both mediator and moderator. This method enables 
a comprehensive examination of  how improved logistic 
management brings about better financial results and the 
current states of  economies impacting on transportation 
efficiencies which provide important points that should 
guide decisions aimed towards using logistics as catalysts 
for sustainable rural growths (Lasrado et al., 2023; Kumar 
et al., 2020).

Figure 2: Conceptual Framework
So urce: Researchers own construct, 2024

MATERIALS AND METHODS
Quantitative research uses numerical data for 
statistical analysis (Ali et al., 2020). This research uses a 
quantitative method to measure the influence of  logistics 
management activities on local economic development. 
The researchers developed specific questions and 
gathered quantitative information from respondents, 
which enabled them to conduct robust statistical tests and 
objective inquiry (Mulisa et al., 2022). These participants 
were knowledgeable in logistics management and local 
economic development because they were drawn from 
warehousing personnel, distribution staff, fleet managers, 
inventory controllers, and commercial farmers among 
others within Ejura Municipality; assembly members; 
senior officers from the District Assembly; and merchants 

among others. Purposive sampling was used to select 
individuals with specialized knowledge while convenience 
sampling was utilized when choosing readily available or 
willing respondents. With a 95% confidence level, Vu et 
al.’s formula gave a sample size of  one hundred thirty-
eight people representing sixty-six percent of  the total 
population at risk (Vu et al., 2021). SPSS software which 
is recognized worldwide as one of  the best statistical 
packages for social science research was employed during 
the analysis stage. Pearson’s correlations were used to 
find out how strong or weak a relationship exists between 
logistic activities and economic outcomes while descriptive 
statistics such as tables, means scores, or standard 
deviations were applied in summarizing logistics activities 
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attained by different employees; job positions held by 
these workers; work experience duration so far gained 
by each employee within their respective departments as 
well departmental affiliations concerned about this study. 
Additionally, regression analysis was done to establish 
whether there is any relationship between them, Does 
Logistic Management Activities have an effect on Local 
Economic Performance? Moreover, does it Mediate or 
Moderate such a Relationship?
The model used in this analysis can be expressed 
mathematically as follows:
EP=β0+β1TM+β2DM+β3WM+β4IM+β5CR+ϵ
where EP stands for Economic Performance.
TM is an abbreviation for Transportation Management.
DM stands for Distribution Management.
WM refers to Warehouse Management.
IM denotes Inventory Management.
CR represents Customer Response.
ε is the error term
β0 can be defined as an intercept that shows the estimated 
value of  economic performance when all logistics 
management activities are at zero level.
β1-β5 are coefficients corresponding to each logistic 
management dimension 
The regression model was used to test the relationship 
between logistic management activities (independent 
variables) and economic performance (mediating & 
moderating variables) as well as sustainability (dependent 
variable). These coefficients (β1-β5 ) show how much 

contribution does each activity have towards EP but also 
their combined effect on a firm’s sustainable development. 
The study observed strict ethical considerations in 
research work such as getting informed consent from 
respondents, safeguarding the confidentiality of  obtained 
information, and respecting (Denzin & Lincoln’s 
participant autonomy and privacy principles Creswell & 
Creswell 2017). This implies that the ethics committee 
had reviewed this project thus granting it approval 
based on ethical standards necessary for establishing 
trustworthiness in scientific investigations (Newman et al., 
2021; Zhaksylyk et al., 2023). To make sure that the data 
collected were reliable validity and reliability of  research 
instruments were assessed. Validity entails whether tool 
actually measures what it purports to measure Aithal et 
al. (2020). In this case, reliability was checked by utilizing 
Cronbach’s alpha coefficient which should be equal to 
or greater than 0.7 Awang et al.(2021); Elias et al.(2020); 
Van de Winckel et al. (2022). This table indicating 
construct reliability confirms the dependability/stability 
of  measurement tools thereby enhancing credibility or 
trustworthiness Guest et al. (2020). However, the design 
itself  allows us to understand better how different 
components of  Logistic systems impact on overall 
firm sustainability especially within rural growth areas 
where there might be limited accessibilities concerning 
transportation among others. 

RESULTS AND DISCUSION

Table 1: Reliability test
 Va riable C ronbach’s Alpha No. Items

1 T ranspo rtation Management ™ .880 5
2 Invento r y Management (IM) .877 5
3 Wa reho use Management (WM) .867 5
4 C ustome r Response (CR) .851 6
5 Distribution Management (DM) .843 5
6 R u ral economic growth (REG) .843 5
7 Ove rall .873 31

So u rce: Respondents’ opinion analyzed using SPSS version 23 

The study found that variability can be seen across the 
variables, which was later confirmed by a preliminary 
survey on the questionnaire. The credibility, quality and 
reliability of  a research work can be increased through 
measures aimed at improving its validity (Creswell & 
Creswell, 2017) following strict methods and validation 
approaches meant to minimize biases and errors 
(Moore et al., 2021). According to the 2010 Population 
and Housing Census (Wongnaa et al., 2021), there is an 
almost equal distribution of  sex in Ejura-Sekyedumase 
Municipality (50.2% male, 49.8% female) but with slight 
male dominance (sex ratio: 100.8). The population was 
predominantly young (41.1% youth, 4.4% aged) with 
rural areas accounting for half  of  all residents (49.7%). 
The age dependency ratio stood at 83.6 indicating high 

dependence on the working age group but with gender 
disparities (88.0 males; females:79.37). Understanding 
community dynamics and development planning requires 
this demographic understanding among others too. In 
total the municipality has a population of  about 83941 
people living in households numbering approximately 
16402 giving an average household size of  five point one 
person per dwelling unit. Among children’s homes, those 
headed by single parents accounted for more than twice 
as many as those headed by couples while nuclear families 
represented slightly over a quarter of  them all. More than 
sixty percent (60%) of  adults aged eleven years or more 
have attained literacy skills within Ejura-Sekyedumase 
Municipality; however, boys were found to be more 
literate than girls with achievement levels reaching 



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33.5% among females compared to 66.6% amongst 
their male counterparts who also recorded higher rates 
for proficiency in English language including reading 
writing speaking understanding listening etcetera together 
alongside other Ghanaian languages spoken countrywide. 
Literacy among adults aged fifteen years or more indicated 
that about one-third had never attended any formal 
education system at all, another 25 were still attending 
classes currently, while the remaining quarter had already 
gone through some schooling before dropping out again 
without completing it fully. The economically active 
population within this area was estimated at (74.6%) 
where (97.4%) were employed and (2.6%) remained 
jobless despite being part of  the working age bracket. 
Skilled farming activities accounted for most jobs created 
by self-employed individuals followed by service provision 

which included sales crafts such as tailoring barbering 
salons etcetera; management professional technical roles 
formed a very small proportion while the majority fell 
under unskilled casual labourers category especially those 
engaged in private informal sector businesses without any 
employees under them Agriculture dominated household 
economic activity with crop production being practiced 
by more than 9 out every 10 farm households surveyed 
here. The fourth chapter provides empirical data analysis 
from fieldwork done during research which involved 
collection, processing and interpretation of  various 
aspects relating to participants’ demographic information 
together with the effects logistics management has on the 
rural economy within the Ejura Municipal Assembly area.  
Table 2 below sample size, response rates, and gender 
distribution.

Table 2: Demographic characteristics of  respondents
Demog raphic Va riable Category F req uenc y Pe rcent
Gender r Male 58 58

Female 42 42
Ma r ried Stat us Single 41 41

Ma r ried 59 59
Age in Yea rs 20 to 30 23 23

31 to 40 38 38
41 to 50 24 24
Above 50 13 13

Highest Ed ucation Diploma o r below 31 31
Deg ree 35 35
Post G rad uate 25 25
Professional  9  9

Wo rking Experience Below 5  years 25 25
5-10 ye rs 29 29
11-15  yea rs 16 16
Above 15 yea rs 20 20
Othe rs 10 10

So u rce: Fieldwork, 2024 

The statistics show that 35 individuals have a bachelor’s 
degree, 31% have diplomas or lower-level qualifications 
and 9% have professional body certifications. Moreover, 
postgraduate qualifications were held by 25 persons. 
This wide range of  educational backgrounds enabled 
the respondents to give meaningful answers to the 
questionnaire. 

Descriptive Analysis
According to Mesfin (2016), five points were determined 
equally spaced on a Likert scale ranging from “strongly 
disagree” to “strongly agree.” The interval values are 
such that the mean value for strong disagreement is 
given as between 1 and 1.8 while somewhat disagreement 
falls within the range of  1.81 and 2.6; 3.41 up until 
4.2 suggests somewhat agreement whereas strong 
agreement lies around Mean Value:4.21-5.00 [as cited in 

Girma,2018]. To get this measurement element in each 
question there should be a difference of  at least eight 
tenths from one point to another through dividing with 
a maximum score which is five Standard deviations were 
used during data analysis whereby small depicts closeness 
between data points’ distances from average while large 
implies wide spreadness where deviation measures how 
well mean represents data (Schober et al.,2021). In terms 
of  education levels; Bachelors constituted 35% followed 
by diploma holders at 31% then certificates accounted 
for 9 % while masters comprised 25%, thus enhancing 
richness brought about by different types of  educational 
qualifications among those who responded to the survey 
for equalizing intervals on a Likert scale with five points 
ranging from “strongly disagree” to “strongly agree,” 
Mesfin (2016) used heuristic method so that strong 
disagreement corresponds mean value between 1 and 



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1.8; somewhat disagreement takes place when mean 
falls within the range of  1.8 one six two thousand six 
hundred; neutrality sets the threshold at two thousand 
six hundred one three four zero; somewhat agreement 
lies between three thousand four hundred one and four 
two zero while strong agreement falls within the range of  
four thousand two hundred one five thousand [as cited in 
Girma, 2018]. One measure of  dispersion is the standard 
deviation, which indicates how closely grouped data are 
around an average value. When there is a small standard 
deviation, this means that most points fall near some 
mean score; conversely if  there is large standard deviation 
then it implies that many scores are far away from average 
point. The education levels of  the respondents were as 

follows: 35% held bachelor’s degrees, 31% had diplomas 
or lower qualifications, 9% possessed professional body 
certifications and 25% had postgraduate qualifications 
thus making their answers more diverse since they came 
from different educational backgrounds.  Mesfin (2016), 
as cited by Girma (2018), employed a five-point Likert 
scale with equal intervals from strongly disagree to 
strongly agree, where mean values reflected agreement 
levels, setting a 0.8 limit for questionnaire items. The 
analysis involved standard deviations to evaluate 
the mean representation of  data; smaller deviations 
indicated data points clustered near the mean, while 
larger deviations indicated more dispersed data points 
(Schober et al., 2021).  

Table 3: Descriptive statistics
Va riable N Mean Std. Deviation
T ranspo rt Management 100 3.502 .764
Invento r y Management 100 3.431 .770
Wa reho use Management 100 3.405  .727
C ustome r Response 100 3.433 .628
Distribution Management 100 3.360 .676
R u ral Economic Development 100 3.483 .601

Source: Respondents' opinions were analyzed using SPSS  

A Transportation Management score of  3.502 (SD=0.76) 
is shown in Table 3, which means that most people agree 
on it. According to Table 1, Inventory Management 
has a mean of  3.43 and a standard deviation of  0.77, 
suggesting general agreement within the range from 3.41 
to 4.2. The mean for Warehouse Management is also 3.40 
which indicates an agreement within this same range too. 
A high standard deviation shows many different opinions 
among respondents about a measure while lower values 
imply similar views towards that construct inventory 

management had a mean of  warehouse management (M 
= 3:40; SD = 0:72; n.d.).
Kimario et al.’s study found that correlations between 
variables were small if  they ranged from .01-.31; 
moderate when between .30-.70;.71-.90 represented 
large relationships while anything greater than or equal 
to one signifies very strong correlation relationship exists 
between these two items Customer Service Management 
(M=3:43; SD=0:63); respondents’ overall agreement 
reflected this fact in Table 2.

Table 4: Correlations between Logistics Management Activities and Firm sustainability
Co r relations

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T ranspo rt Management Pea rson Co r relation 1
Sig. (2- tailed)

Invento r y Management Pea rson Co r relation .8760 ** 1
Sig. (2- tailed) .000

Wa reho use Management Pea rson Co r relation .868** .868** 1
Sig. (2- tailed) .000 .000

C ustome r Se rvice 
Management

Pea rson Co r relation .892 ** .858 ** .853** 1
Sig. (2- tailed) .000 .000 .000

Dist rib ution Management Pea rson Co r relation .790** .814** .808** .838** 1
Sig. (2- tailed) .000 .000 .000 .000



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According to Liu et al. (2023), this model fails to account 
for 11.9% of  the variability in Economic Performance 
regarding local community development within the Ejura 
Municipality, which means that there are other factors at 
play here. It implies that logistics management activities 
such as transport management, inventory management, 
warehouse management, customer service management, 
and distribution management explain 88.1% of  the 

changes in economic performance within the local 
community development of  Ejura municipality. This 
finding indicates a large number or high proportion maybe 
all but few or some; many but not all logistics activities 
greatly affect people’s lives through their communities 
by improving their financial abilities thus contributing 
towards overall growths at Ejura Municipality level 
involving businesses and individuals alike.

R u ral Economic 
Development

Pea rson Co r relation .898** .884** .873**  .828** .850** 1
Sig. (2- tailed) .000 .000 .000 .000 .000

**. The Co r relation is significant (p < 0.01 level (2-tailed), N=100
So u rce: Field Wo rk (2024)

Table 5: Multiple Regression Model Summa r y 
Model R R Sq ua red Adj usted R sq ua red Std. E r ro r of  the Estimate
1 .941a .886 .881 .20776

Table 6: The Determinant Factors of  Logistics Activities on Rural Economic Development 
Model Unstanda rdized Coefficients Standa rdized Coefficients t Sig.

B Std. E r ro r Beta
1 (Constant) .806 .116 6.958 .001

T ranspo rt  Management .386 .071 .489 5.519 .000
Invento r y Management .185 .066 .243 2.795 .006
Wa reho use  Management .159 .067 .190 2.338 .021
C ustome r Se rvice  Management -.233 .083 -.244 -2.766 .007
Dist rib ution Management .289 .061 .323 4.823 .000

a. Dependent Variable: Firm Sustainability
Source: SPSS version 21 was employed to analyze the opinions of  respondents

This study examines how logistics operations affect 
community development within the Ejura Municipality 
in Ghana with regard to mediating as well as moderating 
influences of  firm performance. According to the results, 
there is a significant relationship between transport 
logistics and firm performance where management of  
transport logistics greatly impacts local economic growth 
(B=.386, p<0.001) which is consistent with other studies 
(Kim et al., 2022; Thorne et al., 2024; Pokhrel et al., 2024; 
Mamad & Chahdi, 2013; Oumami et al., 2024). The findings 
also reveal that good warehouse management has positive 
correlation with Ejuras’ economic performance implying 
that better storage facilities will lead to high levels of  
income generation among businesses operating at this 
level while lowering their operational expenses through 
distribution efficiencies within the region. In addition, 
it was found that distribution logistics significantly 
contributes to local economies (coefficient=0.289, 
p<0.01) which confirms previous research findings 
(Williams, 2019; Ferguson, 2000).
Furthermore, inventory control systems were discovered 
to have certain impacts on rural development where a 
positive relationship exists between these two variables 
indicating that more should be done by organizations 
to improve customer service delivery especially those 

targeting customers from remote areas who need goods 
urgently thus enhancing their satisfaction levels thereby 
leading into increased sales volumes accompanied by 
higher returns for investment. This understanding 
highlights the importance of  considering different 
aspects related with supply chain management when 
trying improve living standards among people living in 
villages.
Inventory management was shown to be positively related 
to rural economic growth but negatively associated with 
it in terms of  its effect on firm performance levels since 
if  not controlled well may result in overstocking or under 
stocking either way affecting business operations hence 
customer needs should always come first during decision 
making processes about stock supplies because failure do 
this might lead dissatisfaction on part customers thereby 
resulting low revenues being collected by system.
These findings demonstrate that there are various 
ways through which logistics can be used as a tool for 
enhancing sustainable development within municipalities 
like Ejura in Ghana. The study also sought to establish 
whether or not there were any significant differences 
between males and females regarding their perceptions 
towards such issues but no statistically significant 
gender-based disparities were observed thus suggesting 



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Am. J. Geo Spat. Technol. 3(1) 101-109, 2024

that everybody regardless of  their sex should have 
equal opportunities when dealing with matters about 
community growth through supply chain management 
activities. 100 respondents participated in this research 
by completing a structured questionnaire designed on 
five point Likert Scale which was analyzed quantitatively 
using SPSS version 21 where OLS regression models 
were run. It was found that transportation logistics 
management is significantly related to rural economic 
development which means transport systems play crucial 
roles in fostering growth especially areas located far from 
major towns. Additionally distribution as well warehouse 
logistics were positively associated with local economies 
within the Ejura Municipality, thereby indicating that 
they contribute greatly towards these regions’ prosperity. 
These results showcase need for effective transport, 
inventory, customer response and distribution among 
others so that more value can be created at grassroots 
levels. Properly managed warehouses act as catalysts for 
economic transformation since they reduce operational 
costs while heightening productive capacities among 
firms hence attracting investments into different sectors 
including agriculture, manufacturing; retailing; wholesaling 
etc. Policymakers could use such findings to guide them 
during decision-making processes aimed at improving 
infrastructure facilities like roads; storage facilities; and 
distribution networks among others to enhance economic 
performance across rural areas particularly those located 
near urban centers because improved accessibility enhances 
connectivity thereby enabling smooth flow goods services 
promoting sustainable development among people living 
within such regions

Implications of  the Study
In enhancing economic outcomes and sustainability in 
rural areas, this study provides important directions for 
policymakers and businesses. The research also brings to 
light the importance of  distribution logistics which ensures 
that goods reach their destination at the right time and are 
cost-effective such as transport logistics that contribute 
positively towards rural growth hence the need for more 
infrastructure investments to spur economic activities as 
well as efficient warehouse management through improved 
storage facilities can significantly cut down costs while 
increasing efficiency.

Future Study of  the Research
However, this study has a limited scope about generalizability 
due to its concentration on Ejura Municipality only but 
other than that; there might be an oversight on some 
complexities associated with different ways of  doing 
things or methods used in carrying out various logistical 
functions if  quantitative data collected from structured 
questionnaires is relied upon alone. Thus, it could be 
helpful if  future researchers adopted mixed methods 
approach besides looking into procurement related issues 
together with technology integration among other logistics 
operations for wider understanding.

CONCLUSION
The research shows that there is a strong relationship 
between logistic management and business sustainability 
in rural areas within Ejura Municipality where these two 
are mediated by economic performance. Therefore, we can 
say without any doubt that transportation warehousing/
distribution logistics are very important in terms of  
driving economies forward, especially those located away 
from big cities like Ejura Municipality which requires 
strong infrastructural support coupled with streamlined 
operations if  they want to grow economically sustainably 
over time. These findings have great significance not only 
for policymakers but also for those leaders who want use 
supply chain management ensure sustainable development 
takes place in rural regions.

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