MJAMR

Relationship Between External Business Environment And Effective Pricing Among Clearing And Forwarding Logistics Enterprises In Nakawa Division, Kampala.

Kayiwa Nicholas, Irumba Alex


Abstract

The external business environment significantly influences pricing strategies and effectiveness in competitive service industries. This study examined the relationship between external business environment factors and effective pricing among clearing and forwarding logistics enterprises operating in Nakawa Division, Kampala, Uganda. The study employed a cross-sectional survey design with quantitative and qualitative approaches. A sample of 196 respondents was selected from 68 clearing and forwarding firms using stratified random sampling, including managers, pricing officers, operations staff, and sales personnel. Data were collected through structured questionnaires and key informant interviews. Analysis included descriptive statistics, Pearson correlation, and regression analysis using SPSS version 26. The study revealed a significant positive relationship (r = 0.738, p < 0.01) between external business environment and pricing effectiveness. Competitive intensity showed the strongest correlation with pricing flexibility (r = 0.821, p < 0.01). Regulatory environment correlated significantly with pricing transparency (r = 0.764, p < 0.01). Economic conditions demonstrated a strong positive correlation with pricing profitability (r = 0.712, p < 0.05). Customer bargaining power correlated moderately with pricing strategies (r = 0.645, p < 0.05). The regression model explained 64.7% of variance in pricing effectiveness (R² = 0.647). 73.5% of enterprises reported that external environmental factors significantly constrained their pricing autonomy. External business environment significantly influenced pricing effectiveness among clearing and forwarding logistics enterprises in Nakawa Division. Competitive pressures, regulatory frameworks, economic volatility, and customer power dynamics directly shaped pricing strategies, profitability margins, and market positioning. Enterprises demonstrating environmental scanning capabilities and adaptive pricing responses achieved superior pricing effectiveness. Logistics enterprises should establish systematic environmental monitoring mechanisms to anticipate and respond proactively to external changes. Industry associations should advocate for regulatory reforms that balance consumer protection with business

Keywords

External business environment pricing effectiveness logistics industry clearing and forwarding
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Kayiwa Nicholas & Irumba Alex (2025). Relationship Between External Business Environment And Effective Pricing Among Clearing And Forwarding Logistics Enterprises In Nakawa Division, Kampala. Metropolitan Journal of Academic Multidisciplinary Research, 4(12). https://journals.miu.ac.ug/pages/article.php?article_id=537

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