Abstract:
Fleet management is one of the most critical yet underexplored strategic functions in transport
organizations operating in resource-constrained environments. This study examined the effect of
fleet management practices, specifically maintenance management, fuel management, and driver
management, on the organizational performance of National Transport PLC, a major freight
transport company in Ethiopia. The study was motivated by persistent operational inefficiencies
in the Ethiopian transport sector, including frequent vehicle breakdowns, rising fuel costs, unsafe
driving practices, and limited adoption of modern fleet technologies. The study was guided by
Resource-Based View (RBV) Theory, Systems Theory, Reliability-Centered Maintenance (RCM)
Theory, and Human Capital Theory, which provided the theoretical foundation for examining the
relationship between fleet management practices and organizational performance. A quantitative
research approach with an explanatory research design was employed. Data were collected from
223 respondents out of 229 distributed questionnaires, achieving a response rate of 97.4%.
Multiple linear regression analysis was used to examine the relationships among the study
variables. The findings revealed that maintenance management and fuel management practices
had a statistically significant and positive effect on organizational performance, while driver
management showed a positive but statistically non-significant effect. Maintenance management
emerged as the strongest predictor, followed by fuel management and driver management.
Together, the three practices explained 76.6% of the variance in organizational performance. The
study concludes that treating fleet management as an integrated system rather than isolated
activities substantially improves vehicle availability, cost efficiency, safety, and service reliability.
The study recommends that transport companies in Ethiopia and similar developing contexts
invest in coordinated maintenance systems, effective fuel management practices, and continuous
driver development programs to enhance organizational performance and operational
sustainability.