LOGISTICS STRATEGIES AND PERFORMANCE OF FIRMS IN KENYA. A CASE OF FIRMS IN NAIROBI CITY COUNTY

Logistics

Logistics firms represent the backbone of growth in developing economies. However, despite the critical role they play, the performance of Kenyan logistics firms is weak and many fail within 5-10 years from inception. Intense competition under the global economic framework requires logistics firms to reconsider their competitive strategies vis-à-vis their rivals. Logistics strategies are used by enterprises as formidable strategic variables to outstrip the competition and have become an essential means for the firms to improve their performance and to maintain its effectiveness on the market. The purpose of this study therefore was to investigate the influence of logistics strategies on firms’ performance. Specifically the study seeks to: establish the influence of strategies in logistics on competitiveness of logistics firms in Kenya. The study was based on the strategic diffusion theory. Descriptive survey research design was adopted in the study. The target population was 972 employees drawn from the 2016 top one hundred logistics firms in Kenya. A sample size of 98 employees was selected by use of stratified random sampling. Primary and secondary data was collected via a self-administered questionnaires and document schedule respectively. Validity and reliability of the instrument was determined by expert judgment and internal consistency measure respectively. The collected data was processed and analyzed using SPSS software and descriptive statistics generated. The study was of value to researchers and scholars, as it formed a basis for further research as well as building on the existing body of knowledge on logistical innovations. The study has helped in determining and explaining the influence of logistics strategies on firms’ performance in Kenya. The results of the study had a significant managerial and theoretical implications. The findings of the study indicated a positive relationship between the independent and the dependent variables. Cross docking reported a positive response with a mean of above 3.4. Reverse logistics was also another variable that gained a significantly positive response with a mean of above 3.7. The study found that reverse logistics influenced operational performance of a company to a great extent. Other variables such as order consolidation and block chain technology gained a positive response with mean of each above 3.7.

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