EFFECT OF INFORMATION SHARING SYSTEM ON PERFORMANCE OF LOGISTICS FIRMS IN NAIROBI CITY COUNTY

Sophia Wambui, Charles K. Ndeto

Abstract


Logistic firms in Kenya face challenges such as low customer satisfaction mainly on issues such as delayed cargo collection to and from the point of origin. Logistic firms are also characterized by untimely delivery of goods and high cost of service delivery including maintenance cost, fuel cost and labor cost. The objective in this study was to examine the effect of information sharing system on performance of logistics firms within Nairobi City County. The study utilized an explanatory research approach. Moreover, unit of analysis was all 112 logistic firms registered with Kenya Revenue Authority. The unit of observation was heads of warehouse, transport and customer service departments in the logistic firms. The target population was therefore 336 heads of warehouse, transport and customer service departments in all the 112 logistic firms based in Nairobi County. Additionally, the study used stratified random sampling in selection of the sample size from the target population. To gather primary data, this research used semi-structured questionnaires. Research instrument pre-testing was carried out among logistic firms within Kiambu County with a pilot group of 18 respondents to test the validity and reliability of research tools. Qualitative data was analyzed by employing content analysis and results presented in narrative format. Inferential and also descriptive statistics were used in quantitative data analysis with the support of SPSS version 23. Frequency distribution, percentages, mean and standard deviation were included in descriptive statistics. Inferential statistics comprised of regression as well as Pearson correlation analysis, which were used to assess the relationship between study variables. Findings from quantitative data were presented using tables as well as graphs. The study found that there is a significant positive effect was found between information sharing system and logistics firms? performance in Nairobi City County. This study recommends that logistics firms should adopt information sharing system to help improve cost effectiveness, on-time delivery, accurate as well as timely reporting, and visibility of supply chain.


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