RELATIONSHIP BETWEEN FOURTH PARTY LOGISTICS SERVICES AND PERFORMANCE OF MANUFACTURING FIRMS IN KENYA

Betty Atieno Aloo, Dr. Gichana James Ongwae

Abstract


This study sets out to investigate the relationship between fourth party logistics services and performance of manufacturing firms in Kenya. More specifically, the study seeks to establish the influence of transport management and logistics information management system on performance of manufacturing firms in Kenya. The study was guided by the logistics theory and the principal agency theory. To achieve this, the study reviewed both theoretical and empirical literature and then proposed the research methodology that address the gaps identified in literature as well as answer the stipulated research questions. This research study adopted a descriptive research design approach. The study preferred this method because it allowed an in-depth study of the subject. Data was collected using self-administered questionnaires. The data collected was analyzed by use of descriptive and inferential statistics. Multiple regression model was used to show the relationship between the dependent variable and the independent variables. The quantitative data generated was keyed in and analyzed by use of Statistical Package of Social Sciences (SPSS) to generate information which was presented using tables, charts, frequencies and percentages. The response rate of the study was 95%. The findings of the study indicated that transport management and logistics information management system have a positive relationship with performance of manufacturing firms in Kenya. Finally, the study recommended that manufacturing firms should embrace fourth party logistics so as to improve performance and further researches should to be carried out in other sectors to find out if the same results can be obtained.

Key Words: Transport Management, Logistics Information Management, Fourth Party Logistics, Performance


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