Government Trade Policies and Supply Chain Performance of Logistics Firms Based in Mombasa County, Kenya
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Date
2023
Authors
Chao, Anselm Mwadime
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Logistics firms are among the companies that have embraced supply chain performance and have
made a lot of progress in terms of service delivery. However, they have faced a number of
challenges in their operations that have affected their supply chain performance. According to
the Kenya Institute of Supply report (2019), supply chain performance has declined over time
given changes in globalization and volatile fuel prices. This decline is in terms of service
delivery and customer satisfaction. Thus, the aim of the current study examined the effect of
government trade policies on the supply chain performance of logistics firms based in Mombasa
County, Kenya. The specific objectives of the study were; to examine the effect of advance
taxation policy, licensing policy, price control, and tariff policy on the supply chain performance
of logistics firms based in Mombasa County, Kenya. The theory of constraint and Porter’s value
chain theory guided the study. The target population was 8 logistics firms based in Mombasa
County. The study employed a descriptive research design. The respondents include top
management staff, middle management staff, and lower management staff of the logistics firms.
Taro Yamane's formula (1967) was employed to calculate a sample size, which was 120
respondents Questionnaires with open ended question was used to gather primary data. The study
employed content validity to ascertain validity, while reliability was ascertained by conducting a
pilot study, using the split-half method to calculate Cronbach’s alpha values. For the quantitative
data collected a multiple linear regression model was conducted to examine the relationship
between study variables Tables, pie charts, and graphs were used to present the findings for easy
comprehension and interpretation. Based on the findings, the Government trade policies were
found to influence the supply chain performance of logistic companies in Mombasa County,
Kenya. Different variables depicted varied influences on the dependent variable. Two variables
that is Licensing policy and price control depicted a positive influence supply chain performance
(0.137, and 0.130). While the other two taxation policy and tariff policies negative influenced on
the supply chain performance (-0.150 and -0.295). The results recommended policies guiding the
taxation and government tariffs. Moreover, licensing policy and price control should be
enhanced for more favourable outcomes. This is because the policies have positive impact on
supply chain performance. The findings may be important to government policymakers in
formulating appropriate policies guiding logistics firms. The study omitted other trade barriers
such as quota systems and subsidies thus further study can be done to consider these trade
barriers and establish their influence of the supply chain performance of logistics companies.
Lastly, to ensure research is done under ethical conditions, privacy of respondents and treating
collected data with a lot of integrity was considered.
Description
A Research Project Submitted to the School of Business,
Economics and Tourism in Partial Fulfilment of the
Requirements for the Award of Masters Degree in Business
Administration (Procurement and Supply Chain Management) of
Kenyatta University.
Keywords
Government Trade Policies, Supply Chain Performance, Logistics Firms, Mombasa County, Kenya