INFLUENCE OF LOGISTICS MANAGEMENT PRACTICES ON PERFOMANCE OF OIL MARKETING COMPANIES IN NAIROBI COUNTY, KENYA
Abstract
The purpose of the study was to examine the influence of logistics management on performance of oil marketing companies in Nairobi County, Kenya. The study was restricted in scope to cover only downstream oil marketing companies in the Kenyan oil industry especially those that had operations in Nairobi County, Kenya. The study was done in major oil firms that presented a true representation of the Kenyan oil industry in all aspects. The target sample population of the study was 164 employees drawn from different oil marketing companies in Nairobi County. According to the regression analysis there existed a relationship between independent variables and dependent variable with a correlation coefficient of 0.799. It showed that the independent variables in the study were able to explain 63.80% variation in the performance of the oil marketing companies while the remaining 36.20% was explained by the variables or other aspects outside the model. There is need for the firms to have a good coordination on the transport mechanisms as this would bring the benefits to a maximum. The study recommended that the organizations need to adopt he usage of auto-ID technologies can improve accuracy. The of ID technologies is encouraged since it will help in product marking to realize accuracy and efficiency to effectively enhance their operations. The organizations need to invest in the information management because the flow or movement of materials or money is usually triggered by associated information movement. This may offer the good design of supply chain and improve in supply chain performance of the firms.
Key Words: Supplier Management, Transport Management, Warehouse Management, Information Management, Marketing companies
CITATION: Mangala, F. O., & Moronge, M. (2019). Influence of logistics management practices on performance of oil marketing companies in Nairobi County, Kenya. The Strategic Journal of Business & Change Management, 6 (1), 440 – 457.
Full Text:
PDFReferences
Achieng, E., & Rotich, G. (2013). Factors affecting effective distribution of petroleum products in Kenya: A case of Kenya Pipeline Company (KPC). International Journal of Social Sciences and Entrepreneurship, 1(7), 579-600.
Achola, V. O. (2012). The role of logistics outsourcing in leveraging operational competitiveness among Blue Chip Companies in Kenya (Doctoral dissertation, University of Nairobi, Kenya)
Aramyan, L. H., Oude Lansink, A. G., Van Der Vorst, J. G., & Van Kooten, O. (2007). Performance measurement in agri-food supply chains: a case study. Supply Chain Management: An International Journal, 12(4), 304-315.
Argyres, N., & Mayer, K. J. (2007). Contract design as a firm capability: An integration of learning and transaction cost perspectives. Academy of Management Review, 32(4), 1060-1077.
Bashuna, A. (2013). Factors affecting effective management of the procurement function at Nakuru North Sub-County. International Journal of Business and Management, 1(7).
Barua, J. J. (2010). Challenges facing supply chain management in the oil marketing companies in Kenya. Unpublished MBA thesis, University of Nairobi.
Blyth, M., Hodgson, G. M., Lewis, O., &Steinmo, S. (2011). Introduction to the Special Issue on the Evolution of Institutions. Journal of institutional economics, 7(03), 299-315
Bolumole,Y.A.,Grawe,S.J., & Daugherty, P. J. (2016). Customer Service Responsiveness in Logistics Outsourcing Contracts: The Influence of Job Autonomy and Role Clarity among On-site Representatives. Transportation Journal, 55(2), 124-148.
Bryman, A. (2016). Social research methods. Oxford university press.
Busi, M., & Bititci, U. S. (2006). Collaborative performance management: present gaps and future research. International Journal of Productivity and Performance Management, 55(1), 7-25.
Camerer, C. F. (2011). Behavioral game theory: Experiments in strategic interaction. Princeton University Press.
Chege, J. (2012). Challenges of strategy implementation for firms in the petroleum industry in Kenya. Unpublished Masters od Business Administration Thesis: University of Nairobi.
Constitution, K. (2010). Government printer. Kenya: Nairobi.
Council, S. C. (2008). Supply chain operations reference model. Overview of SCOR version, 5(0).
Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.
Creswell, J. W., & Poth, C. N. (2017). Qualitative inquiry and research design: Choosing among five approaches. Sage publications.
Drucker, P. F. (2007). Management challenges for the 21st century. Routledge.
Ernst, H., Hoyer, W. D., Krafft, M., & Krieger, K. (2011).Customer relationship management and company performance—the mediating role of new product performance. Journal of the Academy of Marketing Science,39(2), 290-306.
Espino‐Rodríguez, T. F., &Padrón‐Robaina, V. (2006).A review of outsourcing from the resource‐based view of the firm. International Journal of Management Reviews, 8(1), 49-70.
Farquhar, J. D., & Rowley, J. (2009). Convenience: a services perspective marketing Theory, 9(4), 425-438.
Frémont, A. (2009). Empirical evidence for integration and disintegration of maritime shipping, port and logistics activities.
Fugate, B. S., Mentzer, J. T., & Stank, T. P. (2010). Logistics performance: efficiency, effectiveness, and differentiation. Journal of business logistics, 31(1), 43-62.
Gist, D. (2013). The impact of the oil industry on economic growth performance in Nigeria.
Gu, J., Goetschalckx, M., & McGinnis, L. F. (2010). Research on warehouse design and performance evaluation: A comprehensive review. European Journal of Operational Research, 203(3), 539-549.
Handoko, B. L., Aryanto, R., & So, I. G. (2015). The impact of enterprise resources system and supply chain practices on competitive advantage and firm performance: Case of Indonesian companies. Procedia Computer Science, 72, 122-128.
Hassan, I. A. Y. (2013). Customer service and organizational growth of service enterprise in Somalia
Jayaram, J., & Tan, K. C. (2010). Supply chain integration with third-party logistics providers. International Journal of Production Economics, 125(2), 262-271.
Kalashnikov, V. V. (2013). Mathematical methods in queuing theory (Vol. 271). Springer Science & Business Media.
Kandampully, J. (1998). Service quality to service loyalty: A relationship which goes beyond customer services. Total quality management, 9(6), 431-443.
Kimani, C. W. (2013). Supply Chain Management Challenges in Kenya Petroleum Industry: Case of National Oil Corporation of Kenya. International Journal of Social Sciences and Entrepreneurship, 1(3), 231-246.
Kiriago, A. N., & Bwisa, H. M. (2013). Working environment factors that affect quality of work life among attendants in petrol stations in Kitale town in Kenya. International Journal of Academic Research in Business and Social Sciences, 3(5), 289.
Kotler, P., Shalowitz, J., & Stevens, R. J. (2011). Strategic marketing for health care organizations: building a customer-driven health system. John Wiley & Sons.
Kumar, R. (2019). Research methodology: A step-by-step guide for beginners. Sage Publications Limited.
Makau, L. K. (2013). Customer service recovery processes: A case study of Kenya Commercial Bank (KCB) Group (Doctoral dissertation).
Maklan, S., Knox, S., &Peppard, J. (2011). Why CRM Failsand How to Fix It. MIT Sloan Management Review, 52(4), 77.
Martin, J. A., &Eisenhardt, K. M. (2010).Rewiring: Cross-business-unit collaborations in multibusiness organizations. Academy of Management Journal, 53(2), 265-301.
Mboroto, S., & Finance, I. (2013). The effect of mergers and acquisitions on the financial performance of petroleum firms in Kenya.
Mfwaya, J. L., & Njihia, D. J. M. (2013). Lead Time Management And Customer Satisfaction In The Telecommunication Industry in Kenya (Doctoral dissertation, Doctoral dissertation, University of Nairobi).
Min, H., &Ko, H. J. (2008). The dynamic design of a reverse logistics network from the perspective of third-party logistics service providers.International Journal of Production Economics, 113(1), 176-192.
Mugenda, A. G., & Mugenda, A. G. (2012). Research methods dictionary. Nairobi, Kenya: Applied Research & Training Services.
Mukolwe, G. A., & Wanyoike, D. M. (2015).An Assessment of the Effect of Logistics Management Practices on Operational Efficiency at Mumias Sugar Company Limited, Kenya. International Journal of Economics, Commerce and Management.
Mulama, O. A. (2012). Logistics outsourcing practices and performance of large manufacturing firms in Nairobi, Kenya. School of Business University of Nairobi.
Myerson, R. B. (2013). Game theory. Harvard university press.
Mwangangi, P. W. (2016). Influence of logistics management on performance of manufacturing firms in Kenya (Doctoral dissertation, COHred, supply chain managent, JKuat).
Mwanzia, M. (2014). Determinants Influencing Strategic Performance Of Indigenous Third Party Logistic Businesses In Transport Sector In Kenya. Strategic Journal of Business & Change Management, 1(2).
Mwikali, R., & Kavale, S. (2012). Factors affecting the selection of optimal suppliers in procurement management. International Journal of humanities and social science, 2(14), 189-193.
Njambi, E., & Katuse, P. (2013). Third party logistics in distribution efficiency delivery for competitive advantage in fast moving consumer goods companies in Kenya.
Njeri, S. N., & Kibachia, M. J. (2016). Effect Of Supply Chain Restructuring On Performance Of Oil Marketing Companies In Rwanda. A Multi Survey On The Oil Marketing Companies In Rwanda. European Journal Of Business And Social Sciences, 5(01), 160-180.
Nyaberi, J. N., &Mwangangi, P. (2014). Effects of logistics management practices on organization performance in Kenya: A case of Rift Valley Bottlers Limited in UasingishuCounty. International Journal of Social Sciences and Entrepreneurship, 1(12), 458-473.
Nordas, H., Pinali, E., & Grosso, M. G. (2006).Logistics and time as a trade barrier (No. 35).OECD Trade Policy Working Paper.
Oloruntoba, R., & Gray, R. (2009).Customer service in emergency relief chains. International Journal of Physical Distribution & Logistics Management, 39(6), 486-505.
Ongori, H., & Migiro, S. O. (2010). Information and communication technologies adoption in SMEs: literature review. Journal of Chinese Entrepreneurship, 2(1), 93-104.
Osborne, M. J. (2004). An introduction to game theory (Vol. 3, No. 3). New York: Oxford university press.
Owano, L. E., (2013), the emergence of Third Party Logistic companies logistics management in Kenya: European Journal of Purchasing and Supply Management, 27-35.
Reuter, C., Foerstl, K. A. I., Hartmann, E. V. I., & Blome, C. (2010). Sustainable global supplier management: the role of dynamic capabilities in achieving competitive advantage. Journal of Supply Chain Management, 46(2), 45-63.
Richards, G. (2017). Warehouse management: a complete guide to improving efficiency and minimizing costs in the modern warehouse. Kogan Page Publishers.
Rushton, A. (2007). International logistics and supply chain outsourcing: from local to global.
Saliba, M. (2013), Evaluation of the implementation of public sector supply Chain management and challenges: A case study of the central district municipality, West province, South Africa; African Journal of Business Management, 2 (12), 230-242
Scrioşteanu, A., &Popescu, D.(2012). Customer Service-The Important Goal of Logistics Annals of the University of Craiova, Economic Sciences Series, 1
Sohal, A. S., & Rahman, S. (2013). Use of third party logistics services: an Asia-Pacific perspective. In Handbook of Global Logistics (pp. 45-67).Springer New York.
Tilokavichai, V., Sophatsathit, P &Chandrachai, A. Establishing Customer Service and Logistics Management Relationship under Uncertainty
Van Riel, A. C., Calabretta, G., Driessen, P. H., Hillebrand, B., Humphreys, A., Krafft, M., &Beckers, S. F. (2013). Consumer perceptions of service constellations: implications for service innovation. Journal of Service Management, 24(3), 314-329.
Wang, P., & Gong, M. (2014). How Third Party Logistics providers manage relationship with customers—a multiple case study.
Wanjiru, N. A. (2013). Challenges Of Import Logistics Outsourcing By Manufacturing Firms In Nairobi (Doctoral dissertation, University of Nairobi
Waring, S. P. (2016). Taylorism transformed: Scientific management theory since 1945. UNC Press Books.
DOI: http://dx.doi.org/10.61426/sjbcm.v6i1.1067
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.