DETERMINANTS FOR GOVERNMENT TRADE POLICIES AND PERFORMANCE OF LOGISTIC FIRMS IN MOMBASA COUNTY, KENYA
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. There is decline in terms of service delivery and customer satisfaction. The study examined 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. 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 was employed to calculate a sample size, which was 120 respondents Questionnaires with open ended question was used to gather primary data. 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. 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.
Keyword: Government Policies, Logistic Firms, Supply Chain, Licensing Policy, Price Control, Taxation Policy, Tariffs Policy
CITATION: Chao, A. M., & Chege, P. (2023). Determinants for government trade policies and performance of logistic firms in Mombasa County, Kenya . The Strategic Journal of Business & Change Management, 10 (1), 560 – 575.
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DOI: http://dx.doi.org/10.61426/sjbcm.v10i1.2562
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