Effect of new technology adoption on logistics performance of transport operators at Inland Container Depot Nairobi
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Date
2021
Authors
Ndwiga, Caroline Murugi
Dr. Nekesa, Marion
Dr. Kimwolo, Andrew
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/Moi University
Abstract
Logistics companies suffer from inefficiency and insecurity in order to guarantee their
profitability and growth. This has prompted integration of new technology into their
operations through automation adopted by the customs department under Kenya
Revenue Authority. This is to improve supply chain agility, power up operations,
reduce cycle time, achieve higher efficiency and deliver products on time and reduce
operations costs. From the selection of information, sorting of information,
strengthening custom’s protection of consumers from counterfeit products to the real time tracking of cargo, it is becoming a requirement to use new technologies to meet
customer service expectations and raise the productivity of the workforce. This study
sought to investigate the effect of new technology adopted by customs on logistics
performance in Nairobi. The specific objectives were to determine the effect of the
adoption of the single window system, cargo scanner management system, and
electronic cargo tracking system on logistics performance. Resource advantage theory
of competition, task technology fit theory and instrumental theory of technology are
the theories that guide the study. It adopted an explanatory research design. The target
population were 300 customs officers and managers of logistic companies within
Nairobi. A sample of 171 customs officers and logistics managers were selected using
stratified random sampling technique. Data was collected using structured
questionnaire. The descriptive and inferential statistical analysis techniques were
employed by the study. To investigate the relationship between the independent
variables and dependent variable, correlation and multiple regression analysis was
used. Correlation analysis established the strength of linear association between the
variables. On the other hand, a multiple linear regression model tested the significance
of the influence of the independent variables on the dependent variable. Findings
revealed that single window system (β=0.389, p=0.000), electronic cargo tracking
management systems (β=0.268, p=0.000) and cargo scanner management solution
(β=0.330, p=0.000) have a positive and significant effect on the logistics performance
of transport operators. The study concluded that single window system, electronic
cargo tracking management systems and cargo scanner management system
contribute significantly to increase in logistics performance. The study recommended
that customs department needs to constantly update its information technology
infrastructure to incorporate the latest artificial intelligence software. This helps in
speeding up the tracking systems and providing real time and reliable information.
The study likewise recommends the adoption of e-government standards and in
particular of standardized e-customs solutions as well as political and societal impact
of e-customs policies. The customs department officials, logistics companies, and
technological providers need to scale up their collaborative activities in advancing the
application of single window system, electronic cargo tracking management systems
and cargo scanner management system in supply chains for better performance of
logistics.
Description
Keywords
ICD, Cargo Scanner Management System (CAMIS), Electronic Cargo Tracking System, Single-Window System