The relationship between localization technology and performance of shipping lines in Kenya: The moderating effect of international maritime regulations

Abstract

Technology has been highly rated as a key enabler of improving organizational performance. Kenya’s shipping industry experiences low logistics efficiency characterised by high transportation cost, delayed delivery, poor track and trace as well as customs clearance. Shipping lines’ performance just like any other organisation’s performance is highly pegged on proper implementation and use of the right technology. The localization technologies if well utilised can help to solve these problems. The objective of this study therefore, was to examine the relationship between localization technology and performance of shipping lines in Kenya, the moderating effect of international maritime regulations. The study was anchored on technology acceptance model as well as the task technology fit theory, institutional theory and theory of firm. The study made use of positivist research philosophy as it sought to come up a practical solution to the existing problem of poor performance among the shipping lines. The explanatory survey research design was utilized in this study. The target population was all the 2835 respondents who are logistics, IT, sales and marketing and finance staff of the 53 shipping lines listed in Kenya business directory 2021. The sample size of 438 respondents who are staff from different departments of these firms namely; logistics 109 staff, IT 96 staff, finance 103 staff, sales and marketing 130 staff were determined using the Yamane formula. Random stratified sampling design was utilized to arrive at specific respondents. Quantitative data was collected using structured questionnaires administered to the respondents. A pilot study was conducted in in 6 shipping lines from Mombasa using the 10% of the sample size; 50 questionnaires but only 44 were filled and returned. The questionnaire was tested for both validity and reliability. Reliability was tested using Cronbach alpha index at 0.7 while validity was ascertained through factor analysis. Quantitative data was appropriately coded and entered into SPSS version 20 for analysis in order to generate descriptive statistics (minimum, maximum, mean, standard deviation and frequency percentage) and inferential statistics (Pearson correlation coefficient, multiple linear regression and hierarchical regression model) which was then be presented in frequency tables and graphs. Results showed that there was a significant and positive relationship between localization technology and performance of shipping lines in Kenya. Also, international maritime regulations had no statistically significant moderating effect on the relationship between localization technology and performance of shipping lines in Kenya. It was concluded that shipping lines in Kenya utilized localization technology to help the in locating cargo during transportation, forecasting lead time accurately, mapping the route, eliminating delay, checking route deviation and tracking vessels. The study recommends that in order to enhance shipping lines performance through efficient operations, the managers of these companies need to adopt and make use of the localization technology.