THE INFLUENCE OF THE MODERATING ROLE OF LOGISTICS INFORMATION SYSTEMS ON THE RELATIONSHIP BETWEEN LOGISTICS MANAGEMENT PRACTICES AND CUSTOMER SATISFACTION OF SHIPPERS IN KENYA

Abstract

The objective of this study was to establish the effect of Logistics Information Systems
(LISs) on the relationship between Logistics Management Practices (LMPs) and
customer satisfaction of shippers in Kenya. A hypothesis was formulated to achieve this
objective which was: LISs has no significant moderating effect on the relationship
between LMPs and customer satisfaction. The positivism philosophical foundation and
descriptive cross-sectional research design were adopted. The study was a census,
undertaken on all the 63 importers and exporters who were members of Shippers
Council of Eastern Africa (SCEA), which was used as the sampling frame. Primary data
was collected from senior managers in the logistics departments of the shippers.
Reliability and validity tests, together with some diagnostics tests were conducted, and
the data was found to be in line with requirements of linear regression. The hierarchical
regression model by Baron and Kenny (1986) was used to test the moderating effect of
LISs. The study found that the relationship between LMPs and customer satisfaction
was not moderated by LISs. The study further found that the shippers in Kenya were
more concerned with the benefits accrued from the LISs than the type implemented.
The Material Flow (MF) theory, Expectancy Disconfirmation Theory (EDT) and
network design theory were the theories anchoring the study. The study contributed to
knowledge, policy and practice in the logistics management sector, shippers’ advocacy
bodies, especially SCEA, government agencies and future researchers will find this
study relevant for reference.. The Chartered Institute of Logistics and Transportation
(CILT) will find this study relevant as it is the professional body of logistics
management.
Key words: Logistics management practices, Logistics information systems, Customer
satisfaction, Shippers in Kenya, Material Flow Theory