Analysis of Factors Affecting Logistic Performance Among Registered Freight and Forwarding Firms in Nairobi County, Kenya

Purpose: The general objective of the study was to establish the environmental factors affecting logistics performance among registered freight forwarding firms in Nairobi County, Kenya. The specific objectives comprised of examining the effect of the internal environment, external environment and firm size on the logistic performance of registered freight forwarding firms in Nairobi County, Kenya. Methodology: This study used a descriptive research design. The study targeted 1676 managing director and senior departmental level managers drawn from the registered freight and forwarding firms. Data was collected using questionnaires. The collected data was entered into SPSS 28 analytical tool where it was coded and analysed. Both descriptive and inferential analysis was applied. Findings: The findings showed that firm size had a positive and significant moderating effect on the relationship between environmental factors and performance of registered freight and forwarding firms in Nairobi County, Kenya. The study concludes that there is a positive and statistically significant relationship between internal environment factors and logistic performance. The study shows that while the structural aspects are important, the cultural and leadership elements play a more pivotal role in enhancing logistic performance. The study further concludes that external environment factors have a positive and significant effect on logistic performance. The study notes that infrastructure, policy and technology are crucial, but the potential benefits of technology may not be fully realized or uniformly adopted across the firms. The study also concludes that firms of all sizes can potentially achieve high logistic performance by focusing on effective resource utilization, strategic market analysis, and continuous development efforts. Unique Contribution to Theory, Policy and Practice: The study recommends that the policymakers should focus on simplifying documentation and customs procedures to reduce delays and improve the overall efficiency of logistic operations. The government should invest and increase support in research and development. The study also recommends that firms should establish clear communication policies that foster teamwork and engagement since encouraging participatory engagement and keeping employees informed of shared goals can spur productivity. Logistical firms should also invest in resources including human resource and financial resources. The firm should recruit and retain adequate and competent personnel to meet organizational goals as well as mobilize financial resources effectively to support investments in technology and infrastructure.