The Relationship Between Localization Technology and Performance of Shipping Lines in Kenya: The Moderating Effect of International Maritime Regulations

  • Nancy M. Njeri School of Business and Economics, Kisii University P.O. Box 408 – 40200, Kisii, Kenya
  • Enock Musau School of Business and Economics, Kisii University P.O. Box 408 – 40200, Kisii, Kenya
  • Richard B. Nyaoga Faculty of Commerce, Egerton University P.O. Box 13357 – 20100, Nakuru, Kenya
  • Christopher Ngacho School of Business and Economics, Kisii University P.O. Box 408 – 40200, Kisii, Kenya
Keywords: Localization technology, shipping lines companies, reliability, Factor analysis, Performance, international maritime regulations.


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.


Aboelmaged, M. (2010) Predicting e-procurement adoption in a developing country: An empirical integration on TAM and theory of reasoned behaviour Industrial management and data systems 110 (3) 392-414

Anshadh, A& Mahesh, S. (2014) PSU employees acceptance of e-procurement based on revised TAM International journal of scientific and engineering research 5 (7)

Aramyan, L. H., Oude Lansink, A. G., Van Der Vorst, J. G., & Van Kooten, O. (2007). Performance measurement in agri‐food supply chains: a case study. Supply chain management: an international Journal, 12(4), 304-315.

Atieno, E. O. (2014) Information and communication technology and supply chain performance among logistics firms in Nairobi unpublished thesis

Barros, P. A., Ishikiriyama, C. S., Peres, C. R. & Gomes, S. F.(2015) Processes and benefits of the application of information technology in supply chain management: an analysis of literature. Science direct procedia computer science 55,698-705.

Bolte, N. O & Goll, D. C. (2020) Potential analysis of the track and trace systems in the outbound logistics of a Swedish retailer. Unpublished thesis Jonkoping University

Brandon, J. S. & Kauppi, K. (2018) Examining the antecedents of TAM within e-procurement international journal of operation and production management 38 (1) 22-42.

Cheptora, N. C., Osoro, A.,& Musau, E. (2018). The impact of information communication technology on procurement performance in manufacturing firms in Kenya. International journal of academic research in business and social science, 8(9)605-616

Davis, F. D. (1989), ‘’perceived usefulness, perceived ease of use, and user acceptance of information technology”, MIS Quarterly, 13 (3): 319-340.

Fugate, B. S. Mentzer, J. T. & Stank, T. P. (2010) Logistics performance: efficiency effectiveness and differentiation. Journal of business logistics 31: 43-61

Gacuru, W., & Kabare, K. (2015). Factors affecting efficiency in logistics performance of trading and distribution firms based in Jomo Kenyatta International Airport area. International Academic Journal of Procurement and Supply Chain Management, 1(5), 50-71.

Goodhue, D. L., & Thompson, R. L. (1995). Task-technology fit and individual performance. MIS quarterly, 213-236.

Gwaro, T. M. (2011). Logistics innovations in the road transport sector in Kenya (Doctoral dissertation).

Harris, I., Wang, Y., & Wang, H. (2015). ICT in multimodal transport and technological trends: Unleashing potential for the future. International Journal of Production Economics, 159, 88-103.

Irick, M. L. (2008). Task-technology fit and information systems effectiveness. Journal of Knowledge Management Practice, 9(3), 1-5.

Jonker, W. (2016). The Impact of Implementing a Vehicle Tracking System within a South African Ferrochrome Smelter Supply Chain. University of Johannesburg (South Africa).

Kabiru, V. N.(2016) Electronic Cargo Tracking Systems and Operational performance at Kenya Revenue Authority and on transporters

Karia, N. & Wong, C. Y. (2013) The impact of logistics resources on the performance of Malaysian logistics service providers. Production, planning and control 24(7) 589-606.

Karibo, B. B. (2019). Logistics management from firm’s performance perspective. European journal of logistics, purchasing and supply chain management,7(1) 12-28

Kento, W(2020) international maritime organization. Investopedia. Economy> Government and policy
Kenya Shippers Association report 2016 on Logistics efficiency

Kilonzi, F., & Kanai, C. K. (2020). Electronic Cargo Tracking System and Its Effects On Revenue Realization in East Africa Member Countries. International Journal of Scientific and Research Publications, 10(1).

Kombo, M. K. (2018). Advancing Security in East Africa Coastal Region Through Maritime Strategy: Case of Kenya (Doctoral dissertation, University of Nairobi).

Lukhoba, M. J. (2014). Cargo Tracking System as a Competitive Strategy in Service Delivery (Doctoral dissertation, University Of Nairobi).

Macharia, N. M., Iravo, M., Tirimba, I. O. & Ombui, K. (2015). Effects of information technology on performance of logistics firms in Nairobi County. International Journal of Scientific and Research Publications, 5(4).

Maina, J. W. (2017). Factors affecting the financial performance of shipping lines in Kenya strategic journal of business and change management 4 (4)

Maxwell, J. A. (2013). Qualitative research design: An interactive approach (applied social research methods) (p. 232). Thousand Oaks, CA: Sage.

Michaelides, R., Michaelides, Z., & Nicolaou, D. I. M. I. T. R. I. O. S. (2010). Optimisation of logistics operations using GPS technology solutions: a case study. In of the twenty first annual POMS conference, Paper (No. 015-0822).

Mugambi, N. (2017). Effect of cargo tracking system on cross-border trade between Kenya and Uganda (Doctoral dissertation, University of Nairobi).

Mugenda, O., & Mugenda, P. (2013). Qualitative and quantitative research methods. ACTS, Kenya.

Musa, H., Azmi, F. R., Shibghatullah, A. S., Asmala, A., & Abas, Z. A. (2017). The implementation of global positioning system (GPS) towards logistic service provider (LSP). Proceedings of Mechanical Engineering Research Day, 2017, 250-251.

Mwashigadi, D. M. (2014). Factors influencing effectiveness in the execution of mandate of state regulatory and enforcement agencies within maritime trade in Kenya (Doctoral dissertation, University of Nairobi).

Ndonye, S. K. (2014). Influence of information technology on logistics performance in Kenya with reference to cargo transportation. Journal of Supply Chain Management, 1(2), 1-18.

Njagi, L. K., Namusonge, G. S & Mugambi, F. (2016) Effects of strategic management determinants on firm performance in the shipping industry in Kenya Global journal of commerce and management perspective 5 (5): 14-26

Nyema, S. M. (2014). Factors influencing container terminals efficiency: A case study of Mombasa entry port. European Journal of Logistics Purchasing and Supply Chain Management, 2(3), 39-78.

Nyongesa, E. (2018). Influence Of Regional Electronic Cargo Tracking System On Management Of Transit Goods In Kenya: A Case Of Kenya Revenue Authority Customs Department (Doctoral dissertation, University of Nairobi).

Onyemejor, V. I. (2015). Relationship between maritime logistics performance and international trade competitiveness: A case of Nigeria in central western African cluster of countries, unpublished thesis from world maritime university.

Oraith, H. M. (2020). Human Factor Risk Management for Maritime Pilotage Operations. Liverpool John Moores University (United Kingdom).

Oyebamiji F. (2018). Information technology and its effect on performance of logistics firms in Nigeria. Asian Research Journal of Arts & Social Sciences, 6(1), 1-11.
performance in Tanzania: A case of Dar Es Salam port. Unpublished thesis of the open university of Tanzania

Rodrigue, J. P., & Notteboom, T. (2017). Inland Ports/Dry Ports. Rodrigue, JP., Comtois, C., Slack, B. The Geography of Transport Systems. Fourth edition, New York: Routledge.

Ruto, W. K. (2014). Logistical Factors Influencing Port Performance A Case of Kenya Ports Authority. International Journal of Advanced Research, 2(10), 558-562.

Sadovaya, E. & Thai, V. (2015). Impacts of implementation of the Effective Maritime Security Management Model (EMSMM) on organizational performance of shipping companies. The Asian journal of shipping and logistics,31 (2) 195-215

Scott, W. R. (2004). Institutional theory. Encyclopedia of social theory, 11, 408-414.

Shamsuzzoha, A.., Ehrs, M., Addo-Tenkorang, R. & Helo, P (2021) Tracking and tracing of global supply chain Network: A case study from Finnish company. Proceedings of the 23rd international conference on enterprise information systems 1: 118-125

Toyli, J., Hakkinen, L., Ojala, L. & Naula, T. (2008) logistics and financial performance: An analysis of 424 Finnish Small and medium enterprises. International journal of physical distribution and logistics management 38:57-80

UNCTAD review on maritime transport (2020)

William, I. (2006). Against the Skeptical Argument and the Absence Thesis: African Jurisprudence and the Challenge of Positivist Historiography. The Journal of Philosophy, Science & Law, 6(2), 9-24.

Yamane, T.(1967) Statistics; An introductory Analysis, 2nd Edition, New York Harper and Raw.

Zikomo, M. (2016). Analysis on the effects of cargo handling factors to port

Zucker,L 91996) the institutionalization of institutional theory. www semantic
How to Cite
Njeri, N., Musau, E., Nyaoga, R., & Ngacho, C. (2023, June 5). The Relationship Between Localization Technology and Performance of Shipping Lines in Kenya: The Moderating Effect of International Maritime Regulations. African Journal of Education,Science and Technology, 7(3), Pg 596-614.