OUTSOURCING AND PERFORMANCE OF LOGISTICS FIRMS IN KENYA – A CASE STUDY OF KUEHNE + NAGEL LIMITED

Abstract

The main objective of this research study was to investigate influence of organizational practices on performance of logistics firms in Kenya. The specific objective was to examine the effect of outsourcing on performance of logistic firms in Kenya. This study was founded using resource-based view and planned behavior theory. The study target population was 326 Kuehne + Nagel Limited employees working in Nairobi, Kenya. This study adopted survey research design. The study adopted stratified random sampling techniques. A 25% sample size was selected. This study used questionnaires to gather data. A pilot test was performed using five questionnaires. The collected data was scrutinized, coded, classified and systematically keyed in SPSS version 22.0 software for generation of data table and charts. The analysis incorporated both descriptive and inferential statistics. As ethical consideration, all work of authors used was acknowledged. The results indicate correlation r equal 0.217 for outsourcing. This indicates positive relationship between outsourcing and performance of logistics firms in Kenya. The study recommends logistics firms operating in Kenya should deliberate and identify areas or functions in the management that are suitable for outsourcing such as cleaning, cooking, and among others to enable them fully to concentrate in core mandates thus net more clients and improve sales and profits. This study would benefit Kuehne + Nagel Limited and other logistic firms in Kenya to improve their logistical activities as well as future researchers as source of reference and citations. Keywords: Organizational practices, Outsourcing, Performance, Logistics firms, Outsourcing, Kenya, Kuehne + Nagel Limited