Cross-border logistics and shipping company performance in East Africa: Empirical evidence from Mombasa Port
Date
2025Author
Njuguna, Alice Wanjiru
Githae, Peter
Nyile, Erastus Kiswili
Metadata
Show full item recordAbstract
Purpose: This study examines the effect of crossborder logistics on shipping company performance in East
Africa, specifically investigating how customs clearance
efficiency, transportation management systems (TMS)
adoption, last-mile delivery optimization, and supply chain
coordination influence operational, financial, and market
performance of maritime logistics firms in Mombasa County,
Kenya. Methodology: The research employed a descriptive
survey design with stratified random sampling of 172 shipping
companies operating in Mombasa County. Data were collected
through structured questionnaires from 149 respondents
(86.63% response rate), yielding cross-sectional observations
of logistics practices and performance outcomes. Multiple linear
regression analysis examined the joint effects of independent
variables on performance, controlling for firm size, years of
operation, service scope, and customer profile. Results: All four
hypothesized relationships were confirmed statistically (p <
0.05). Supply chain coordination demonstrated the strongest
effect on performance (β = 0.458, standardized β = 0.338),
followed by transportation management systems (β = 0.412,
standardized β = 0.234), last-mile delivery optimization (β =
0.289, standardized β = 0.241), and customs clearance
efficiency (β = 0.186, standardized β = 0.182). The regression
model explained 77.2% of performance variance (R² = 0.772, F
= 52.34, p < 0.001), indicating that cross-border logistics
dimensions are critical performance determinants. However,
technology adoption barriers limit TMS implementation to
34.2% of firms, representing untapped performance
improvement opportunity. Theoretical Contribution: The study
contributes to the logistics and supply chain management
literature by providing firm-level empirical evidence on
determinants of cross-border logistics performance in SubArticle history:
Saharan Africa, where such research remains limited. The
integrated examination of multiple logistics dimensions reveals
performance interdependencies. The findings extend
institutional theory, the resource-based view, transaction cost
economics, and network theory by demonstrating their
complementary explanatory power in the context of logistics in
developing economies. The dominant effect of supply chain
coordination supports network theory predictions while
highlighting limitations of technology-centered approaches in
resource-constrained environments. Practical Implications: For
shipping company executives, the research provides evidencebased guidance for strategic logistics investments, emphasizing
that supply chain coordination and relationship development
can yield higher returns than technology adoption alone. For
policymakers, the findings support prioritizing customs reform,
technology infrastructure investment, and regional
harmonization within the East African Community and the
African Continental Free Trade Area. For industry associations,
the research identifies skills gaps in logistics management
requiring capacity-building initiatives and suggests that
collaborative problem-solving forums addressing interorganizational coordination challenges would benefit industry
competitiveness
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- Journal Articles (BE) [391]
