INFLUENCE OF BLOCKCHAIN TECHNOLOGY ON PERFORMANCE OF LOGISTICS FIRMS IN KENYA

Abstract

The main objective of the study was to establish the influence of blockchain technology on performance of logistics firms in Kenya. The study specifically aimed to determine the influence of Supply chain integration, determine the influence of inventory management systems, establish the influence of information sharing and to identify the influence of transactions security on performance of logistics firms in Kenya. The study was undertaken in 6 logistics firms situated in Nairobi. The study adopted a descriptive research design and the target population was a total of 396 logistics management staff from 6 of the selected logistics firms. The study adopted a stratified sampling technique to select a total of 202 respondents. Questionnaires were used as the main data collection instruments and a pilot study was conducted to pretest questionnaires for reliability. Descriptive statistics and multiple regression analysis were used to analyze the gathered data and the results were presented on tables and charts. Findings from the study showed that Supply chain integration; inventory management costs; information sharing and transaction security influences the performance of logistics firms in Kenya. The study concluded that block chain technology influences the performance of logistics firms through enhancing supply chain integration; reduction of inventory management costs; increased effectiveness in information sharing and improving transaction security across the supply chain players. The study recommended that the management of logistics firm should adopt blockchain technology in the execution of all supply chain integration functions. The study also recommended that management of logistics firms should effectively integrate blockchain technology in all inventory management functions, transaction processes and continuously update effective transaction security systems in order to safeguard confidential transaction information that is processed through the use of block chain technology.   Key words: Supply Chain Integration, inventory management systems, Information Sharing, Transactions Security, block chain technology, Logistics Firms in Kenya   CITATION: Mung’asio, K. K., & Moronge, M. (2019). Influence of blockchain technology on performance of logistics firms in Kenya. The Strategic Journal of Business & Change Management, 6 (2), 265 – 285.