Logistics Innovation and Its Influence on Performance of Building and Construction Manufacturing Firms in Kenya

Abstract

Purpose: The study sought to assess the influence of logistics innovation on the performance of building and construction manufacturing companies in Kenya. This comes at a time when the world is facing climatic challenges and dynamics attributed to increased environmentally unfriendly practices which lead to increased emissions and pollution to the environment. As the companies are called to practice eco-friendly operations, logistics remains one area of focus, where most global leaders are investing in to ensure sustainability is embraced. However, this has not been effectively assessed on a local context. The study sought to establish the key logistics innovations that manufacturing companies can embrace to enhance performance. Methodology: The study adopted a descriptive research design approach. This method is preferred because it allows an in-depth study of the subject. The study population was 900 employees drawn from the 54 building and construction manufacturing firms in Kenya. The sample size was 270 respondents which was determined through purposive sampling targeting departments (production, quality assurance, procurement and supply chain, transport and logistics, and administration) in the 54 companies. Primary data was collected using a questionnaire. Quantitative data was analyzed through descriptive statistics and inferential statistics. Findings: The results revealed that logistics innovation significantly influenced the performance of the building and construction manufacturing firms in Kenya. The study concluded that through embrace of green logistics through logistics innovation, performance of the manufacturing firms was obtained. Unique Contribution to Theory, Policy and Practice: It is recommended that the management of the building and construction manufacturing firms embraces logistics innovation though use of solar technology, hybrid vehicles and tracks and reducing emissions in order to enhance sustainability and promote performance.