Effect of logistics management systems on the relationship between urban logistics and supply chain peformance of selected e-commerce firms in Nairobi

Abstract

Supply chain performance is a critical determinant of an organization's overall efficiency, competitiveness, and customer satisfaction. The study sought to determine the moderation effect of logistics management systems on the relationship between urban logistics and supply chain performance for e-commerce firms. The study specifically sought to determine the effects of urban demand, urban freight distribution and accessibility on supply chain performance, and the moderating effect of logistics management systems on each of the relationships. Explanatory research design was used, where Primary data were collected using questionnaires from a sample size of 281 respondents. Correlation results indicate that urban demand, urban freight distribution and accessibility are positively and significantly correlated to supply chain performance. Regression results indicate that urban demand (β=0.218, p<0.05), urban freight distribution (β=0.169, p<0.05) and Accessibility (β=0.123, p<0.05) are significant and positively related to supply chain performance. The conditional effect regression results indicate that logistics management systems moderate the relationship between; urban demand (β=0.03, ΔR2=0.001, p<0.05), urban freight distribution (β=0.10, ΔR2=0.009, p<0.05), and accessibility (β=0.04, ΔR2=0.002, p<0.05) on supply chain performance. To optimize performance, e-commerce firms should invest in technology to capture data on customer backgrounds, demands, and preferences, enabling them to understand and satisfy customer expectations.