Influence of logistic capabilities on the performance of event management firms in Nairobi County, Kenya

Abstract

The event management industry is vital to Kenya’s service sector, especially in Nairobi County, where weddings, conferences, corporate activations, and public events generate substantial demand for coordinated services. As competition grows, firms rely heavily on logistics to deliver quality services timely vendor coordination, equipment movement, venue setup/teardown, and just-in-time information sharing. However, little research has examined how logistics capabilities affect firm performance in Kenya, leaving managers with limited evidence to guide investments in systems, skills, and processes. This study examines how logistics capabilities shape the performance of event management firms in Nairobi County. The specific objectives were to assess the effects of logistics innovation, logistics service quality, logistics information integration, and operational capabilities on firm performance in Nairobi County. This study was guided by the dynamic capabilities framework and the resource-based view theory, which together emphasize how firms sense opportunities, reconfigure resources, and deploy distinctive capabilities to achieve superior performance. The study employed explanatory and descriptive research designs to both characterize current practice and model cause–effect relationships between logistics capabilities and firm outcomes. The target population comprised 411 registered event management firms, out of which 203 event managers formed the sample size. Data was obtained using questionnaires geared to capture capability maturity and perceived performance, and systematic random sampling was used to select respondents to enhance representativeness while minimizing selection bias. Regression results indicated strong explanatory power: innovation (R2 = 0.504; β = 0.451), service (R2 = 0.385; β = 0.267), and information integration (R2 = 0.485; β = 0.707) showed positive, statistically significant effects, while operational capability (R2 = 0.969; β = 0.127) was significant as an independent variable, but was comparatively weaker and not consistently robust in the combined model (β = 0.085). Information integration capability exhibits the most substantial impact on firm performance, emphasizing the centrality of efficient information management processes such as real-time coordination, interoperable tools, and accurate data sharing across partners. Innovation and service capabilities also contribute significantly by enabling new solutions, personalization, reliability, and rapid problem solving; whereas operational capability, despite its significance in routine execution, exerts a comparatively lesser influence without complementary information and service enhancements. The study concludes that logistic capabilities have a significant positive effect on the performance of event management firms in Nairobi County. Limitations include the cross-sectional, self-reported design and a focus on Nairobi County; future studies should employ longitudinal or mixed-method approaches, incorporate objective performance metrics, and test generalizability across counties and market segments. The study recommends that event management firms prioritize information integration and innovation, supported by advanced systems and a culture of creativity. Additionally, they should enhance service delivery through personalization, and improve operational efficiency across all capabilities to sustain competitive advantage and consistently meet client expectations in a fast-moving market.