Abstract:
In the recent past, there has been an upsurge in voluminous trade at the East African Ports
and more so the Mombasa port of Kenya. The voluminous trade eminent is due to the
strategic repositioning of the Mombasa port as a gateway to other East and Central African
Countries: Uganda, Rwanda, Burundi, Eastern Democratic Republic of Congo, South
Sudan, Ethiopia and North Eastern Tanzania. The ability of Mombasa port of Kenya to
handle cargo has been attributed to expansion of the warehousing area for its operations.
The objective of the study was evaluation of warehouse management practices on
organizational performance of logistical firms in Mombasa. The specific objectives for the
study were; to investigate the effect of receiving process of goods on organizational
performance, to determine the effect of tracking of goods to and from the warehouse on
organizational performance, to investigate the effect of physical storage facilities on
organizational performance and to determine the effect of order processing on
organizational performance. The theories encompassed in the study included channel
coordination theory, theory of constraints and revealed preference theory which relates to
logistical management in organizational performance. The study adopted a descriptive
research design and collected data using a structured questionnaire from 219 (96.1%) out
of a sample 228 respondents. The sample was drawn using stratified random sampling from
the management personnel of firms involved in logistics operations in the port Mombasa.
The data collected was analyzed using both descriptive and inferential statistics.
Descriptive analysis was conducted using frequencies, percentages, mean and standard
deviation to summarize the results for the various variables of the study and the results will
be presented in tables and figures. Inferential analysis was conducted using Pearson
correlation and multiple regression model to test the relationship between the independent
variables and the dependent variable at the level of significance of alpha=0.05. Descriptive
results indicated that the respondents agreed that receiving process of goods, tracking of
goods, physical storage facilities and order processing had improved the organizational
performance of logistical firms in Mombasa. Pearson’s correlation results indicated that
tracking of goods (r = .715, p < .01), physical storage facilities (r = .741, p < .01) and order
processing (r = .829, p < .01) had a significant and high positive correlation with
organizational performance. The results also indicate that receiving process of goods (r =
.638, p < .01) had a significant and moderate positive correlation with organizational
performance. Additionally, multiple regression results indicated that receiving process of
orders (β = .519, p < .01), tracking of goods (β = .618, p < .01), physical storage facilities
(β = .741, p < .01) and order processing (β = .820, p < .01) had significant and positive
influence on organizational performance of logistical firms in Mombasa. The study
concluded that receiving process of goods, tracking of goods, physical storage facilities and
order processing had statistically significant and positive effect on organizational
performance of logistical firms in Mombasa. The study recommends that the management
of logistical firms in Mombasa should consider enhancing their warehouse management
practices by improving on receiving process of goods, tracking of goods, physical storage
facilities and order processing in order to improve on the organizational performance. The
study also recommends that the National Government through the Ministry of Industry,
Trade and Co-operatives and the Kenya Ports Authority should improve on the existing
policy and regulatory framework to ensure effective warehouse management practices
among logistical firms in the country in order to improve logistical processes and activities
in the country. Finally, the study suggests that further studies should be conducted focusing
on other factors influencing organizational performance of logistical firms.