Abstract

Logistics companies suffer from inefficiency and insecurity in order to guarantee their profitability and growth. This has prompted integration of new technology into their operations through automation adopted by the customs department under Kenya Revenue Authority. This is to improve supply chain agility, power up operations, reduce cycle time, achieve higher efficiency and deliver products on time and reduce operations costs. From the selection of information, sorting of information, strengthening custom’s protection of consumers from counterfeit products to the real-time tracking of cargo, it is becoming a requirement to use new technologies to meet customer service expectations and raise the productivity of the workforce. This study sought to investigate the effect of new technology adopted by customs on logistics performance in Nairobi. The specific objectives were to determine the effect of the adoption of the single window system, cargo scanner management system, and electronic cargo tracking system on logistics performance. Resource advantage theory of competition, task technology fit theory and instrumental theory of technology are the theories that guide the study. It adopted an explanatory research design. The target population were 300 customs officers and managers of logistic companies within Nairobi. A sample of 171 customs officers and logistics managers were selected using stratified random sampling technique. Data was collected using structured questionnaire. The descriptive and inferential statistical analysis techniques were employed by the study. To investigate the relationship between the independent variables and dependent variable, correlation and multiple regression analysis was used. Correlation analysis established the strength of linear association between the variables. On the other hand, a multiple linear regression model tested the significance of the influence of the independent variables on the dependent variable. Findings revealed that single window system (β=0.389, p=0.000), electronic cargo tracking management systems (β=0.268, p=0.000) and cargo scanner management solution (β=0.330, p=0.000) have a positive and significant effect on the logistics performance of transport operators. The study concluded that single window system, electronic cargo tracking management systems and cargo scanner management system contribute significantly to increase in logistics performance. The study recommended that customs department needs to constantly update its information technology infrastructure to incorporate the latest artificial intelligence software. This helps in speeding up the tracking systems and providing real time and reliable information. The study likewise recommends the adoption of e-government standards and in particular of standardized e-customs solutions as well as political and societal impact of e-customs policies. The customs department officials, logistics companies, and technological providers need to scale up their collaborative activities in advancing the application of single window system, electronic cargo tracking management systems and cargo scanner management system in supply chains for better performance of logistics.