The Relationship between Communication Technologies and Performance of Shipping Lines in Kenya: The Moderating Effect of International Maritime Regulations

Abstract

Proper implementation and use of technology are reputed to offer a major capability in enhancing a firm’s achievement of its goals. The maritime sector in Kenya, more so shipping, has been experiencing low logistics efficiency, which is usually characterized by poor track and trace, high transportation costs, customs clearance, and delayed delivery.  The performance of these firms, much as the rest of organizations’ performance, is greatly dependent on the adoption and use of the requisite technology. The purpose of the study was to assess the relationship between communication technologies and the performance of shipping lines in Kenya as moderated by international maritime regulations. The study was anchored on Technology Acceptance Model, Institutional Theory and Task Technology Fit Theory. The explanatory survey research design was utilized. Positivist research philosophy was employed in this study to create a practical solution to the problem bedevilling this sector, such as dismal performance. 2835 respondents formed the target population for this study and were drawn from the Sales and Marketing, Logistics, Finance and IT staff of the 53 shipping lines listed in Kenya business directory 2021. 438 respondents formed the appropriate sample size for the research study, which included: 103 Finance staff, 109 logistics staff, 130 sales and marketing staff, and 96 IT staff. In order to arrive at a specific respondent, a random stratified sampling design was used. The required data for research was gathered through self-administered structured questionnaires. In order to check the reliability and validity of the research instrument, a pilot study was done in 6 shipping lines from Mombasa, and 44 questionnaires, which formed 10% of the target population, were administered. Reliability was ascertained by the use of Cronbach’s alpha index at 0.7, while validity was checked through KMO Bartlett’s test and factor analysis. Quantitative data was analyzed using SPSS version 20 after being well-coded. Descriptive statistics and inferential statistics (Pearson correlation coefficient, multiple linear regression and hierarchical regression model) were generated and presented in tables and graphs. The research findings indicated the existence of a direct and positive association between the use of Communication technologies and shipping lines’ performance. The study further indicated that the moderating variable positively influenced the relationship between Communication technologies. The study concluded that shipping lines should invest more in communication technologies to improve their performance.