Influence of Outbound Logistics Strategies on the Competitive Advantage of Automotive Companies in Kenya

Abstract

Automotive companies need to improve the efficiency of their supply chains to maintain a competitive advantage. Ensuring efficient logistics management processes can contribute to sustainable competitive advantage. This study sought to determine the influence of outbound logistics strategies on the competitive advantage of Kenya's automotive companies. The study used an explanatory research design. The target population was 400 members of the top management team, including CEOs, functional managers, and senior managers drawn from 63 companies in the automotive industry in Kenya. The study utilized a census to include all 400 top management team members in the 63 automotive companies. Questionnaires were used in data collection. The hypothesis was tested using multiple linear regression analyses. Findings showed that outbound logistics strategies explain 38.3% of the variance in the competitive advantage of automotive companies in Kenya (R squared = 0.383). The findings further indicate that outbound logistics strategies had a statistically significant and positive influence on the competitive advantage of automotive companies in Kenya (β = 0.619, t = 14.682, p < 0.05). The study concluded that outbound logistic strategies such as timely order processing, efficient transportation systems, tracking delivery lead times, and logistics partner relationships were instrumental towards the competitive advantage of automotive companies in Kenya.