Logistics Management Practices and Competitive Advantage in Clearing and Forwarding Firms : A Case of Morgan Cargo, A Kuehne+Nagel Company

Abstract

It is important for companies to adapt logistics management practices inorder to achieve sustainable competitive advantage. Kenyan clearing and forwarding firms are facing a persistent decline in their competitive edge,due to regulatory challenges, intense pricing competition, and the growing presence of technologically advanced multinational logistics companies. There is lack of empirical evidence as much as some studies have explored competitiveness in the logistics sector and how specific logistics management practices influence the competitive positioning of local firms within the unique context of Kenya's evolving business environment.This study sought to bridge the contextual, conceptual, and methodological gaps among clearing and forwarding firms, with a focus on Morgan Cargo. The study focused on examining the logistics management practices employed by Morgan Cargo, evaluating its competitive advantage, investigating the effects of these practices on its competitive position, and assessing the moderating role of government policies in the study.Additionally,it explored how specific logistics management practices contribute to competitive advantage while adopting a mixed-methods approach to incorporate qualitative insights into strategic decision-making.The Competitive Advantage, Supply Chain management, and Resource-based View theories formed the theoretical framework.An explanatory research design with mixed-methods and quantitative and qualitative data was collected using structured questionnaires and in-depth interviews.250 employees of Morgan Cargo Limited is the target population.Stratified random Sampling was adopted and a sample of 150 participants was drawn. A pretest was conducted using a sample of 10% respondents, totaling 15 participants to refine the research instruments, while validity and reliability tests ensured data accuracy and consistency. Construct and content validity were applied, and Cronbach’s α coefficient was used to assess internal consistency, with an α value above 0.70 considered acceptable.Descriptive statistics such as frequency distribution tables ,standard deviation, mean ,inferential statistics such as regression analysis was utilized for quantitative data analysis.Thematic content analysis and open coding was used to analyze qualitative data from interview responses. The study revealed that Morgan Cargo use of key logistics management practices;customs modernization, warehouse management, inventory and supply chain management ,significantly contributes to it’s competitive edge by enhancing customer satisfaction ,operational efficiency and delivery performance.Government regulations were shown to moderate this relationship by influencing how effectively these practices translate into strategic market positioning. The study concludes that effective logistics management practices are essential in strengthening Morgan Cargo’s competitive advantage.It recommends that the company adopts customs modernization while sustaining investments in customer-centric strategies such as strategic market positioning,service differentiation and customer fulfillment .