AbstractPurpose: The main objective of the study was to determine the effect of strategic planning on the financial performance of small ICT companies in Nairobi County.Methodology: The descriptive research design was adopted in the study. A total of 584 small ICT companies based in Nairobi County formed the target population. The researcher grouped the population into strata according to their years in operation. Due to time and resource constraints, it was not possible to study the entire population. A sample of 232 small ICT companies was therefore selected from the target population to participate in the study.
Impact Of Information Technology On Logistics
Respondents consisted of one member from the top management of each company in the sample. The main data collection instrument was questionnaires. The questionnaires were distributed to the respondents. Respondents were expected to complete the questionnaires within a period of two weeks, after which the researcher personally collected them. Data collected was analyzed using SPSS.
To determine the effect of the four independent variables on the dependent variable, multiple regression was applied. Tables and charts were used to present the results of the study.Results: From the results, strategic planning in the confines of environmental scanning, formality, time horizon and evaluation was found to have a significant effect on financial performance, collectively accounting for 60% for the changes in the financial performance of small ICT companies. An ANOVA test revealed that environmental scanning, formality and evaluation have a significant effect on the financial performance of small ICT companies. Time horizon was however found to have no significant effect on financial performance of small ICT companies. The study therefore concluded that strategic planning has a positive effect on the financial performance of small ICT companies in Nairobi County.Unique Contribution to Theory, Practice and Policy: The study recommends that there is need for the government, policy makers and regulators to provide regular information and insight into the ICT sector. This information can be beneficial in understanding the contribution of the sector, services on demand, service providers, technologies, the state of competition, compliance requirements and regulations.
This study investigated the role of information systems usage in enhancing port logistics performance using the port of Dar es Salaam, Tanzania, as an example. Specifically, the study examined the role of information systems usage in contributing to reducing shipping and trucking costs, improving on-time delivery of goods and services, increasing trade volume, and enhancing organisational logistics capability. The study employed a quantitative approach, with questionnaires deployed to gather data about information systems usage and the attendant effects. The reliability was measured using Cronbach’s alpha. A canonical correlation analysis was performed to estimate the relationship of information systems usage to the port logistics performance.
The study established that relationships exist between information systems usage and the perceived decrease in shipping and trucking costs, timely delivery of goods and services, perceived increase in trade volume, and enhanced organisational logistics capability. Based on these findings, the study recommends that ports consider building the capacity of their employees to utilise and manage information systems much more effectively and efficiently to increase the port’s performance. Background of the research problemWorld trade, in our increasingly globalised and networked economy, depends on the rapid and timely transportation of goods from manufacturing places to market areas (Gidado ). In this regard, port activities and transportation network operations are inseparable, as good performance of the port is linked to its information systems usage (Wilson et al.
Port congestion in Africa is an inevitable seasonal occurrence that is largely associated with improper planning and inadequate equipment or infrastructure that could otherwise support the transport and logistics network African ports need. Information systems constitute one of the solutions for addressing the challenges that occur in many processes that are important for the economic development of a nation (Pierson and Harner ). Information systems collect, supply, arrange, and use information to ensure the efficiency and effectiveness of an organisation’s operations (Pierson and Harner ).
According to Nowduri ( ), information systems enable management to quickly make decisions about different issues in the organisation. These information systems have become important in logistics service (Salin ) and entail a significant tool to reduce costs and effectively serve clients through better customisation of the service provided (Salin ). The basic purpose of any information system is to help its users obtain a certain type of value from the information in the systems, regardless of the types of information stored or desired value type.
The integration of information systems in logistics has contributed to competitive supply chains that accord certain companies competitive edges in the market, with new methods implemented to prevent any inherent danger and loss of life (Weiss ).Dar es Salaam port, owned by the Tanzania Ports Authority, is Tanzania’s principal port, with a rated capacity of 4.1 million tonnes dry cargo and 6.0 million tonnes bulk liquid cargo (Tanzania Ports Authority ). Improved efficiency at the port can translate into additional tonnage of imports and exports. In fact, the volume of cargo has continued to record an upward trend, partly due to an increase in the use of information systems. The port handles almost all of Tanzania’s international trade cargo and serves its landlocked neighbouring countries of Malawi, Zambia, the Democratic Republic of the Congo, Burundi, Rwanda and Uganda. These countries are connected to the port through two railway systems and road networks, in addition to a pipeline in the case of Zambia.However, the delay in cargo clearance and the resultant congestion at the port of Dar es Salaam has become a matter of serious concern to all users of the port (Raballand et al., Daudi, Kunaka et al. As Dar es Salaam is a major port that serves neighbouring land-locked countries, the Tanzania Ports Authority management should ensure that port services satisfy regional customer needs, as congestion at the port results in the port losing a high percentage of its potential income. Potential income could come from Kenya, Uganda, South Sudan, the Democratic Republic of Congo, Zambia, Malawi, Mozambique, and even Zimbabwe.
The changing business environment and globalisation continued to expose the port of Dar es Salaam to stiff competition, especially with the port of Mombasa in the north for cargo originating from and destined to Uganda, Rwanda, the Democratic Republic of Congo (Kivu Province), the northern part of Tanzania and South Sudan. To its south, Dar es Salaam port competes with the Mozambican ports of Nacala, Beira and Maputo and the South African port of Durban for Zambia, Malawi and the Democratic Republic of Congo (Katanga Province) cargo. In the west, it competes with the Namibian port of Walvis Bay and the Angolan port of Lobito for traffic with Zambia and the Democratic Republic of Congo (Katanga Province).Overall, the application of information systems at a given port should facilitate process management and control of the flow of work, data interface to minimise the recapture of data (both within the organisation and with third parties), data validation to prevent the costs of rework, performance measurement to manage the activities undertaken and compliance with local regulatory requirements (Weiss ). Therefore, information systems in ports hold the potential for significant progress, particularly in business management and public administration, by harmonising the manner of doing business for both customs administrations and traders, hence greatly reducing the delivery times and allowing rapid access to information (Arnold et al. ).In fact, the advancement of information systems enables containers’ operators to reduce the manual effort in providing services and facilitating the timely information flow and enhanced quality control in service and decision making (Kia et al., Ally and Mbamba ). Moreover, the use of computer simulations has simplified handling complex cargo facilities, leading to significant savings derived from the implementation of electronic devices in port terminals operation (Kia et al.
Against this backdrop, this study investigated the role of information systems usage in port logistics performance using the Dar es Salaam port as a case study.Of the several schools of thought regarding the influence of information systems usage on performance, a notable one is the productivity paradox, which claims that despite investments in information technology, there may be no corresponding productivity gains. The paradox has been widely discussed and debated. Although empirical data have revealed no improvement in productivity, those individuals who favour more investments in information technology argue that the information age is not an industrial age; therefore, new metrics to measure productivity are necessary and not necessarily the same as those of the industrial age. In addition, they argue that productivity is an output of many other factors in addition to information technology. This debate also calls for the proper evaluation of information systems usage; otherwise, the consequent effect may not be measured properly.The productivity paradox dominated the debates in the early 1990s, which involved more developed countries than developing countries.
Subsequently, a debate about the effect of information systems usage in developing countries emerged. Whereas one school of thought believes that developing countries can leapfrog from using information systems, i.e., there are positive effects of skipping some stages of development, negative effects are also prevalent; that is, information technology increases the gap between developing and developed countries because developing countries do not have the prerequisite infrastructure to support new technologies, and hence, their implementation may add more problems than it solves. However, effective usage of many new information technological tools may require high bandwidth and some necessary technological infrastructure that may not be present in some developing countries. In this regard, this study aimed to determine whether investment in information systems usage has any effect – particularly a positive one – on performance. Statement of the research problemCongestion at the Dar es Salaam port has been a critical pressing and challenging constraint.
This problem has had adverse effects on port operations and performance, which has resulted in tumbling revenue collections due to the divergence of some shipping lines and customers. This result maybe a reflection of subpar operational performance among port operators, where one factor is not leaving the port on time (Meersman et al. Over the past decades, solutions for many port information systems have been developed to improve ports’ efficiency. These information systems solutions have been developed to improve efficiency and meet the increasing demands on ports without requiring the physical expansion of the ports in question (Ayfantopoulou et al.
At a time when trade flows are down amidst rising competition, the possibility of making large-scale investments in port automation with a fleet of robots is typically challenging (Ikediashi et al. Due to the challenges and competitions of logistics performance in Tanzania, the study investigated the effect of information systems usage on port logistics performance at the Dar es Salaam port, which remains a serious concern for several port actors (Raballand et al., Daudi, Kunaka et al.
Objectives and significance of the studyThe main objective of this study was to investigate the role of information systems usage in boosting port logistics performance. Specifically, the work examined the role of information systems usage in contributing to the perceived decrease in shipping and trucking costs, improvements in timely delivery of goods and services, perceived increase in trade volume, and enhancement in organisational logistics capability at the Dar es Salaam port.Considering the inherent high stakes, this study is important because the port has responsibility for all aspects of the logistics and supply chain in Tanzania and globally. First, the study findings empirically expose the positive effects of information systems usage on ports performance. Second, on the practical side, the study informs port management about how to appreciate information systems usage and the attendant implications. The research can also inform policy makers about the role of information systems usage in enhancing the operational performance of ports.