WAREHOUSE LAYOUT AND PERFORMANCE OF DISTRIBUTION FIRMS IN KENYA
Keywords:
Warehouse Layout, Firm Size, Distribution Firms, Theory of ConstraintsAbstract
This study sought to establish the effect of warehouse layout on performance of distribution firms in Kenya. This study was anchored on the theory of Constraints (TOC) and theory of the firm. This study used both descriptive and explanatory research designs. In addition, this study employed a positivist research philosophy. The target population was based on the total of 1061 registered distribution firms in Kenya spread all over the country. The overall sample size for this study was determined using a formula by Yamane formula. Therefore, using the Yamane formula, the sample size for the study was 290 distribution firms. This study also used questionnaire to collect data relevant to this study. Quantitative data collected was analyzed using descriptive statistical techniques which are frequencies, mean, standard deviation. Inferential statistics which include Pearson correlation and the Regression Analysis Model were used to test the relationship between study variables. To test moderating effect the study used hierarchical regression model. The significance of the model was tested at 5% level of significance. Data was analysed using Statistical Package for Social Sciences (SPSS) software. The study results were presented through use of tables and figures. The returned questionnaires for the pilot test were 15 (100%). From the validity findings, construct validity and content validity were met an indication that the data collection tool was valid and was suitable to be used for further data collection as is; no item was excluded/altered. Also, All the variables were found to have Cronbach alpha value greater than 0.70. This suggested that all the variables were reliable. Therefore, the questionnaire was valid and reliable and was used to collect data for the actual study. From the descriptive analysis, the study found that respondents agreed on average that warehouse layout affects performance of distribution firms in Kenya. From the regression findings, a unit increase in warehouse layout would result in a 0.732 (p=0.000) increase in performance of distribution firms in Kenya. Finally, the study found that introduction of firm size as moderating variable has positive influence on performance of distribution firms in Kenya; it led to .093 change in R Square. The study therefore recommends that distribution firms should give priority to warehouse layout (distribution Center Layout, fulfilment Center Layout and cross-Docking Facility Layout).
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