Influence of Lean Quality Management on Operational Performance of Third Party Port-Centric Logistics Firms in Kenya

This research paper largely explored lean quality as proposed by luminaries of lean concept. The study aim was to propose and test conceptual model of the relationship between lean quality and operational performance of third-party port-centric logistics (3PL) firms in Kenya. The objective was to determine the relationship between quality management and operational performance of third-party port-centric logistic firms in Kenya and test the hypothesis (H0) that there is no significant difference in the relationship between quality management and operational performance of Third-Party Port-Centric Logistics firms in Kenya. Most studies in the area were done outside the African continent and dwelt largely on manufacturing firms. Port-centric logistics as logistics services providers are critical to any country since they are the interface between exporter and importer and the study put a lot of emphasis on finding out the relationship between quality management as a lean practice and operational performance of these firms. This is the gap this research sought to address. A survey based on stratified sampling with a disproportionate approach consisting of 164 firms (15% of the population) was used in data collection using 164 questionnaires targeting 164 third party port-centric logistics firms. The response rate for this study was 75.6% (124 firms). Data analysis was carried out using moderated multiple regression (MMR) analysis where relationship between the two variables was determined. The relationship was determined and the tests of reliability using Cronbach alpha, normality using Q-Q plots and test of hypothesis conducted. The study found out that quality management variable is statistically and significantly related to the operational performance, contributing to the strength of the overall model (with adjusted R2 of 46.9%) with a beta coefficient of .167. This was considered good enough link with an appreciation that operational performance is also affected by other organizational and management factors outside the model that may be internal or external to the organization. Consequently, this study immensely provides information and knowledge that will play a role in research agenda in this area of lean management in services, in operations performance and 3PL firms. The study proposes policy formulation that would support measures that will boost and graft-in both quality and best practices that will eventually poster excellency in operational performance by third party port-centric logistics providers not only in Kenya but in east Africa and Africa at large.