Effect of Logistical Partnership on the Growth of Selected Retail Chains in Kenya
DOI:
https://doi.org/10.53819/81018102t5462Abstract
The sustainability and expansion of retail chains increasingly depend on the ability to coordinate transportation, distribution and supplier relationships across organizational boundaries. However, limited empirical evidence explains whether logistical partnership constitutes a strategic capability that contributes to retail-chain growth in the Kenyan context. The study examined the effect of logistical partnership on the growth of selected retail chains in Kenya. Logistical partnership was conceptualized as a higher-order construct comprising third-party transport providers, distribution networks and supplier partnerships, while retail growth was operationalized through branch expansion, market-share growth and employee growth. The study adopted a positivist philosophy and an explanatory-correlational cross-sectional research design. The study focused on Naivas Limited, Quickmart Limited and Carrefour Kenya and included strategic external suppliers. Data were collected using structured questionnaires administered physically and electronically. Of the 263 questionnaires targeted, 215 usable responses were obtained, representing an 81.7% response rate. Data were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings established that logistical partnership had a positive and statistically significant effect on the growth of selected retail chains in Kenya (β = .412, t = 4.525, p < .001, 95% CI [.220, .575]). The null hypothesis was therefore rejected. The finding indicates that the ability to coordinate external logistical resources constitutes a strategically relevant capability for retail growth. The study concludes that logistical partnership contributes to retail growth through the coordination of transportation, distribution and supplier capabilities rather than through transactional outsourcing alone.The study recommends that retail-chain management should strengthen logistical partnerships through performance-based agreements, joint planning, and information sharing to support growth. Industry associations and government agencies should improve logistics infrastructure, promote digital coordination, and establish common service standards.
Keywords: Logistical partnership; strategic partnership capabilities; retail growth; third-party transport providers; distribution networks; supplier partnerships; Kenya.
References
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Cao, M., & Zhang, Q. (2011). Supply chain collaboration: Impact on collaborative advantage and firm performance. Journal of Operations Management, 29(3), 163–180. https://doi.org/10.1016/j.jom.2010.12.008
Cytonn Investments. (2024). Kenya retail report 2024. https://www.cytonnreport.com/research/kenya-retail-report
Das, T. K., & Teng, B.-S. (2000). A resource-based theory of strategic alliances. Journal of Management, 26(1), 31–61. https://doi.org/10.1177/014920630002600105
Dyer, J. H., & Singh, H. (1998). The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, 23(4), 660–679. https://doi.org/10.5465/AMR.1998.1255632
Gulati, R. (1998). Alliances and networks. Strategic Management Journal, 19(4), 293–317. https://doi.org/10.1002/(SICI)1097-0266(199804)19:4<293::AID-SMJ982>3.0.CO;2-M
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2022). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook. Springer. https://doi.org/10.1007/978-3-030-80519-7
Hübner, A., Holzapfel, A., & Kuhn, H. (2016). Distribution systems in omni-channel retailing. Business Research, 9(2), 255–296. https://doi.org/10.1007/s40685-016-0034-7
Hübner, A., Wollenburg, J., & Holzapfel, A. (2016). Retail logistics in the transition from multi-channel to omni-channel. International Journal of Physical Distribution & Logistics Management, 46(6–7), 562–583. https://doi.org/10.1108/IJPDLM-08-2015-0179
Kock, N., & Hadaya, P. (2018). Minimum sample size estimation in PLS-SEM: The inverse square root and gamma-exponential methods. Information Systems Journal, 28(1), 227–261. https://doi.org/10.1111/isj.12131
Lavie, D. (2006). The competitive advantage of interconnected firms: An extension of the resource-based view. Academy of Management Review, 31(3), 638–658. https://doi.org/10.5465/amr.2006.21318922
Leuschner, R., Rogers, D. S., & Charvet, F. F. (2013). A meta-analysis of supply chain integration and firm performance. Journal of Supply Chain Management, 49(2), 34–57. https://doi.org/10.1111/jscm.12013
Mathu, K., & Phetla, S. (2018). Supply chain collaboration and integration enhance the response of fast-moving consumer goods manufacturers and retailers to customer requirements. South African Journal of Business Management, 49(1), Article 192. https://doi.org/10.4102/sajbm.v49i1.192
Peteraf, M. A. (1993). The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14(3), 179–191. https://doi.org/10.1002/smj.4250140303
Saunders, M. N. K., Lewis, P., & Thornhill, A. (2023). Research methods for business students (9th ed.). Pearson.
Taracha, C. M., & Noor, I. S. (2023). Supply chain traceability and performance of retail firms in Kenya. International Journal of Social Sciences Management and Entrepreneurship. https://mail.sagepublishers.com/index.php/ijssme/article/view/300
Van Staden, T., Niemann, W., & Meyer, A. (2020). Interpersonal and inter-organisational relationships in supply chain integration: An exploration of third-party logistics providers in South Africa. Acta Commercii, 20(1), 1–13. https://doi.org/10.4102/ac.v20i1.867
Wang, T.-Y., Chen, Z.-S., He, P., Govindan, K., & Skibniewski, M. J. (2023). Alliance strategy in an online retailing supply chain: Motivation, choice, and equilibrium. Omega, 115, Article 102791. https://doi.org/10.1016/j.omega.2022.102791
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180. https://doi.org/10.1002/smj.4250050207
Zampou, E., Karagiannaki, A., & Griva, A. (2025). Horizontal logistics collaboration in Greek retail: A stage-wise approach to supply chain innovation. Global Journal of Flexible Systems Management, 26(4), 795–812. https://doi.org/10.1007/s40171-025-00462-y
