IMPLICATIONS OF INFORMATION TECHNOLOGY ON PERFORMANCE OF LOGISTICS

FIRMS IN KHOMAS REGION

BY

..............................................

(name of student)

STUDENT NUMBER: ………….

A MINI THESIS RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENTS FOR THE DEGREE OF BACHELOR OF xxxxxxxxxxxxxx IN THE FACULTY OF
MANAGEMENT SCIENCES

NAMIBIA UNIVERSITY OF SCIENCE AND TECHNOLOGY

SUPERVISOR: ........................

May, 2022

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 CHAPTER 1

INRODUCTION AND BACKGROUND 0F THE STUDY

1.1 Introduction

If deployed effectively, new supply chain technology can assist increase supply chain agility,
power up operations, cut cycle time, achieve improved efficiency, and deliver items to
customers on time (Koellinger, 2006). It's also critical to ensure that new solutions work
with existing technologies and procedures. Integrating new technology into current
processes can significantly improve customer service, lower costs, and streamline supply
chains (Kenneth & Laudon, 2007).

1.2 Background of the study

Kenneth & Laudon (2007), has defined information technology and/or management of any
computer-based information systems as the study, design, development, and
implementation support. This is especially true when it comes to software programmes and
computer hardware. Information technology is concerned with the use of electronic
devices, computers, and software to convert, store, protect, process, retrieve, and transfer
data in a secure manner (Kenneth & Laudon, 2007).

A recent illustration of the dynamics of technical change and economic development is the
continual proliferation of new Information Communication Technology (ICT) and e-business
technologies among businesses (Koellinger, 2006). IT has the potential to have a substantial
impact on people and commodities mobility; it is a potential enabler of change in social and
organisational behaviours, altering demand for transportation in both spatial and temporal
terms. Technological advancements in the field of telemetrics will match the requirement
for comfort, safety, and speed (Capgemini, 2008). This includes traffic and transportation
management systems, travel information and reservations, vehicle guidance, and mobility
cards, among other things. Firms in the transportation and logistics sector have made
tremendous success in adopting new technologies in recent years, notably those related to
the internet and e-business (Koellinger, 2006).

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The impact of IT on logistics service organisations has exacerbated the challenges of
assessing performance, as it is especially difficult to pinpoint the role of IT in delivering
improved corporate performance (Kenneth & Laudon, 2007). Many businesses have
embraced information technology into their business processes to improve operational
excellence as a result of its rapid expansion. Logistics companies, in particular, have not
been left behind when it comes to incorporating technology into their business processes
(Closs & Kefeng, 2007).

1.3 Statement of the Problem

Despite the widespread deployment of information technology in the logistics sector today,
observation has revealed that not all of the objectives have been accomplished and felt by
users (Christopher, 2005). Today's logistic corporations appear to be primarily concerned
with moving and procuring goods from one location to another while increasing profit,
oblivious to the vital and more important areas such as ensuring that transaction equipment
functions well and providing protection to commodities in transit (Hansen, 2015).
Furthermore, since the volume of transactions grows every day, logistic enterprises have
found it difficult to grow and meet their commitments As a result, the purpose of this study
is to investigate the implications of information technology on the performance of logistic
firms in Khomas Namibia in order to recognise its major impact on their operations and
ensure their profitability and expansion.

1.4 Purpose of the Study

The study will focus on the impact of information technology on logistics enterprises in the
Khomas region. As a result, the scope chosen was logistics enterprises in Namibia's Khomas
Region. The study will concentrate on small and medium-sized third-party logistics
companies in the county that provide cargo tracking, fleet management, forwarding and
clearing services, as well as transportation and parcel delivery. The selected firms' top and
middle management will be interviewed for the study.

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1.5 Research Objectives

1.5.1 General Objective of the Study

The general objective of this study is to establish the effects of Information Technology on
the performance of logistics firms in Khomas Region, Namibia.

1.5.2 Specific Objectives

The study is guided by the following specific objectives

I. To determine how levels of IT usage affect performance of logistic firms in Khomas

Region.

II. To establish the influence of cargo tracking and security system on the performance
of logistic firms in Khomas Region.

III. To establish how use of IT on customer service delivery system affect performance of
logistic firms in Khomas Region.

IV. To determine how information integration influence the performance of logistics

firms in Khomas Region.

1.6 Research Questions

In order to achieve its objectives, the researcher will use the following research questions in
line with the research objectives. These include the following;

I. How does the level of IT usage affect performance of logistic firms in Khomas
Region?

II. How does cargo tracking and security system on the performance of logistic firms in
Khomas Region?

III. How does IT usage on customer service delivery influence performance of logistic
firms in Khomas Region?

IV. How information integration with influences the performance of logistics firms in
Khomas Region?

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1.7 Significance of the Study

The following are some of the reasons why this study is important: firms and managers will
have a better grasp of how technology influences their business, which will drive them to
pursue better technology equipment.

1.8 Limitations of the Study

The limitations of this research may include financial constraints and inadequate time in
which to do the research and restricted interaction due to the on going coronavirus
situation in Namibia.

1.9 Delimitations of the Study

This study will be held in Khomas Region and the population of this study will involve 10
logistics firms in Khomas.

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 CHAPTER TWO

LITERATURE REVIEW

2.1 empirical Review

Implementing new IT and making complementary investments can lead to innovations, and
innovations are linked to increased turnover. To put it another way, innovative businesses
are more likely to expand (Seddon, 2005). Several countries have experienced tremendous
economic growth as a result of IT. Prior research on IT and global economy growth shows
that the contribution of IT to output growth was quite significant for economies between
1990 and 1995 and 1996 to 2000 (Baradwaj, 2010). Countries with high levels of IT
dissemination often see the greatest economic gains from IT. The United States, Canada,
New Zealand, Australia, the Nordic countries, and the Netherlands have the highest rates of
IT dispersion, according to OECD data (Baradwaj, 2010).

Logistic companies may now track their cargo and fleet using technology. This has had a
long-term influence on the cargo and fleet's security. The mandate for all truckers in
Namibia to install the Electronic Cargo Tracking System (ECTS) was met with hostility at first.
Truckers, on the other hand, have gradually accepted the ECTS, which aims to replace the
security bond while monitoring cargo in transit and delivering real-time information on
cargo location, security, and condition (Meuter, 2010). O’Dell (2009) notes that customs
authorities in several regions of the world are presently implementing the ECTS to avoid a
variety of hazards, including considerable revenue loss, cargo theft, and enhancing
regulatory compliance.

One of the most significant advantages of radio-frequency identification is that data

interchange between tags and readers is quick and automatic, requiring no direct contact or
line of sight (Meuter, 2010). This will allow for more exact inventory management data to be
accessed. The study intends to see if there is any link between this and the performance of
logistics companies.

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The importance of supply chain partnerships in attaining the firm's objectives cannot be
overstated. Companies profit more from better coordination and integration of activities
with suppliers, as well as a better grasp of client needs. Supply chain management,
according to Closs & Kefeng (2007), is inextricably linked to relationship management, which
involves suppliers and customers. Strategic supplier partnerships and customer relationships
are key components of supply chain management techniques, which contribute to
information exchange, one of the five pillars of a strong supply chain relationship.

The complementarily view, which was absent from traditional technology diffusion
literature, indicates that gaining a deeper grasp of the complimentary elements that may
help or hinder a firm's IT adoption is a pressing concern for both managers and policymakers
today (Croom, 2006). First, when a company's technical decisions are in line with its
operational and organisational preparation for new technologies, they are more likely to
succeed. As a result, managers must align their efforts to maximise the efficacy of IT
adoption and usage with their organisations' ability to adapt to new technology. Second,
taking a complementary approach can assist policymakers obtain new insights into how to
build industrial policies that encourage the use of new technology. For example, firms in
different industries have varied business conditions in terms of market competitiveness and
unpredictability, therefore the amount to which industrial strategy reflects and responds to
the unique circumstances of their particular industries may influence their incentive to use
IT (Meuter, 2010).

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 CHAPTER 3

RESEARCH METHODOLOY

3.1 Research Design

The descriptive survey method will be used in this investigation. A research design is a plan,
structure, and method for obtaining answers to research questions while also controlling
variance (Nachmias, 2006). As a result, this design is chosen for this study since it allowed
the researcher to gather cross-referencing data, independent validation of data, and a
variety of possibilities.

3.2 Population

Ten logistics enterprises in Khomas Region will make up the study's population. The study's
main target audience will be the firm's management, as well as top procurement and
transportation managers.

3.3 Sample

The study will use of sample size of 10 logistics firm in Windhoek. A sample is a smaller
group or sub-group drawn from the population that is accessible (Nachmias, 2006).

3.4 Research Instruments

A research questionnaire will be used to collect primary data. Questionnaires were used to
collect data. A questionnaire, according to Nachmias (2006), is a properly developed
instrument for gathering data in accordance with the research questions' specifications.

3.4 Data Collection Procedure

Before the study can be done, the researcher will have to get permission from the managers
of the logistics companies and the University. After getting approval from the university and

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the managers, the questionnaires for the study's sample will be printed and given to them.
After all of the questionnaires are filled out, the researcher will collect, present, and try to
make sense of the data.

3.5 Data Analysis

Quantitative data will be examined using statistical approaches and generated using the
statistical package for social sciences (SPSS), with the results presented in pie charts, tables,
and bar graphs.

3.6 Validity

The research instruments used in this study were carefully designed to ensure their
reliability and validity in achieving the study's goals. Three people from two logistics
companies will be used.

3.7 Reliability and Validity

The degree to which a research instrument produces consistent outcomes or data following
repeated administration is known as reliability (Nachmias, 2006). A measuring tool is only
trustworthy if the results are consistent. The dependability coefficient can be calculated in a
research study to determine how dependable data is.

3.8 Research Ethics

Ethics are extremely important in research; research ethics dictate that the sample group's
identity be protected and that their data be treated with confidentiality. With this in mind,
the researcher will specifically request that respondents to the questionnaires do not write
their names, the researcher is considering not recording the names of the respondents who
will be interviewed, and the researcher is generally opposed to the idea of the data
collected being handled by any third party.

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 References

Baradwaj, (2010). Logistics information systems: The strategic role of top management.
Journal of Business Logistics, 15(1), 23-30.

Capgemini (2008).Third-Party Logistics - The state of logistics outsourcing, available a

change on business outcomes. Transformation of the Value Chain of Japan Airlines.

Christopher, M. (2005). Logistics and supply chain management: creating value-added

networks. New Yoke: McGraw-Hill

Closs, J. & Kefeng, X. (2007). Logistics information technology practice in manufacturing and
merchandising firms. An international benchmarking study versus world class logistics firms.
International Journal of Physical Distribution & Logistics Management, 30(21), 231-245.

Croom, R. (2006). The Impact of Web-based procurement on the management of operating

resources supply. Journal of Supply Chain Management, 36(1), 4-13.

Hansen, L. (2015). The impact of information technology on logistics. International Journal

of Harvard Business Review, 63 (4), 149-160.

Kenneth, H. & Laudon, F. (2007). Inclusive supply chain using electronic market- places”,
Integrated Manufacturing Systems. Uckingham: Open University Press.

Koellinger, N.J. (2006). Critical success factors of web-based supply-chain management

systems. An exploratory study, Production Planning & Control. Australia: Elsevier Australia

Meuter, M. (2010). Technology infusion in service encounters. Journal of the Academy of

Marketing Science, 28(1), 38-99.

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Nachmias, F. (2006). Research Methods in the Social Sciences. Thousand Oaks: Sage
publications.

Seddon, N. (2005). Service Management: Operations, Strategy, Information Technology.

Singapore: McGraw-Hill.

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