Digital Transformation Strategies and Performance of Freight Forwarding Companies in Kenya

Abstract: The freight forwarding industry plays a critical role in facilitating international trade and enhancing supply chain efficiency in Kenya. However, the sector continues to experience operational challenges arising from fragmented processes, limited cargo visibility, inefficient information management, and increasing customer expectations. Although digital transformation has been widely promoted as a solution to these challenges, empirical evidence on its influence on the performance of freight forwarding companies in Kenya remains limited. This study therefore examined the effect of digital transformation dimensions on the performance of freight forwarding companies in Kenya. Specifically, the study investigated the influence of customer relationship management (CRM) strategies on organizational performance. The study was anchored on Dynamic Capabilities Theory, the Resource-Based View Theory, and the Technology Acceptance Model. A descriptive research design was adopted. The target population comprised 1,086 licensed freight forwarding companies in Kenya as registered by the Kenya Revenue Authority in 2025. Using Yamane’s formula with an 8 percent margin of error, a sample of 140 firms was selected, with operations and logistics managers serving as the respondents. Primary data were collected using a structured questionnaire based on a five-point Likert scale. A pilot study involving 14 respondents was conducted to test the reliability and validity of the research instrument. Reliability results indicated Cronbach’s Alpha coefficients above 0.70 for all constructs, while content and construct validity tests confirmed the suitability of the instrument. Out of the 140 questionnaires administered, 118 were successfully completed and returned, representing a response rate of 84.3 percent. Data were analyzed using descriptive and inferential statistics with the aid of the Statistical Package for Social Sciences (SPSS). Descriptive statistics included frequencies, percentages, means, and standard deviations, while inferential analysis involved Pearson correlation and multiple regression analysis. The findings revealed that all the digital transformation dimensions had positive and statistically significant effects on the performance of freight forwarding companies. Customer Relationship Management dimensions recorded the strongest influence on performance (β = 0.418, p < 0.05). The regression model explained 58.0 percent of the variation in organizational performance (R² = 0.580). The study concludes that digital transformation dimensions significantly enhance the performance of freight forwarding companies in Kenya. The study recommends increased investment in customer relationship management platforms. Keywords: freight forwarding industry, digital transformation, customer relationship management (CRM). Title: Digital Transformation Strategies and Performance of Freight Forwarding Companies in Kenya Author: Jacinta Mumbua Kivuva, Dr. Elizabeth Nambuswa Makokha, Dr. Albert Njibwakale Wanambisi International Journal of Recent Research in Commerce Economics and Management (IJRRCEM) ISSN 2349-7807 Vol. 13, Issue 3, July 2026 - September 2026 Page No: 33-50 Paper Publications Website: www.paperpublications.org Published Date: 21-July-2026 DOI: https://doi.org/10.5281/zenodo.21476648 Paper Download Link (Source) https://www.paperpublications.org/upload/book/Digital%20Transformation%20Strategies-21072026-1.pdf