Adoption of Reverse Logistics in Information and Communications Technology Firms in Kenya
Abstract
Moving goods from their point of origin towards their final destination represents forward
logistics while reverse logistics is the movement of products or materials in the opposite
direction. The purpose of reverse logistics is to recapture the product residual value at the point
of dismissal and ensure safe disposal of toxic and hazardous contents at their end of life. When
discarded into the landfill, these hazardous contents are also damaging to the ecosystem. The
purpose of this study was therefore to establish the extent to which reverse logistics has been
adopted in the ICT sector in Kenya. The study also aimed at establishing the barriers or driving
forces that determine adoption of reverse logistics in this sector in Kenya. A census survey of 40
ICT firms registered with the Communications Authority of Kenya (CAK) was designed to
provide insight on extent of adoption of and barriers to reverse logistics by the ICT firms.
Primary data was collected using structured questionnaires designed by the researcher.
Descriptive statistics including frequency, percentages, mean and standard deviation as well as
principle component analysis were used to analyse data obtained to put forward
recommendations. Results showed that operators in the ICT sector have adopted reverse logistics
to appreciable levels.It was therefore recommended that stakeholders put in place measures to
spur adoption and implementation of reverse logistics. Such efforts could for instance begin with
massive awareness creation on the relevance of reverse logistics. The Government through
National Environmental Management Authority (NEMA) should enhance support for reverse
logistics. This could be done through provision of attractive incentives schemes like favourable
taxation systems. Another approach is for government to set up a collaborative entity or strategic
alliance to run reverse logistics for a number of firms in the same industry. This collaborative
approach is more effective and efficient as it reduces the investment of individual firms and
enables economies of scale through centralization.
Key words: Reverse Logistics, ICT, Communication Authority of Kenya.
Citation
Degree for Master of Business Administration,2014Publisher
University Of Nairobi