Drivers and contingent factors for the adoption intention of joint cross-docking third-party logistics by FMCG manufacturers in Kenya

Abstract

The aim of this study was to investigate the drivers and boundary conditions of joint cross-docking adoption intention of Fast-Moving Consumer Goods (FMCG) manufacturers in Kenya. This research is motivated by the insufficient understanding on organizational motivations that can drive organizations intention to adopt joint cross-docking as well as the enabling conditions that can facilitate this relationship. The study employs a quantitative approach to research design, utilizing quantitative data from surveys. The study through a literature review identifies two drivers of adoption intention, which are efficiency motivation and legitimacy motivation for adoption intention and presents a research model that examines how organizational readiness, and inter-organizational trust condition the extent to which these organizational motivations drive cross-docking 3PL adoption intention among FMCG manufacturers in Kenya. A purposive sampling approach was used to obtain a sample of 176 FMCG companies and analyzed using SPSS version 27.0 and a Covariance Structural Equation Modelling (CB-SEM) through LISREL 8.8. The study revealed that both organizational motivations have significant positive relationship with joint cross-docking adoption intention. The study also found that inter-organizational trust positively moderates the relationship between organizational motivations and joint cross-docking adoption intention. Contrary to expectations, organizational readiness negatively moderates the relationship between efficiency motivation and joint crossdocking adoption intention, whereas it failed to significantly moderate the relationship between legitimacy motivation and joint cross-docking adoption intention. Managers should therefore prioritize efficiency improvements by emphasizing the potential benefits of joint cross-docking, including lower transportation expenses and enhanced delivery timelines. Firms need to promote open communication by encouraging transparent and consistent dialogue among partners to foster trust. Policymakers should also consider offering incentives for adoption. They might provide inducements, such as tax reductions or subsidies, to motivate organizations to embrace joint cross-docking. Keywords: Efficiency motivation; Legitimacy motivation; Joint Cross-docking; Interorganizational trust; Organizational readiness