The performance of the DHL in Kenya has been declining since 2017 (Mbiti & Maina, 2018). The market shares of the company in Kenya reduced significantly from 37% to 23% after the loss of the warehousing job from the EABL headquarters in Ruaraka to Bollore Transport and Logistics Kenya, a subsidiary of French multinational Bollore (Kawiti, 2017). Moreover, in 2018, the profitability of the company reduced from 18.6 billion to 13.4 billion after the loss of significant contracts from EABL, which used to contribute to more than 28% of its total revenue in Kenya (Muhoro, 2019). Besides, in 2016, more than 300 employees were issued with redundancy letters signifying the poor performance of the organization was dwindling (Asudi, & Shale, 2017). Therefore, the poor performance of the DHL in terms of loss of the market share and low profitability may be a result of ineffective management practices, thus forms the foundation of the current study that will examine the effect of management practices on performance of DHL company ltd in Kenya.
Besides, information about the effect of management practices on performance of DHL company Ltd in Kenya remains scanty. For instance, Ngii (2017) established that critical risks such as technological risks, political risks, market risks, environmental risks, and financial risks determine an organization’s sustainability. However, the study presents a contextual gap since it concentrated on a local logistics company, while the current study will examine an international logistic company. Also, Nzuki (2017) established that strategic planning practices adopted by Sandoz GmbH Kenya included objective setting, formulation of a strategic plan, participatory decision making, reward and recognition, training and development and employee participation and it had a positive influence on the performance. However, the study presents a contextual gap since it was conducted in a pharmaceutical while the current study will be done in a logistics company. Likewise, Kibe (2014) established that open communication is an effective communication strategy that enhances the Kenya Ports Authority’s performance. Nonetheless, the presents a contextual gap because it was not conducted in a logistics company.
Furthermore, Nyang’ au (2017) established that risk flexibility strategies, risk collaboration strategies, risk control strategies and risk avoidance strategies positively influenced the performance of food and beverage manufacturing firms. However, the study presents conceptual gap because the objectives scope of the current study will be effect of risk management, capacity building, communication and strategic planning on performance. Also, Mulongo (2017) revealed that strategic logistic practices, reverse logistic, inventory management and strategic warehousing have significant positive influence on firm performance. However, the study presents a conceptual gap because the study was limited to strategic logistic practices, reverse logistic, inventory management and strategic warehousing. Therefore, it is evident that none of the studies was conducted to DHL in Kenya; therefore, a knowledge gap exists that will be ascertained by examining the effect of management practices on performance of DHL company ltd in Kenya.