Distribution Strategies, Tracking Technology and Quality Service Delivery in Kenya’s Courier Sector

This study examines the effect of exclusive and intensive distribution strategies on service delivery in Kenya’s courier industry, with tracking technology as a moderating variable. Anchored in resource-based theory and economic distribution channel theory, the research adopts a positivist paradigm and explanatory design. Data was collected from 426 clients across twelve courier firms using validated structured questionnaires. Descriptive statistics and multiple regression analyses were employed. Results indicate that both distribution strategies positively influence service delivery, with tracking technology significantly moderating these relationships. The study recommends strategic enhancement of distribution systems, integration of tracking technologies, and investment in capacity building to improve service performance.

Introduction

In today’s competitive service landscape, courier providers aim to deliver high-quality services that boost customer satisfaction and loyalty (Ramyaet al., 2019; Wirtz & Zeithaml, 2018). Key service delivery factors include reliability, competence, personalization, empathy, and responsiveness (Ben-Galet al., 2015), with distribution strategies playing a central role (Ogutu & Wanyoike, 2021). The rise of e-commerce and changes in consumer behavior, accelerated by the COVID-19 pandemic have intensified global demand for courier services (Hyun-su, 2021; Sanchez, 2020). Companies like DHL, FedEx, and UPS responded by strengthening their in-house distribution networks, including customs clearance, warehousing, and last-mile delivery (Gruenwald, 2020). In Kenya, technology-driven logistics such as optimized routing and scheduling, have improved service quality (Abdullahiet al., 2017a; Ejdys & Gulc, 2020), while models like Collection-and-Delivery Points (CDPs) have reduced delays and losses in B2C deliveries (Zeneziniet al., 2018).

Courier firms employ various distribution strategies, including; direct, indirect, exclusive, and intensive, based on market demands and logistical capacity. Direct strategies use in-house staff and digital tools, while indirect approaches rely on third-party agents for wider reach (Kocaogluet al., 2020). Intensive strategies focus on coverage, whereas exclusive ones emphasize quality through controlled service points (Baranska & Marek, 2020). In developing regions, last-mile delivery is critical, especially for essential items like medicines, with drones increasingly supplementing traditional methods (Yadavet al., 2013). Strategic warehousing also remains vital for efficient logistics (Jermsittiparsert & Sutduean, 2019).

Globally, parcel delivery is a €70 billion market, with the U.S., China, and Germany accounting for 40% of the share (Oxford Economic Forecasting, 2018). Growth in e-commerce and complex global supply chains have elevated the importance of courier services in timely, reliable delivery (Ejdys & Gulc, 2020). In Europe, countries like Germany, Spain, Italy, and the Netherlands derive 76%–80% of GDP revenue from courier-related services, underscoring the sector’s economic significance (Ejdys & Gulc, 2020). The strategic role of distribution in courier services is increasingly evident in emerging economies. In Malaysia, participation in the Trans-Pacific Partnership was projected to boost the industry by 20%, reaching £4 billion in revenue by 2020 (Ninikaset al., 2016). Singapore’s world-class transport infrastructure continues to attract major logistics firms like DHL, FedEx, and UPS, especially in B2B services (Tan, 2018). In Bulgaria, technological investments have driven more efficient service models (Otsetova & Dudin, 2016), while in Poland, the e-commerce boom, where 30% of internet users shop online has increased demand for effective last-mile delivery (Karcz & Ślusarczyk, 2016). These trends underscore a global shift toward technology-driven, customer-focused distribution strategies as vital to both national and international commerce. Notably, tracking technologies have enhanced transparency, efficiency, and reliability in delivery, serving as a key enabler that strengthens the relationship between distribution strategies and service quality (Krastev, 2017).

In Sub-Saharan Africa, courier distribution strategies vary widely due to differences in regulation, market maturity, and service quality. In Ghana, the industry is relatively underdeveloped and regulated by the Postal and Courier Services Regulatory Commission (PCSRC), which classifies operators as either global (handling international and domestic deliveries) or domestic-only (Alimo & Zao, 2018). Key players include multinationals like DHL, UPS, FedEx, and TNT, alongside national firms such as EMS and BKB. Namibia shows a similar landscape but with distinct challenges. Jeskeet al. (2015) highlight mismatches between customer expectations and service provider perceptions, which hinder operational efficiency. Despite this, customer service remains a crucial factor in distribution effectiveness. In Uganda, the third-party logistics (3PL) sector includes both globally aligned, high-performing firms and others offering low-cost but unreliable services. The main challenge lies in bridging this performance gap to achieve consistent service quality across the sector (World Bank Group, 2017). These regional cases highlight the importance of selecting appropriate distribution channels, direct (firm-owned or digital platforms) or indirect (retailers, wholesalers, or 3PLs). The choice directly affects delivery speed, cost-efficiency, and reliability, all of which are essential in dynamic, resource-constrained environments.

Kenya’s courier sector has evolved into a dynamic logistics ecosystem, utilizing diverse delivery modes from door-to-door and motorcycle transport to air and sea freight. Initially focused on urgent, secure document delivery, the industry has expanded to handle parcels and bulk consignments, driven by demand for speed, reliability, and real-time tracking capabilities traditional postal services have struggled to match (Abdullahiet al., 2017b; Bennett, 2024). The 1999 liberalization of the industry opened the market to both local and international providers as detailed in the Communications Authority of Kenya (2022), Sector Statistics Report Q3 2021/2022. While the Postal Corporation of Kenya (PCK) remains influential, the landscape now includes global firms like DHL, UPS, FedEx, and G4S, as well as local players such as Wells Fargo, Riley Falcon, and Prestige Courier Services. Public transport operators like Easy Coach and Modern Coast have also entered the market, expanding delivery reach. Regulated under the PCK Act (1998), courier operators must meet international standards for speed, reliability, accessibility, and security (Republic of Kenya, 1998). The sector’s growth has been fueled by the rise of e-commerce and fast-moving consumer goods (FMCG) distribution (Kaingu, 2016). As of 2022, Kenya had 263 licensed courier firms in addition to the PCK, contributing approximately KES 14.1 billion to the economy and showing strong growth potential (Communications Authority of Kenya, 2022).

Distribution strategy remains a core determinant of operational success in this highly competitive sector. Mwanzia (2011) observed that Kenyan courier firms increasingly adopt differentiation strategies offering specialized, high-value services and employ advanced information systems to enhance service speed and reliability. More recently, the integration of emerging technologies such as Artificial Intelligence (AI), Big Data analytics, and the Internet of Things (IoT) has become central to modern distribution strategy. These technologies facilitate predictive demand forecasting, intelligent routing, real-time tracking, and personalized service delivery, thereby improving customer satisfaction and organizational agility (Bennett, 2024; Arumugamet al., 2024). Kenya’s courier industry thus mirrors global trends in digital logistics while retaining unique regional characteristics, such as the integration of public transportation networks in service distribution. The continuous adaptation of distribution strategies, supported by technology and regulatory compliance, will be essential in maintaining competitiveness and ensuring optimal service delivery across Kenya’s dynamic logistics landscape.

The courier sector has emerged as a superior alternative to the worldwide postal system. In nations such as Germany, Spain, Italy, and the Netherlands, 76% of GDP and 80% of total income derive from courier services, a phenomenon linked to expansion in manufacturing, retail, fast-moving consumer goods, and e-commerce platforms (Ejdys & Gulc, 2020). The application of direct distribution, indirect distribution, exclusive distribution, and intensive distribution strategies is expected to significantly enhance courier service delivery. In Kenya, data from CAK (2015) indicates that revenue from the postal and courier industry increased from Kshs. 6 billion in 2006 to Kshs. 14.1 billion in 2015, despite projections estimating a revenue growth to Kshs. 17 billion by 2013. In 2019, PCK incurred a loss of Kshs. 12,438,989 (Office of the Auditor-General, 2020). The decline is partly attributed to inadequate service delivery by courier companies in Kenya. Notwithstanding substantial investments in distribution to establish and sustain quality service delivery (Ramyaet al., 2019), numerous courier service providers' distribution strategies continue to falter in attaining their objective of quality service delivery. The observed decrease in revenue and profitability can be attributed to diminished business activity resulting from technological advancements and heightened rivalry from entities such as Matatus (public transport vehicles) and busses that have penetrated the courier sector (Gachengoet al., 2017).

Although distribution is a vital component of marketing strategies for both products and services, the majority of research has predominantly concentrated on the distribution of tangible goods (Adimo & Osodo, 2017; Chesesio & Makokha, 2016). A knowledge gap arose from the dearth in studies on the interaction effect of technology on the nexus between distribution strategies and quality of service delivery in the courier services sector in Kenya (Hsu, 2017; Oliech, 2017; Kaingu, 2016). The research objectives were to:

1. Establish the effect of exclusive distribution strategy on quality of service delivery

2. Establish the effect of intensive distribution strategy on quality of service delivery

3. Determine the moderating effect of tracking technology on the relationship between exclusive distribution strategy, intensive distribution strategy and quality of service delivery.

Literature Review

Theoretical Review

The review of literature was guided by a theoretical review, followed by an empirical review. The paper anchored on two theories; Resource Based Theory (RBT) and Economic Distribution Channel Theory. Resource-Based Theory originally conceptualized by Penrose (1959) and later advanced by Rumelt (1984), provides a foundational framework for understanding firm heterogeneity and sustained competitive advantage. Distribution strategies used by courier services providers; are regarded as resources and capabilities, that when effectively utilized, by courier services providers, can ensure sustainable service delivery to the clients. Consequently, they can give a courier services providers’ competitive advantage over rival companies offering courier services. The Economic Distribution Channel Theory, introduced by Bucklin (1966), offers a framework for evaluating the efficiency and effectiveness of various distribution channels by aligning service outputs with customer preferences, costs, and willingness to pay. The theory posits that the optimal distribution channel is determined by assessing the level of service outputs delivered, the associated customer costs, and the comparative efficiency of alternative distribution channels (Bucklin, 1966; Sternet al., 1996). In the context of Courier Services, this means aligning channel design with consumer preferences for attributes such as speed, accessibility, reliability, and price (Cohenet al., 2013).

Empirical Review

Empirical review in this study focused on three aspects; exclusive distribution strategy, intensive distribution strategy, tracking technology and service delivery.

Exclusive distribution Strategy and Service Delivery

Recent research highlights the strategic role of distribution in influencing customer behavior and enhancing service delivery. Mohsenet al. (2023) found that intensive and selective distribution strategies significantly affect consumer decisions for convenience products, though their study overlooked service delivery, a critical aspect in courier services. Similarly, Ohai and Iyadi (2024) demonstrated that selective distribution positively impacts brewery performance, emphasizing how strategic channel choices can support brand positioning and strengthen channel relationships key goals in courier operations. From a spatial perspective, Saejoon (2019) showed that location and outlet size influence profitability in quick-service restaurants, offering valuable parallels for optimizing courier service points and last-mile delivery. Trovao (2019) found that exclusive digital distribution channels led to higher order frequency and product uptake, pointing to the efficiency of online-only models. Zeneziniet al. (2018) further supported the value of exclusivity, noting that collection-and-delivery point (CDP) models in Italy reduced delivery failures and improved logistics. However, these studies were limited in scope and context, highlighting the need for further research in dynamic, tech-driven markets like Kenya.

Regionally, Otieno (2018) and Adugna (2017) examined selective distribution and physical distribution management in East Africa, highlighting positive impacts on competitiveness and sales performance. However, their focus on FMCGs and manufacturing sectors limits applicability to service-based industries like courier services. Ibama and Lolia (2024) explored exclusive distribution in Port Harcourt’s food and beverage sector, revealing strong links to customer loyalty and word-of-mouth referrals as key drivers of sustained engagement in competitive markets. Raza and Govindaluri (2021) identified three strategic pillars of omni-channel retailing: distribution network design, inventory and capacity management, and delivery execution all of which provide a useful framework for developing integrated, technology-enabled courier models. Based on this, the study hypothesized that:

• H01: Exclusive distribution strategy has no significant effect on the quality of service delivery

Intensive distribution Strategy and Service Delivery

Intensive distribution refers to a strategy aimed at maximizing product availability by distributing through as many outlets as possible, thereby enhancing accessibility and brand visibility (Kotler & Keller, 2018). Within Kenya’s dynamic logistics landscape, such a strategy holds particular relevance for service-driven industries like courier operations, where timeliness, convenience, and customer proximity are central to service delivery outcomes. Empirical research by Ombuiet al. (2024) examined the effects of intensive distribution on sales performance at Kenya Tea Packers (KETEPA) Ltd. Using a stratified random sample of 143 respondents across sales, marketing, transport, and logistics departments, their study revealed a statistically significant and positive correlation between intensive distribution and sales performance. Distribution tactics were found to account for 74% of the variation in performance outcomes. However, the study was narrowly focused on sales performance, neglecting service delivery as a core outcome variable, thereby revealing a conceptual gap.

Kusumawati (2018) corroborated the significance of intensive distribution in enhancing corporate image and client-based brand equity in the automotive sector, indicating that widespread availability fosters positive consumer perceptions and brand loyalty. Similarly, Suartinaet al. (2022), in a study on minimarket franchises in Bali, found that intensive distribution significantly improved brand love and loyalty. These findings underscore the strategic potential of this approach in reinforcing customer trust and satisfaction, key service delivery metrics in courier operations.

In South-Eastern Nigeria, Chukwumaet al. (2018) found that small and medium bakeries using intensive distribution achieved higher sales volumes, driven by the perishability of their products and limited promotional budgets. Their support for third-party distributors aligns with courier industry practices aimed at enhancing last-mile efficiency. Similarly, Mwanza and Ingari (2015) highlighted intensive distribution as a key competitive advantage in Kenya’s FMCG sector, where broad product availability boosted accessibility and market performance insights relevant to courier services prioritizing reach and reliability. In Poland, Karcz and Ślusarczyk (2016) reported that strategic distribution improvements raised a courier firm’s service effectiveness to 98.74%, underscoring the impact of optimized logistics. Janjevic and Winkenbach (2020) further emphasized the role of technology, such as real-time tracking and predictive analytics, in enhancing last-mile delivery, reducing costs, and improving customer satisfaction.

In underserved and geographically dispersed markets, intensive distribution enhances inclusivity. Varga and Rosca (2019) examined Bottom-of-the-Pyramid (BoP) models in countries like Ethiopia and Bangladesh, showing how intermediary organizations (IOs) help overcome logistical barriers by building decentralized, trust-based local networks an approach well-suited to fragmented courier markets. Adimo and Osodo (2017) found that using diverse distribution channels in Kenya’s tire industry reduced costs and improved performance, emphasizing the need to align distribution with customer accessibility. Similarly, Abaluck and Gruber (2016) observed a growing preference for digital and direct channels in the health insurance sector, driven by trust and convenience paralleling trends in courier services adopting app-based tracking and digital service points. In Kenya’s rural insurance market, Mainaet al. (2018) found that awareness and proximity to outlets significantly influenced service uptake. Collectively, these studies suggest that locally tailored intensive distribution strategies can improve service reach, reduce costs, and enhance customer engagement. Based on this review, the study hypothesized that:

• H02: Intensive distribution strategy has no significant effect on the quality of service delivery

Tracking Technology and Service Delivery

Technological advancements have significantly transformed logistics service delivery by improving transparency, efficiency, and customer satisfaction. Several studies have examined the relationship between tracking technologies, distribution strategies, and service outcomes. Oetamaet al. (2024), studying J&T Express in Indonesia, found that online tracking systems and timely delivery had a strong positive impact on customer satisfaction (R = 0.690, p < 0.01), with over half of satisfaction variability explained by these factors. This underscores the importance of integrating real-time tracking to build reliability and trust. Similarly, Nevon Projects (2023) evaluated courier tracking platforms such as GPSWOX, DeTrack, and Grap, showing that these technologies enhance route efficiency, delivery security, and customer confidence through real-time updates. While highlighting the operational benefits of tracking systems, this study did not explore their moderating role within broader distribution strategies, pointing to a key conceptual gap.

Kafile and Mbhele (2023) found that IoT technologies such as GPS tracking, RFID, and data analytics, significantly enhanced last-mile delivery performance for courier firms in Durban, improving quality, reducing costs, and boosting customer satisfaction. However, the study did not examine how these technologies interact with distribution strategies, revealing a conceptual gap addressed in the current research. Similarly, Banerjee, 2021 showed that the use of Make-in-Time (MiT) logistics in e-commerce reduced inventory costs and sped up deliveries, yet failed to explore the role of tracking technologies in coordinating these systems highlighting a methodological limitation. Lichtsteineret al. (2022), studying Swiss public service centers, found that IT tools such as mobile apps, kiosks, and web platforms enhanced service speed and accessibility, demonstrating the value of digital tools across sectors. Still, their moderating effect within logistics distribution strategies remains underexplored. Ponsignonet al. (2021) used a case study to show that modular service delivery systems improve flexibility, efficiency, and quality through scalable service components, but did not assess the integration of distribution strategies with tracking technologies. Lastly, Nwankwo and Ajemunigbohun (2016) found that electronic payments improved service delivery in Nigeria’s insurance sector. Although outside the logistics context, the study supports the broader role of digital solutions in customer satisfaction but lacks relevance to courier-specific systems.

Taken together, these studies affirm the critical role of tracking technology in shaping service delivery outcomes. Nevertheless, few have examined how distribution strategies, exclusive, intensive, or indirect interact with tracking systems to moderate or enhance courier performance. This study addresses this conceptual void by evaluating the combined effect of tracking technologies and distribution strategies for optimal service delivery in the courier sector. The ensuing review led to the generation of the following hypothesis:

• H03: Tracking technology has no significant moderating effect on the relationship between no exclusive distribution strategy, intensive distribution and quality of service delivery

Conceptual Framework

From the review of literature, the conceptual framework shown on Fig. 1 was derived. The predictor variables are exclusive distribution strategy and intensive distribution strategy, the outcome variable is service delivery and the moderating variable is tracking technology.

Fig. 1. Conceptual framework.

Materials and Methods

This study adopted a positivist research philosophy, grounded in the ontological assumption that social phenomena exist independently of human interpretation. Positivism supports an epistemological stance rooted in objectivity, enabling empirical observation and quantification of social constructs (Saunderset al., 2019). This approach is especially suited for studies examining causal relationships, such as the influence of distribution strategies and tracking technologies on courier service delivery. The research relied on structured questionnaires to collect data, allowing for objective measurement and statistical analysis, with minimal interference from the researcher’s values or biases (Park & Park, 2016). Ethical considerations, guided by axiological principles, were upheld through voluntary participation, confidentiality, and respect for respondents’ autonomy.

An explanatory research design was employed to assess causal linkages between the independent variable (distribution strategies), the moderating variable (tracking technology), and the dependent variable (service delivery). Explanatory designs are effective for testing theoretical models and hypotheses using inferential statistics (Saunderset al., 2019). This design aligns with prior logistics and service quality research (Ayeleet al., 2020; Mainaet al., 2018) and was appropriate for quantifying the interaction effects among the study variables. The study focused on Kenya’s Lake Region Economic Bloc, which includes Kisumu, Kakamega, Vihiga, Homa Bay, Busia, Bungoma, Migori, Nyamira, Kisii, and Siaya. The region was selected due to its high reliance on courier services, infrastructural limitations, and competition from informal logistics providers such as ‘Matatus’ and buses (Communications Authority of Kenya, 2022). The operational diversity within this region provides a suitable microcosm for understanding broader national trends in courier service performance.

The population of interest comprised customers of licensed courier service providers operating in Kenya. Based on CAK records (2020), 25 licensed providers existed during the study period, from which 12 firms were purposively selected based on their operational scale. The unit of analysis was the courier customer, and the unit of observation was the courier service firm. A multi-stage sampling technique was employed. First, quota sampling was used to segment respondents according to the 12 selected courier firms. Proportionate sampling was then applied to allocate sample quotas based on the number of branches operated by each firm. Finally, simple random sampling was utilized to select respondents within each quota, allowing for equitable and unbiased representation across the firms (Creswell & Creswell, 2018). Given the indeterminate size of the customer population, Cochran (1977)’s formula for infinite populations was applied in computing the sample size. This method is appropriate where population parameters are unknown, yet a high level of accuracy is required (Uarkanet al., 2021). A total of 426 respondents were proportionally distributed across the 12 courier companies according to branch representation.

Primary data were collected using structured, self-administered questionnaires. This instrument allowed for standardized responses and geographic flexibility while ensuring respondent anonymity (Bryman, 2016). The questionnaire consisted of demographic and study-specific variables aligned with the study objectives. Items were measured using a 5-point Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree). Content validity was established through expert review and a pilot study, ensuring that the instrument captured all relevant constructs.

To assess the dependability of the research instrument, reliability testing was conducted to determine the extent to which the questionnaire would yield consistent results upon repeated administrations (Heale & Twycross, 2015). Reliability, as noted by Saunderset al. (2019), is affected by random error, which includes factors such as inaccurate coding, respondent fatigue, and measurement bias. Internal consistency reliability was evaluated using Cronbach’s alpha coefficient, which determines whether the items within a scale consistently measure the same underlying construct (Awuoret al., 2023). In line with Ghozali (2016), a Cronbach's alpha value of 0.70 or higher was considered indicative of acceptable reliability. A pilot study was conducted with a sample of 49 randomly selected respondents from Speedaff Courier Service Company to test the instrument’s internal consistency prior to the main data collection phase. Pilot study data was utilized to enhance the questionnaire and participants from the pilot study were excluded from the study to mitigate against ecological validity. The reliability analysis of the questionnaire yielded Cronbach's alpha coefficients ranging from 0.722 to 0.843, all exceeding 0.7, so demonstrating strong internal consistency dependability of the scale's dimensions.

Research Results

The researchers secured institutional approvals and permission from participating courier service companies. Data collection was conducted using a drop-and-pick method facilitated by seven trained research assistants who adhered to professional and ethical standards. Informed consent was obtained from all participants, and the study followed established research ethics. After fieldwork, data was checked for completeness and prepared for analysis. Using SPSS version 24, both descriptive and inferential statistics were conducted. Out of the distributed questionnaires, 389 were returned, yielding a 94% response rate, well above the 70% threshold considered very good, according to Saunderset al. (2019).

Exclusive distribution strategies were assessed using mean score analysis. The highest-rated item, “The courier company offers same day and next day delivery services at extra cost,” had a mean of 4.13 (SD = 0.664), indicating widespread adoption of expedited delivery options viewed as reliable by clients. Customization also ranked highly, with the statement “Our delivery services are tailored to the clients’ needs” scoring a mean of 4.12 (SD = 0.704). Specialized handling of high-value, confidential, or fragile parcels followed closely (M = 4.10), while geographical zoning strategies also scored strongly (M = 4.09, SD = 0.626), reflecting efficient territorial management. The overall mean for exclusive distribution practices was 4.06, suggesting a high level of strategic implementation across the sector. These findings indicate that courier companies in Kenya emphasize speed, customization, and secure delivery. However, variation in responses suggests potential gaps in standardization or uniform adoption of exclusivity practices.

Intensive distribution strategies were assessed using mean score analysis. The highest-rated item, “The courier service company uses vans, riders, and specialized vehicles for delivery,” scored a mean of 4.44 (SD = 0.910), reflecting strong agreement on the use of diverse transport modes to enhance delivery coverage. “The company has presence in every town” followed with a mean of 4.26 (SD = 0.870), indicating widespread geographical reach—a key feature of intensive distribution. The overall average mean was 3.90 (SD = 0.991), showing general support for the presence of intensive distribution strategies, though with some variation across operational areas. These findings suggest that Kenyan courier companies have largely adopted intensive distribution through transport diversification and national presence. However, lower scores on service diversification and network redundancy point to potential areas for growth, particularly in underserved regions and niche markets. Strengthening these aspects could further enhance last-mile delivery and overall competitiveness in the sector.

Descriptive analysis was used to assess the role of tracking technology in courier services. The highest-rated item, “The technology used by the courier service company has enhanced courier time management,” recorded a mean score of 4.49 (SD = 1.09), indicating strong agreement that technology significantly improves operational efficiency, especially for time-sensitive deliveries. “The customer can track and trace the precise movement and location of the parcel/item” also scored highly (M = 4.06, SD = 1.088), highlighting the effectiveness of real-time tracking in enhancing transparency and customer confidence. “The company uses technology for parcel identification” followed with a mean of 3.93 (SD = 1.141), reflecting the widespread use of scanning and tagging systems for accurate consignment management. In contrast, the statement “The courier service company has introduced innovative products/development of new products and services” received the lowest mean score of 3.58 (SD = 1.807), suggesting limited perceptions of technological innovation and service diversification in the sector. The overall mean score of 3.90 (SD = 1.218) indicates generally positive views on the adoption of tracking technologies, though it also points to opportunities for enhancing innovation and expanding 24/7 service capabilities.

Correlation analysis was conducted to assess the correlation between distribution strategies, tracking technology, and service delivery. The results in Table I shows a strong, positive, and statistically significant correlation between intensive distribution strategy and service delivery (r = 0.736, p < 0.01), indicating that broader service coverage through multiple branches, diverse delivery vehicles, and wide customer reach enhances perceived service quality and efficiency. Exclusive distribution strategy also demonstrated a positive, moderate correlation with service delivery (r = 0.534, p < 0.01), suggesting that tailored services and zone-based operations contribute meaningfully to customer satisfaction. Tracking technology showed a weak but statistically significant correlation with service delivery (r = 0.121, p < 0.05). This weaker relationship may reflect inconsistent implementation across companies or limited customer engagement with advanced tracking features. Moreover, tracking technology was not significantly correlated with either exclusive (r = −0.026, p = 0.606) or intensive distribution strategies (r = 0.086, p = 0.091), indicating it operates independently of the distribution model adopted. These findings highlight the pivotal role of distribution strategies, particularly intensive distribution in driving service delivery performance in Kenya’s courier industry. They also point to the need for better integration of tracking technology into overall distribution frameworks to maximize its impact.

Table I. Correlations Between Distribution Strategy, Tracking Technology and Service Delivery

Variable		Exclusive distribution strategy	Intensive distribution strategy	Tracking technology	Service delivery
Exclusive distribution strategy	Pearson Correlation	1
	Sig. (2-tailed)
Intensive distribution strategy	Pearson Correlation	0.455**	1
	Sig. (2-tailed)	0.000
Tracking Technology	Pearson Correlation	−0.026	0.086	1
	Sig. (2-tailed)	0.606	0.091
Quality Service Delivery	Pearson Correlation	0.534**	0.736**	0.121*	1
	Sig. (2-tailed)	0.000	0.000	0.017
	N	389	389	389	389

The study subjected the cross-sectional data to Multiple Regression Analysis (MRA) to establish the nexus between exclusive distribution strategy, intensive distribution strategy, tracking technology and quality of service delivery. Assuming a linear link between distribution strategy and quality of service delivery, the study used the Ordinary Least Squares (OLS) technique of estimation and generate a regression line of best fit. The study used the estimated model shown in Eqs. (1) and (2) below.

(1) $$\begin{array}{rcl}Y& =& \beta 0+\beta 1X1+\beta 2X2\\ & & +\epsilon \dots \text{unmoderated}\text{equation}\end{array}$$

(2) $$\begin{array}{rcl}Y& =& (\beta 0+\beta 1X1\times T+\beta 2X2\times T)+MX3\\ & & +\epsilon \dots \text{moderated}\text{equation}\end{array}$$

where

Y – quality of service delivery

β₀ – constant

β_1-2 – coefficients

X₁ – exclusive distribution strategy

X₂ – intensive distribution strategy

X₃ – tracking technology

M – coefficient of tracking technology

Preceding the MRA, the data set was tested for the assumption of regression analysis including; linearity test, test of existence of outliers, normality test, multicollinearity test, and homoscedasticity, with no major violation reported, the data was assumed to be fit for regression analysis. The study adopted a stepwise MRA, in examining the unmoderated coefficient of determination (R²). The unmoderated model had an R² = 0.592, which was interpreted to mean that the model predicted by exclusive distribution strategy and intensive distribution strategy explained 59.2% of the variance in quality of service delivery and provided a moderately good fit, according to (Frost, 2020). The ANOVA (Analysis of Variance) results of the model associated with exclusive distribution strategy and intensive distribution strategy were highly significant (p = 0.001), in explaining the variations in quality of service delivery. Subsequently, the resulting coefficients associated the model (2) that combined exclusive distribution strategy and intensive distribution strategy as shown in Table II, were examined.

Table II. Coefficients of Unmoderated Model

Model		Unstandardized coefficients		Standardized coefficients	t	Sig.
		B	Standard error	Beta
1	(Constant)	1.531	0.176		8.678	0.000
	Exclusive distribution strategy	0.581	0.047	0.534	12.439	0.000
2	(Constant)	0.573	0.145		3.956	0.000
	Exclusive distribution strategy	0.273	0.040	0.251	6.882	0.000
	Intensive distribution strategy	0.595	0.035	0.621	17.007	0.000

The results in Table II, shows that exclusive distribution strategies had statistically significant positive effect (p = 0.000) on the quality of service delivery, and therefore the null hypothesis (H01) was rejected at 95% confidence and the study adopted the alternative hypothesis that exclusive distribution strategies had statistically significant effect on the quality of service delivery. The results also show that intensive distribution strategies had a statistically significant positive effect (p = 0.000) on the quality of service delivery and the null hypothesis (H02) was rejected at 95% confidence and the study adopted the alternative hypothesis that intensive distribution strategies had a statistically significant effect on the quality of service delivery. Therefore, both exclusive and intensive distribution strategies have statistically significant positive effects on the quality of service delivery. The intensive distribution strategy shows a stronger influence, as indicated by the higher coefficient (β = 0.595), followed by exclusive strategy (β = 0.273). These results support the pivotal role of tailoring distribution strategies to enhance customer service outcomes in Kenya's courier industry.

The study adopted a three step hierarchical multiple regression in determining the moderating effect of tracking technology on the relationship between exclusive distribution strategy, intensive distribution strategy and quality of service delivery. Step one examined the effect of exclusive distribution (EDS) on quality of service delivery. In step two EDS and intensive distribution strategy (IDS) were regressed against quality of service delivery. In the final step, hypothesis three (H03) was tested. The interaction effect was determined by regressing exclusive distribution strategy*Tracking technology, intensive distribution strategy*Tracking technology and tracking technology against quality of service delivery. The study tested the following two hypothesis;

• H01: Exclusive distribution strategy has no significant effect on the quality of service delivery

• H02: Intensive distribution strategy has no significant effect on the quality of service delivery

In order to test H03, the two hypotheses above were tested in moderated form via interaction terms:

EDS*T (Exclusive Distribution Strategy × Tracking Technology)

ITDS*T (Intensive Distribution Strategy × Tracking Technology)

The results in Table III indicate that tracking technology has a significant positive direct effect on service delivery (β = 0.189, p = 0.002), suggesting that improvements in tracking systems enhance service quality. The interaction between exclusive distribution and tracking technology (EDS × T) also showed a significant positive moderating effect (β = 0.092, p < 0.001), indicating that tracking technology strengthens the impact of exclusive distribution on service delivery. As a result, the study rejected H01. Similarly, the interaction between intensive distribution and tracking technology (ITDS × T) yielded a significant positive effect (β = 0.070, p < 0.001), leading to the rejection of H02. Based on these findings, H03 was also rejected, confirming that tracking technology significantly moderates the relationship between both distribution strategies and service delivery. Overall, these results highlight the importance of integrating digital tracking systems to enhance the effectiveness of both exclusive and intensive distribution strategies, ultimately improving service delivery in the courier industry.

Table III. Coefficients of Moderated Model

Model		Unstandardized coefficients	Standardized coefficients		t	Sig.
		B	Standard error	Beta
1	(Constant)	1.812	0.084		21.656	0.000
	EDS*T	0.140	0.006	0.767	23.497	0.000
2	(Constant)	1.675	0.087		19.150	0.000
	EDS*T	0.118	0.008	0.646	15.379	0.000
	ITDS*T	0.030	0.007	0.185	4.390	0.000
3	(Constant)	2.224	0.193		11.530	0.000
	EDS*T (interaction)	0.092	0.011	0.501	8.090	0.000
	ITDS*T (interaction)	0.070	0.014	0.428	4.915	0.000
	Tracking Technology (main)	0.189	0.060	0.210	3.180	0.002

Discussion

The first research objective examined the effect of exclusive distribution strategy on service delivery quality. The findings indicate that exclusive distribution practices are widely adopted and positively perceived within Kenya’s courier industry. Respondents strongly agreed that expedited delivery options (same-day and next-day delivery at extra cost) and service customization (tailored to client needs) are the most effective strategies, reflecting strategic resource deployment aimed at enhancing reliability and responsiveness. However, greater variability was noted in the implementation of regional exclusivity and key account management, suggesting inconsistency across firms. The overall mean score of 4.06 indicates strong industry alignment toward exclusivity-oriented practices. Correlation and regression analyses confirmed a significant positive relationship between exclusive distribution and service delivery quality, supporting the rejection of the null hypothesis. These results align with global logistics research, such as Tanget al. (2024), who found that logistics service capabilities particularly responsiveness and reliability drive customer satisfaction in e-commerce. They also echo Adugna (2017), who reported that exclusive distribution and physical distribution management significantly influenced performance in East Africa’s FMCG sector. The findings are further supported by the Resource-Based Theory (RBT), which asserts that sustainable competitive advantage stems from resources that are valuable, rare, inimitable, and non-substitutable. Exclusive distribution strategies, therefore, can be viewed as firm-specific capabilities under RBT, linking strategic resource configurations to superior service quality and long-term competitive differentiation in the courier industry.

The second research objective explored the influence of intensive distribution strategies on service delivery quality. Descriptive analysis revealed that courier firms in Kenya have strongly adopted key elements of intensive distribution. The most highly rated strategy was the use of diverse transport modes like vans, riders, and specialized vehicles, highlighting the role of transportation variety in achieving wide and efficient coverage. The high mean score for “presence in every town” further reflects a strong emphasis on geographical penetration, a core feature of intensive distribution. The overall mean score of 3.90 indicates general agreement on the use of intensive strategies, though with some variation across firms. Correlation analysis showed a strong, statistically significant relationship between intensive distribution and service delivery quality. Regression analysis confirmed a significant positive effect, suggesting that wider service presence, transportation diversity, and market reach enhance customer satisfaction and service efficiency. These findings align with studies like Lee and Yu (2021), who reported that intensive distribution improves responsiveness and accessibility in e-commerce logistics. From a Resource-Based Theory (RBT) perspective, infrastructure supporting intensive distribution such as vehicle fleets, physical branches, and service networks represents valuable, rare, and inimitable resources. These capabilities contribute to sustainable competitive advantage by enabling courier firms to deliver fast, reliable, and customer-focused services in a dynamic market environment.

The third objective of the study examined the moderating role of tracking technology in the relationship between distribution strategies and service delivery quality. Descriptive analysis indicated generally positive perceptions of tracking technologies. The highest-rated item, “The technology used by the courier service company has enhanced courier time management”—underscored the role of digital tools in boosting operational efficiency, followed by strong ratings for real-time tracking and parcel identification systems. However, lower scores for innovation and 24/7 service availability suggest uneven adoption of more advanced technologies across the sector. Correlation analysis revealed a weak but statistically significant relationship between tracking technology and service delivery, implying that while core technologies are widely used, their strategic application varies or remains limited beyond basic functions. Multiple regression analysis (MRA) provided deeper insights, confirming that tracking technology has a significant positive direct effect on service delivery quality. Moreover, interaction terms for both exclusive and intensive distribution strategies were statistically significant and positive, indicating that tracking technology strengthens the effectiveness of these strategies. These findings align with studies by Oetamaet al. (2024) and Kafile and Mbhele (2023). who found that real-time tracking and IoT-based solutions enhance delivery reliability, reduce costs, and improve customer satisfaction.

Overall, the findings highlight that although the implementation of tracking technologies may vary, their strategic integration significantly enhances the effectiveness of both exclusive and intensive distribution strategies. This aligns with the Economic Distribution Channel Theory, which emphasizes efficiency, cost reduction, and utility maximization within distribution systems. As a moderating factor, tracking technology helps minimize coordination inefficiencies, improve time management, and increase visibility across the supply chain—key elements in delivering economic value. Integrating such technologies into distribution strategies not only boosts firm-level logistics performance but also improves the overall efficiency of the distribution channel, leading to greater customer satisfaction and service competitiveness in the courier industry.

Conclusion

In conclusion, the study found a positive and statistically significant relationship between exclusive distribution strategies and service delivery quality. Practices such as expedited delivery, customized client solutions, geographical zoning, and specialized handling of high-value goods were widely adopted and well-received, contributing to enhanced reliability, responsiveness, and customer satisfaction. From RBT perspective, these strategies represent valuable, rare, and firm-specific capabilities that provide a sustainable competitive advantage in the logistics sector. Similarly, intensive distribution strategies significantly improved service delivery by expanding geographic reach and utilizing diverse transportation modes, thereby increasing accessibility and responsiveness. These strategies also align with RBT, positioning them as critical assets for achieving competitive service performance. The study further concluded that tracking technology plays a significant moderating role in enhancing the effectiveness of both exclusive and intensive distribution strategies. By improving operational efficiency, delivery accuracy, and real-time visibility, tracking technology strengthens the overall impact of distribution strategies leading to improved customer satisfaction and service competitiveness in the courier industry.

Recommendations

The study recommends that policymakers develop supportive policies and guidelines to encourage the adoption of exclusive distribution strategies, such as expedited delivery and specialized handling of fragile or high-value consignments through mechanisms like tax incentives, infrastructure investment, and certification programs. These initiatives would help establish consistent quality standards across the courier industry and enhance nationwide service excellence. Additionally, policies should prioritize infrastructure development in underserved regions to enable broader geographic coverage and ensure equitable access to courier services. The study also urges the formulation and enforcement of national guidelines and incentives to promote the widespread adoption of advanced tracking technologies, thereby improving customer experience and operational efficiency across the sector.

It is recommended that courier service managers prioritize the development of tailored distribution services such as same-day delivery, zonal routing, and secure handling of sensitive items, as strategic differentiators. When aligned with the Resource-Based Theory (RBT), these capabilities can serve as valuable, rare assets that provide sustainable competitive advantage and boost customer retention. Managers should also invest in diversified delivery fleets and strategically expand branch networks to improve service coverage, efficiency, and responsiveness across various customer segments. Additionally, integrating advanced tracking systems is essential, not only for parcel monitoring but also for enhancing customer engagement, enabling real-time communication, and supporting data-driven decision-making to optimize delivery performance and satisfaction.

Academics are encouraged to further investigate the role of exclusive distribution strategies within broader strategic management frameworks in the logistics sector, particularly in developing economies. While this study was cross-sectional, future longitudinal or comparative research across regions could provide deeper insights into how these strategies evolve and interact with technological and regulatory factors to influence service performance. Additionally, further studies should examine how intensive distribution integrates with emerging technologies such as IoT and customer segmentation to enhance last-mile delivery effectiveness in emerging markets.

Limitations

The study encountered several limitations. First, it purposively selected 12 major courier service providers in Kenya, excluding smaller players. This may introduce selection bias and limit the generalizability of the findings across the broader industry. Second, data collection relied solely on a structured questionnaire, which may have restricted the depth and richness of responses typically captured through unstructured or qualitative tools. Third, the study adopted a cross-sectional design, capturing insights at a single point in time. A longitudinal approach could offer more comprehensive insights by tracking changes and trends over time. Lastly, the study focused exclusively on intensive and exclusive distribution strategies, excluding other potentially relevant approaches. Including a broader range of distribution strategies in future research could yield more diverse and informative outcomes.

Conflict of Interest

Conflict of Interest: The authors declare that they do not have any conflict of interest.