INFLUENCE OF STRATEGIC PURCHASING ON PERFORMANCE OF PUBLIC HOSPITALS IN NAIROBI COUNTY, KENYA

Jared Onsoti Rangeria

College of Human Resource and Development,

Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya

Corresponding Author email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Dr. Samson Nyang’au Paul

College of Human Resource and Development,

Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya.

CITATION: Rangeria, J., O. & Paul, S., N. (2018). Influence of Strategic Purchasing On Performance of Public Hospitals in Nairobi County, Kenya. International Journal of Strategic Management. Vol. 7 (3) pp 26 – 45.

ABSTRACT

The purpose of the study was to examine the influence of strategic purchasing management on the performance of public hospitals in Nairobi County with an aim of making recommendations on proper use of strategic purchasing management practices. The study aimed at establishing how vendor optimization, outsourcing, information technology adoption and vendor managed inventory influence performance of public hospitals. To achieve this, the researcher reviewed both theoretical and empirical literature and proposed the research methodology that addressed the gaps identified in literature as well as answer the stipulated research questions. This research study adopted a descriptive research design approach. The researcher prefers this method because it allows an in-depth study of the subject. To gather data, structured questionnaire was used to collect data from 72 staff in procurement, finance and ICT departments from the three biggest public hospitals in Nairobi County; Kenyatta National Hospital, Mama Lucy Kibaki Hospital and Mbagathi District Hospitals. The target population was first stratified then using simple random sampling among the three strata, select the samples. Once collected, data was analyzed using descriptive and inferential statistics. Quantitative data was analyzed using multiple regression analysis. The qualitative data generated was analyzed by use of Statistical Package of Social Sciences (SPSS) version 20. The response rate of the study was 94.44%. The findings of the study indicated that vendor optimization, outsourcing, information technology adoption and vendor managed inventory have a positive relationship with performance in the public hospitals. Finally, the study recommended that public institutions should embrace strategic purchasing management so as to improve performance and further researches should to be carried out in other public institutions to find out if the same results can be obtained.

Key words: Vendor Optimization, Outsourcing, Information Technology Adoption, Vendor Managed Inventory, Performance of Public Hospitals

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