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INFLUENCE OF SUPPLIER MANAGEMENT ON PROCUREMENT PERFORMANCE IN SELECTED COUNTY GOVERNMENTS IN KENYA

 

Isaac Kigen

Masters of Science in Procurement and Logistics

Jomo Kenyatta University of Agriculture and Technology, Kenya

 

Dr. David Kiarie Mburu

Department of Procurement and Logistics,

Dedan Kimathi University of Technology, Kenya

Dr. Makori Moronge

Jomo Kenyatta University of Agriculture and Technology, Kenya

 

CITATION: Kigen, I., Mburu, D., M., Moronge, M. (2017). Influence Of Supplier Management On Procurement Performance In Selected County Governments In Kenya. International Journal of Human Resources and Procurement. Vol. 6 (5) pp 117 – 151.

 

ABSTRACT

 

This study sought to establish the influence of supplier management on procurement performance in devolved governments in Kenya. The study was guided by the following specific objectives: to assess the influence of supplier selection strategies on procurement performance in devolved governments, to determine whether supplier contracting on procurement performance in devolved governments, to establish whether supplier relationship management influence procurement performance in devolved governments and to explore whether supplier development affect procurement performance in devolved governments. The study is built on the Auction Theory, Compliance Theory, Scientific management Theory and Agency Theory. Descriptive research design was used for the study. The target population for this study was procurement personnel from the six counties (Kisii, Migori, Vihiga, Kericho, Kwale and Isiolo). The conceptual framework comprised of the independent variables or exploratory variables which are the presumed cause of changes in the dependent variable and the dependent variable also called the criterion or predictor variable which the researcher wishes to explain. The conceptual framework was developed which depicts the relationship between variables in the study and shows the relationship graphically or diagrammatically. Here, diagrammatically it illustrates the interaction between the independent variables and the dependent variable in the study. Specific literature relating on each of the variables follows thereafter. There were 90 employees working in procurement department as they were arguably in a better position to answer the question in order to address the research problem. The respondents included procurement managers, procurement officers, procurement assistants and clerical officers in the department. Primary data was collected using questionnaires by use of the census survey technique. The quantitative data was entered into SPSS 22 for analysis. Both quantitative and qualitative data analysis techniques were used. Quantitative data was analyzed using descriptive statistics while qualitative data was analyzed by the use of the content analysis. Descriptive statistics such as percentages, means and standard deviations were used to analyze the data while inferential statistics such as correlation and regression analysis was used to test on the relationship between the variables of the study where multiple regression model was used at 5% level of significance Tables, graphs and charts were used to present the findings of the study. The study findings show the regression model of Procurement Performance coefficient of determination R Square was 0.632 and R was 0.795. The coefficient of determination R Square indicated that 63.20% of the variation on Procurement Performance could be explained by the set of independent variables namely; Supplier Selection Strategies, Supplier Contracting, Supplier Development, Supplier Relationship Management. The remaining 36.80% of variation in Procurement Performance can be explained by other variables not included in this model. The study contributes to the existing literature in the field of procurement by elaborating exiting theories, models and empirical studies on role of supplier management on procurement performance. The current study should therefore be expanded further in future in order to determine the effect of legal framework, supplier payment, supplier training on procurement performance in county governments. Existing literature indicates that as a future avenue of research, there is need to undertake similar research in other counties in Kenya and other countries in order to establish whether the explored factors of supplier management can be generalized to affect procurement performance in county governments.

KEY TERMS; Public Procurement Management, Procurement Performance, Supplier Selection, Supplier Development, Supplier Payment

 

 

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