EFFECT OF PROCUREMENT OUTSOURCING ON PROJECT PERFORMANCE OF NON-GOVERNMENTAL ORGANIZATIONS IN KENYA; A CASE OF DEVELOPMENT ALTERNATIVE INC. (DAI)

Mohammed Abdilatif

Abstract


The need to respond to market changes on a daily basis and the difficulty of predicting the direction of such changes mean that organizations must focus on their core competences and capabilities. With the increasing globalization, outsourcing has become an important business approach, and a competitive advantage may be gained as products or services are produced more effectively and efficiently by outside suppliers. This study sought  to establish the effect of procurement outsourcing on project performance of non-governmental organizations case study of Development Alternative Inc (DAI).The organization was chosen for study because its nearness to the researcher, accessibility and time limit. The study adopted descriptive research design. The study targeted 288 employees of Development Alternative Inc. The study sample of 87 respondents was from the population composed of DAI senior, middle and lower level management as well as the general staff. The primary data was collected through the use of questionnaires and secondary data was obtained from published documents such as journals, periodicals, magazines and reports to supplement the primary data. A pilot study was conducted to pretest the validity and reliability of instruments for data collection. The raw information was analyzed to yield qualitative and quantitative data. Quantitative data was analyzed with help of SPSS version 21 and MS excel. The variables were regressed and study findings showed that independent variables significantly and positively influenced project performance. Supplier competence was the most significant factor and had a positive significant relationship at 5% level of significance.      

Key Words: Procurement, Outsourcing, Project Performance, Non-Governmental Organizations

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