INFLUENCE OF SUPPLIER SELECTION CRITERIA ON PERFORMANCE OF PUBLIC CORPORATIONS IN KENYA: A CASE OF WATER RESOURCES AUTHORITY
Abstract
Supplier selection criteria has in the recent years presented dilemma in the public and private procurement processes. Water Resource Authority (WRA), a public corporation in Kenya has experienced shortfalls in performance amidst the implementation of procurement plans over the past several years. This study established the influence of supplier selection criteria on the performance of public corporations in Kenya, using a case of the WRA. The specific objectives of the study were: to establish the influence of supplier regulatory compliance assessment on performance of the WRA, to find out the influence of E-procurement capacity, to determine the influence of supplier quality assurance and to establish the influence of management capacity on organizational performance of the Water Resources Authority (WRA). The study adopted a descriptive case study design and a census survey methodology targeting all the 55 members of the target population which included all the senior WRA departmental heads and other administrative staff. A closed ended questionnaire was used for primary data collection. The researcher carried out a pilot test of the study involving 10 research subjects on the research instrument before administering the instrument to the entire study population. Due to the COVID-19 restrictions in Kenya, the questionnaires were emailed to the respondents through their official emails. The respondents filled and returned back the filled questionnaires through the same format. Data collected was analysed using SPSS and presented using tables and descriptive statistics. The study findings showed a significant influence of supplier regulation compliance on the performance of the Water Resources Authority. The study also established a significant correlation between E-procurement compliance and performance of the Water Resources Authority. Additionally, the study established that there existed a significant influence of supplier quality assurance and supplier management capacity on the performance of the Water Resources Authority. The study would inform the WRA’s board of management decision making. Additionally, the knowledge derived would be cascaded downwards to the regional implementing WRA branches for sound supplier selection criteria practices.
Key words: Supplier Selection, Criteria, E-Procurement, Regulatory Framework, Management Capacity, Quality Assurance Compliance
CITATION: Mutuku, S. M., Ochieng, V. O., &Sang, W. (2021). Influence of supplier selection criteria on performance of public corporations in Kenya: A case of Water Resources Authority. The Strategic Journal of Business & Change Management, 8 (4), 372 – 387.
Full Text:
PDFReferences
Cherop, P. J. (2016). Procurement practices influencing project implementation in public institutions in Kenya: Case of Kenya Electricity generating Company. Journal of Business and Management, 18(5), 47-71.
Farah, M. A. (2013). Lean supply chain management practices and organizational performance in the public water sector in Kenya. Unpublished MBA Project, University of Nairobi.
Kalau, M. E. (2016). E-procurement strategies and the performance of Kenya owned parastatals. Doctoral Dissertation, University of Nairobi.
Kennedy, K.M. & Kiarie, D. (2015). Influence of procurement practices on organization performance in private sector in Kenya: a case study of Guaranty trust bank Kenya Ltd’. International Journal of Business & Law Research, 3(2), 44-60.
Maina, J. N., & Moronge, M. (2018). Effect of supplier appraisal policy on procurement performance in state corporations in Kenya: A case of Kenya Medical Supplies Authority. Strategic Journal of Business & Change Management, 5(2).
Makori, J. K., & Muturi, W. (2018). Influence of inventory management practices on performance of procurement function in health institutions in Kenya. A survey of selected public health institutions in western Kenya. International Journal of Social Sciences and Information Technology, 4(10).
Maraka, K., Kibet, Y. and Mike, I. (2011). Effects of supplier relationship management on the performance of organizations in selected sugar companies in western Kenya. Journal of Economics and Finance, 6, (3), 28-35.
Mbuchi, K. M., & Wasira, J. (2016). Influence of supplier prequalification criteria on procurement performance at Kenya rural roads authority in the county government of Nyabira. Iosr Journal of Business and Management, 18(08), 85–100. Https://doi.org/10.9790/487x-18080485100.
Mokogi, W., Mairura, C., & Ombui, K. (2015). Effects of procurement practices on the performance of commercial state-owned enterprises in Nairobi County. International Journal of Scientific and Research Publications, 5(6), 2250-3153.
Murigi, M. P. (2014). Influence of supplier appraisal on procurement performance in the real estate industry in Kenya: A case study of international house ltd. International Journal of Operations and Logistics Management, 3(3), 250-262.
Musau, E. G. (2015). Environmental factors affecting procurement performance in county governments: A case of Uasin Gishu County. International Journal of Business and Management Invention, 4(1), 50-59.
Mwangi, L. W., & Kwasira, J. (2015). Assessment of effects of ethical practices on performance of procurement function in state corporations: a case of state regulatory agencies in Nairobi County, Kenya. Int. J. Econ. Commer. Manag, 3(10), 485-499.
Mwikali, R., & Kavale, S. (2012). Factors affecting the selection of optimal suppliers in procurement management. International Journal of Humanities and Social Science, 2(14), 5.
Ndunge, M. C. (2016). E-procurement and performance of government ministries in Kenya. University of Nairobi, 1-55.
Ngunyi, I. W. (2014). Procurement practices and the performance of parastatals in Kenya. Doctoral Dissertation, University of Nairobi.
Nyaribo, Okong‘o, & Muturi. (2017). Factors affecting procurement performance in Public institutions in Kenya: A survey of public institutions in kisii county | request pdf. Https://www.researchgate.net/publication/316479698_factors_affecting_procurement_performance_in_public_institutions_in_kenya_asurvey_of_public_institutions_in_kisii_county.
Odhiambo, A. C., & Theuri, F. S. (2015). Effects of Public Procurement Processes on Organization Performance. International Journal of Scientific and Research Publications, 5(9), 6.
Odhiambo, V. A. (2015). Supplier selection practices and procurement performance in Nairobi City County. Doctoral dissertation, University of Nairobi.
Ogohi, D. C. (2014). Analysis of the performance of public enterprises in Nigeria. European Journal of Business and Management, 6(25), 24-32.
Onyango, P. O., & Muturi, w. (2016). Effects of procurement procedures on operational performance of private institutions in Kenya. 8.
Samoei, A. K., & Ndede, F. (2018). Adoption of e-procurement and financial performance of ministry of education, science and technology, Kenya Doctoral dissertation, Kenyatta University.
Chege, L. W. (2015). Role of E-procurement strategy in enhancing procurement performance in state Corporations in Kenya. a case of Kenya Urban Roads Authority. Masters Project, Mount Kenya University.
Shiati, M. M., Kibet, Y., & Musiega, D. (2014). Determinants of supplier selection on the performance of public institutions in Kenya: Case of Kakamega County, Kenya. International Journal of Management Research and Reviews, 4(5), 542.
Sunday, A. O., Olaniyi, D. E., & Mary, F. O. (2015). The influence of recruitment and selection on organizational performance. International Journal of Advanced Academic Research-Social Sciences and Education. http://www.ijaar.org.
Thanga, l. W., & Kwasira, J. (2016). Influence of technical capacity of special interest group suppliers on performance of public procuring entities: A survey of the county government of Nakuru, Kenya. 7.
Wachiuri, E. W. (2019). Influence of supplier evaluation criteria on the performance of state corporations in Kenya. Doctoral dissertation, JKUAT-COHRED.
Wahu, K. E., Namusonge, G. S., Mungai, c., & Chilion, O. (2015). Factors affecting performance of the procurement function in Kenyan public secondary schools: a case study of Gatundu district. International journal of academic research in business and social sciences, 5(4), 273-285. Https://doi.org/10.6007/ijarbss/v5-i4/1572
Waweru, L. (2015). Supplier selection criteria and supply chain performance in non-governmental organisations in Kenya. European journal of business and management, 7, 18.
Wambui, N. H. (2015). Supplier selection criteria and supply chain performance in non-governmental organizations in Kenya. 66. (The upper i.e. Waweru L. is the correct author. Kindly check).
Wanyoike, R. W. (2016). Quality management practices and firm performance among manufacturing firms in Kenya. Unpublished PHD Thesis (Human Resource Management, Kenyatta University, Kenya.
Willy, K., & Njeru, A. (2014). Effects of procurement planning on procurement performance: a case study of agricultural development corporation, Nairobi. International Journal of Business and Commerce, 3(12), 58-68.
WRA, (2019). Water resources authority (WRA). Https://wra.go.ke/about/about-wra/
DOI: http://dx.doi.org/10.61426/sjbcm.v8i4.2106
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.