EFFECT OF SOURCING PRACTICES ON PROCUREMENT PERFORMANCE IN STATE CORPORATIONS IN KENYA: A CASE OF KENYA BUREAU OF STANDARDS (KEBS)
Abstract
The general objective of the study was to determine the effect of sourcing practices on procurement performance in state corporations in Kenya, with specific reference to the Kenya Bureau of Standards. The study called for a descriptive survey as the study concentrated in one firm. The target population was all the 308 employees of KEBS working at the head office along Popo road off Mombasa road, Nairobi. It was however not possible to use all the members of the target population raising a need to use a sample of the target population because of the homogeneity of this group of respondents. The study used stratified random sampling to avoid biases. The study used 172 respondents though the analysis which was done using 142 respondents giving a response rate of 82.56%. The study used structured questionnaires in collecting the data. The collection used drop and pick method for administering the questionnaires. The study found a direct relationship between multiple sourcing, green sourcing and global sourcing with performance of procurement department as well as an inverse relationship between single sourcing and performance of the procurement department. It was noted that organizations had gone beyond sticking to a single sourcing strategy but had embraced the contingency approach where they were using the most suitable strategy at a time and using other strategies where they best applied. It was however noted that there were still a number of grey areas in theory and practice especially as regards the involvement of the levels of the organizations and the user departments in the process as well as a clearly defined method of determining the most suitable strategy at any given time. The researcher therefore recommended that the organizations should involve all levels in procurement even where they were using single sourcing and global sourcing was used. It should also be noted that organizations should go beyond mere following of procurement rules as these are bare minimums and more effort need to be put in place beyond the laws and regulations to ensure performance.
Key terms: Public Procurement, Rationalization, Standards Tribunal, Sourcing, Procurement, Procurement Regulation, Audit, Supplier, Strategic advantage
Full Text:
PDFReferences
Achonjo E. (2014), The Impact of Outsourcing on the performance of parastatals in Kenya, University of Nairobi.
Akoth C. (2014). E-procurement and organizational performance of non-governmental organizations in Nairobi, Kenya.
Awuondo, C., & Abdikadir H. (2013). Report of the Presidential Task Force on Parastatal Reforms, Government Printer.
Braunscheidel J., Hamister W., Suresh C., & Star H., (2011). “An Institutional Theory perspective on Six Sigma adoption”, International Journal of Operations & Production Management, Vol. 31 No. 4, pp. 423-451.
Brammer, S., & Walker, H. (2011). Sustainable procurement practice in the public sector: An international comparative study. International Journal of Operations and Production Management, 31(4): 452-476.
Branco, MC., & Rodrigues LL. (2007). Positioning stakeholder theory within the debate on corporate social responsibility. Elect J Business Ethics Organization Stud. 12:5-15.
Clark, V. L. P., & Creswell, J. W. (2014). Understanding research: A consumer's guide. Pearson Higher Ed.
Collis, J. & Hussey, R. (2009) Business Research: A practical guide for undergraduate and postgraduate students, 3rd edition, New York, Palgrave Macmillan.
Cousins, P., Lamming, R., Lawson, B. & Squire, B. (2008) Strategic Supply Management: Principles, Theories and Practice, London: Financial Times/Prentice Hall.
Drauz, R., Kasperk, G., & Von Mangoldt, J. (2013). Mixing push and pull for survival in China: value stream mapping in an automotive case study. International Journal of Applied Management Science 3, 5(3), 234-250.
Freeman, J., & Minow, M. (2009). Government by contract: Outsourcing and American democracy. Harvard University Press.
G.O.K, (2010). Public Procurement and Asset Disposal Act. Government Printer
Gwako, Z. (2008). Supply chain performance measurement in the aviation industry: a case study of Kenya airways ltd.
Hamel., & Wirtz, B. W. (2010). Business model management. Gabler, Wiesbaden.
Harris, L., & Brown, G. (2010). Mixing Interview and Questionnaire Methods: Practical Problem in Aligning Data. Practical Assessment. Research and Evaluation, 15 (1), 1-19.
Hayes, S. I. (2012). Outsourcing Development. Oxford Univesity Press: Oxford.
Hutzschenreuter, T., Lewin, A. Y., & Dresel, S. (2011). Governance modes for offshoring activities: A comparison of US and German firms. International Business Review, 20(3), 291-313.
Irungu, W. A. (2012). Influence of information and communication technology on performance of aviation industry: A case of Kenya Airways Ltd. Nairobi, Kenya.
Jensen, P. D., Pedersen, T., Bals, L., & Larsen, M. M. (2014). The Offshoring Challenge. Springer.
Kebaso N, Kiarie D and Ogollah K. (2014), Effects of outsourcing strategy on procurement performance among universities in Kenya, International Journal of Economics, Commerce and Management, Vol II Issue 11 pgs 1 - 40
KEBS - Strategic plan for the planning year 2012 – 2017
Kenneth L. & Brian F. (2006). Purchasing and supply chain management, (7th edition). England: Version education ltd.
Kiptum D. (2014). Analysis of Effects of Outsourcing on Organizational Productivity in Selected Parastatals in Kenya. Kabarak University.
Knight V. (2010). Is local authority procurement ‘lean’? An exploration to determine if ‘lean’can provides a useful explanation of practice. Journal of Purchasing and Supply Management, 16(1), 41-50.
Kothari C. (2004). Research Methodology: Methods and Techniques (2nd Revised edition). New Delhi: New Age International (P) Ltd.
Kwong W., Zillante, G., Chan, A. P., Zuo, J., & Xia, B. (2012). Selection of project procurement methods in the consumer electronics industry. Hong Kong study. International Journal of Procurement Management, 5(3), 289-315.
Lampel, J., Bhalla, A., & Vishnu, K. (2010). Wipro Consulting Services: Building an Effective Global Configuration in Business and IT Consulting Industry. Asian case research journal, 14(01), 1-30.
Laplume, A., Sonpar, K., & Litz, R. A. (2008). Stakeholder Theory: Reviewing a Theory That Moves Us. Journal of Management, 34(6), 1152–1189.
Lee, S. M., Kim, S.T., & Choi, D. (2012), “Green supply chain management and organizational performance”, Industrial
Management & Data Systems, Vol. 112, No. 8, pp. 1148 – 1180.
Mamiro, R. G. (2010). Value for Money. The Limping Pillar in Public Procurement.
McKinsey H, Dutta, S., & Mia, I. (2010). The global information technology report 2009–2010. In World Economic Forum and INSEAD, SRO-Kundig Geneva, Switzerland.
Mogire E. (2011). Supply Chain Management Practices in Five Star Hotels in Kenya. University of Nairobi.
Mugenda, O. M. & Mugenda. A. G (2008). Research Methodology – Business Research Methods
Mukherji, S., & Ramachandran, J. (2007). Outsourcing: Practice in search of a theory. IIMB Management Review, 19(2), 103-110.
Mwirigi, P. (2007). Green Supply Management Practices by manufacturing firms in Kenya. University of Nairobi.
Nackman, M. F. (2010). Critical Examination of Offsets in International Defense Procurements: Policy Options for the United States, A. Pub. Cont. LJ, 40, 511.
Ngunyi I. (2014). Procurement Practices and the Performance of Parastatals in Kenya. University of Nairobi.
Njagi, L. K. & Malel, J., (2012). Time Management and Job Performance in Selected Parastatals in Kenya
Ogechi, N. O. & Nyameino, C. (2010). Competitive sourcing of chief executives. The case of universities in Kenya. Paper on Leadership and Management for Sustainable Development, UNISA Graduate School of Business Leadership (SBL), Midrand, South Africa, 6-8 October 2010.
Parmar, B. L., Freeman, R. E., Harrison, J. S., Wicks, A. C., Purnell, P., & Colle, S. (2010). Stakeholder theory: The state of the art. The Academy of Management Annals, 4, 403–445.
Salaria, N. (2012). Meaning of the Term Descriptive Survey Research Method. International Journal of Transformations in Business Management, 1 (6), 1-7.
Saunders, M., Lewis, & M., Thornhill, A. (2012). Research methods for business students (6th edition). Italy: Pearson education ltd.
Sekaran, U. (2010) Research Methods for business: A skill Building Approach (5th edition) USA: John wiley & Sons Publisher
Sinclair, Marie-Louise (2010). “Developing a model for effective stakeholder engagement management” Curtin University of Technology, Asia Pacific Public Relations Journal, Volume 11.
Thawiwinyu, K., & Laptaned, U., (2009). The impact of strategic sourcing and E-procurement on supply chain performance management. China-USA Business Review, 8(8), 8-25.
Thompsen Jr, A. A., Strickland III, A. J., & Gamble, J. E. (2012). Crafting and Executing Strategy. The Quest for Competitive Advantage. Concept & Cases. New York: McGraw- Hill Irwin.
Wamalwa, E. N, (2013). Factors Influencing Investment Decisions in the Parastatals in Kenya.
World Bank, (2012,) Public Procurement in African Countries, Lessons and Challenges
Zhu, Q., Sarkis, J., & Lai, K. (2013). Institutional based antecedents and performance outcomes of internal and external green supply chain management practices. Journal of Purchasing and Supply Management, 19(2), 106-117.
DOI: http://dx.doi.org/10.61426/sjbcm.v5i1.631
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.