INFLUENCE OF STRATEGIC PROCUREMENT PRACTICES ON PERFORMANCE OF PARASTATALS IN KENYA: A CASE OF KENYA AIRPORT AUTHORITY
Abstract
The purpose of the study was to establish the influence of strategic procurement practices on performance of parastatals in Kenya. The study sought to be guided by the following specific objectives: To determine the influence of strategic outsourcing on performance of parastatals in Kenya; To determine the influence of supplier sourcing on performance of parastatals in Kenya; To determine the influence of reverse logistics on performance of parastatals in Kenya; To find out the influence of inventory management on performance of parastatals in Kenya. The study was built on the supply chain operations reference model, Stochastic Inventory Theory, Exchange Relationships Theory and Competency Theory. The independent variables are inventory control, process auditing, inventory investment and warehouse management while the dependent variable is service delivery in the public sector. The study adopted a descriptive research design, with a population of 88 respondents at KAA. A questionnaire with both open ended and closed questions was used to collect raw data from the respondents. The census technique was carried out and primary data was collected through the use of questionnaires. The 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 test the reliability and validity of the data collection instrument. The data was analyzed with the help of SPSS. The study adopted regression analysis at 5% level of significance to determine strength and direction of the relationship of the variables under study. Descriptive statistics were used to analyze the data in frequency distributions and percentages which were presented in tables of frequency distribution, percentages, bar graphs and pie-charts. From the findings, the study established that 66.9% of the total variability in the Performance of Parastatals (KAA) could be explained by Strategic Outsourcing, Inventory Management, Reverse Logistics, and Knowledge Management. However, Inventory Management did not contribute significantly to Performance of Parastatals in Kenya. Therefore, the study recommends that parastatals evaluate their strategic procurement practices (Strategic Outsourcing, Reverse Logistics, and Knowledge Management) so as to significantly improve their performances.
Key Terms: Strategic Outsourcing, Supplier Sourcing, Reverse Logistics, Inventory Management, Performance of Parastatals
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i2.686
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