INFLUENCE OF CONTRACT MANAGEMENT ON PROCUREMENT PERFORMANCE IN MANUFACTURING FIRMS OF KENYA; A CASE BIDCO OIL REFINERIES LTD
Abstract
The purpose of this study was to examine the influence of contract management practices on procurement performance in manufacturing firms in Kenya. The study employed descriptive research design with target population of 130 and using census. The study used primary data which was collected using a comprehensive questionnaire. Quantitative data collected was analysed by the use of descriptive statistics using SPSS (version 23) as the tool of choice. According to the model it was notable that the independent variables and dependent variable had a strong positive a correlation coefficient of 0.788. The R squared which is the coefficient of determination was 0.620. This indicateds that the four independent variables jointly 62.00% variation in the procurement performance in the manufacturing firms. The remaining 38.00% could be accounted by other variables which the study recommended for further research. Therefore, it was concluded that contract relationship management, contract administration, contract dispute resolution and contract closure greatly need to be enhanced to boost procurement performance in the manufacturing firmsof Kenya. The study recommended that there was need for manufacturing firms to create and maintain a good relationship with the contractors. There should be a mutual trust between the contractor and manufacturing firms. The study recommended that the manufacturing firms control and manage contract changes efficiently by ensuring that the contractors are paid in time. The study recommended that the manufacturing firms should ensure that each party is free to express its concerns. There should be a win-win situation for both the manufacturing firms and contractor. There is need to evaluate the degree of successful contract execution and achieve the expected results and both parties should terminate the contracts effectively.
Key Words: Contract Management, Contract Administration, Contractor Relationship, Dispute Resolution, Contract Closure
CITATION: Kimundu, G. N., & Moronge, M. (2019). Influence of contract management on procurement performance in manufacturing firms of Kenya; A case Bidco Oil Refineries Ltd. The Strategic Journal of Business & Change Management, 6 (1), 106 – 120.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i1.1039
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