ROLE OF SUPPLIER RELATIONS MANAGEMENT ON THE PERFORMANCE OF HOSPITALS IN NAIROBI COUNTY, KENYA
Abstract
The main purpose of study was to explore the role of supplier relations management on the performance of selected hospitals in Nairobi County Kenya. The methodology of the study was purely qualitative. A census survey approach was taken in which the target population comprising all the 115 registered hospitals in Nairobi county. Descriptive and inferential statistics were used to analyze the data collected. Descriptive statistics revealed that a majority of practitioners in supplier relations management across the institutions surveyed put significant consideration both in the supplier’s organizational and financial stability and product quality thereof. There was low adoption levels of various supplier development measures across a majority of the institutions surveyed. It was also found that prices are a key consideration in supply chain performance. This could be attributed to the fact that spending less in procurement leads to minimized logistical expenditure and a higher profit margin. The study also found that supplier contracting has moderately to greatly impacted supply chain performance in most of the institutions reached. Inferential statistics revealed a positive correlation between the each supplier relations management aspect and performance. The strongest correlation was obtained between supplier selection and performance (r=.798) and the weaker relationship found between supplier development and performance (r=.436). Supplier payment and supplier contracting are also strongly and positively correlated with performance at correlation coefficient of .716 and .708 respectively. All the independent variables were found to have a statistically significant association with the dependent variable at 0.05 level of confidence.
Key Words: Supplier Selection, Supplier Contracting, Supplier Development, Supplier Payment
CITATION: Kulubi, M. M. & Moronge, M. (2019). Role of supplier relations management on the performance of hospitals in Nairobi County, Kenya. The Strategic Journal of Business & Change Management, 6 (1), 586 – 604.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i1.1083
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