INFLUENCE OF SUPPLIER FINANCIAL CAPABILITY AND EVALUATION ON PROCUREMENT PERFORMANCE IN THE COUNTY GOVERNMENT OF BUNGOMA, KENYA
Abstract
This study sought to investigate the determinants of procurement performance in the county government of Bungoma, Kenya. The research was based on efficiency theory and resource based view theory. The study adopted descriptive survey design and used structured questionnaires to collect data. The study targeted 113 respondents where Yamame’s formula was applied to get a sample size of 88 respondents. The study instruments were piloted on 10 senior management officers in the county government of Busia, which neighbors Bungoma County, the study area, where content validity was used to ensure validity while cronbachs alpha was used to check instrument reliability. Descriptive statistics summarized data into meaningful forms while for variable relationships, inferential statistics was computed using SPSS 23. All analyzed data was presented in form of tables and graphs. A total of 81 out of 88 respondents returned completely filled questionnaires indicating a response rate of 92.05% which good for generalizability of research findings to a wider population. From values of unstandardized regression coefficients with standard errors in parenthesis, both independent variables supplier financial capability and supplier evaluation significantly influenced procurement performance in the county government of Bungoma (dependent variable). The study concluded that one; supplier financial capability significantly influences procurement performance in the sense that supplier who had adequate financial resource power would effectively deliver procured goods and services with minimal fail; and two, efficient supplier evaluation is an effective way of ensuring that the county government gets valid and capable suppliers who can effectively deliver procured goods and services. The study recommended that one; there should be a thorough assessment of suppliers before being awarded tenders as this will ensures that qualified suppliers deliver quality goods and services; and two, there should be a thorough assessment of suppliers before being awarded tenders as this will ensures that qualified suppliers deliver quality goods and services.
Key Words: Supplier Financial Capability, Supplier Evaluation, Procurement Performance
CITATION: Khaemba, D. W., & Otinga, H. N. (2019). Influence of supplier financial capability and evaluation on procurement performance in the county government of Bungoma, Kenya. The Strategic Journal of Business & Change Management, 6 (2), 1669 –1682.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1212
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