ROLE OF PROCUREMENT AUDIT ON PERFORMANCE OF PUBLIC HOSPITALS IN NAIROBI COUNTY, KENYA
Abstract
The study sought to establish the role of procurement audit on performance of public hospitals in Nairobi County, Kenya. The study adopted a descriptive research design and targeted all the public hospitals in Nairobi County as the unit of analysis. The target population was 160 respondents and census approach was used to collect data from the respondents. It was notable that there exists a relationship between independent variables and dependent variable with a correlation coefficient of 0.871. Results indicated that the variables were very significant and they therefore needed to be considered in any effort to boost procurement audit in the public hospitals in Nairobi County, Kenya. The study recommended that there was need to identify the source of the risks early enough in order to reduce supplier bankruptcy and costs. The study recommended that there was need to enhance a computerized inventory auditing procuring of materials for reduction of stock outs. There was need to have internal inventory security practices to reduce operational costs, reduce overstocking and reduce obsolete products in the stores. The hospitals should ensure that the supplier provides quality products and continuous improvement is virtually guaranteed by the organization. The products supplied should meet the customer expectation, acceptable or even of high quality. There was need for the hospitals to have the suppliers undergo performance assessments to enhance timely delivery of products. There should be continuous internal audits carried out to enhance reduction of costs. There should be continuous periodical reports being carried out to enhance reduction of costs. The periodical reports can be used to facilitate the suppliers’ relationship to enhance procurement audit in the public hospitals.
Key Words: Supply Chain Risks, Inventory Control, Total Quality Management, Monitoring and Evaluation, Public Hospitals, Procurement Audit
CITATION: Mwirigi, B., & Moronge, M. (2019). Role of procurement audit on performance of public hospitals in Nairobi County, Kenya. The Strategic Journal of Business & Change Management, 6 (2), 1683 –1699.
Full Text:
PDFReferences
Aketch, J., & Karanja, P. (2013). Factors Influencing Procurement Performance in Constituency Development Fund (CDF): Case of CDF Use in Makadara Constituency. International Journal of Social Science & Entrepreneurship, 1(2), 41-55.
Andreasen, P. (2012). The Dynamics of Procurement Management: A Complexity Approach. Frederiksberg: Copenhagen Business School [Phd]. (PhD Series; No. 1.2012).
Appiah, B. (2010). Impact of Training on Employee Performance. In unpublished thesis submitted to the Departmennt of Business Administration. Ghana: Achesi University College.
Armstrong, C. (2001). Inventory Control Can Help Reduce Waste. Supply Journal , 9 (2).
Banda, E. (2009). Politics and Economic Consequences. ( 1st Ed.). Washington D.C.: Center For Study of Responsive Law.
Bandura, A. (1971). Social Learning Theory. New York: General Learning Press.
Barnard, C. I.(1938) The Functions of the Executive. Cambridge, MA: Harvard University Press.
Batenburg, R., &Versendaal, J. (2006, January). Alignment Matters -Improving business functions using theprocurement alignment framework, Utrecht.
Berger, E. & Humphrey, N. (2007). Simple Buying Methods. (1st. Ed.), Nairobi: East Africa Education Publishers.
Blau, P. M. (1964) Exchange and Power in Social Life. New York: Wiley
Borg, W. R., & Gall, M. D. (1996). Educational research. New York: Longman.
Boyan, L. (2003). Procurement in Private Sector (1st Ed.) . Canada: Cooper and Newland Institute.
Boyatzis, R.E. (2008), Competencies in the 21st Century. Journal of Management development, 27 (1), 5-12.
Campbell, J. (2005). Management Concept and Strategies. USA: University of Michigan.
Christopher, M. (2005). Logistics and Supply Chain Management: Strategies for Reducing Cost and Improving Service, (3rd Ed.). London: Prentice Hall.
Cooper, D. R., & Schindler, P. S. (2003). Business Research Methods (8th edition). USA: McGraw-Hill.
Cox, J. F., Blackstone J. H., and Schleier, J. G., (2003). Managing operations: A focus on excellence. Great Barrington, M.A: North River Press
Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. Psychometrika, 16, 297–334.
Dale, K. (2010). Measuring Servce Quality. (1st Ed.) London: Pitman Publicatiion.
DeSanctis, G., & Poole, M. S. (2008). Capturing the Complexity in Advanced Technology Use: Adaptive Structuration Theory. Organization Science, 5 (2), 121-147. INFORMS. doi:10.1287/orsc.5.2.121
Gupta, M. and Snyder, D., (2009). Comparing TOC with MRP and JIT: a literature review. International Journal of Production Research, 47 (13), 3705 - 3739
Gupta, M., (2003). Constraints management: recent advances and practices. International Journal of Production Research, 41 (4), 647 - 659
Hunja, R (2010) Obstacles to public procurement reform in developing Countries, available on http/www.wto.org.
Iloranta, K. &Pajunen-Muhonen, H. (2008). Hankintojenjohtaminen. Helsinki: Tietosanoma Oy.
Jacobs, R. F. Chase, R. B. and Aquilano, N. J. (2009). Operations and Supply Management. Boston: McGraw Hill.
Jones, G. (2001). “Towards a Positive Interpretation of Transaction Cost Theory: The Central Roles of Enterprenuership and Trust”, in H.Freeman and H. Blackwell (eds.), The Handbook of Strateggic Management. Oxford.
Juma, M. J. O. (2010). “Public Procurement Reforms” Kenya Procurement Journal, Issue No. 08, October 2010.
Kipyego, Y.C, Kimutai, G and Kibet, Y. (2015) studied the environmental determinants of procurement performance in youth polytechnics in Baringo County, Kenya.Journal of Economics and Finance. Volume 6, Issue 4. Ver. I, PP 43-48.
KPC (2012). Kenya Pipeline Company: News and briefs. Retrieved 25th April 2019 from http://www.kpc.com
Lardenoije, E. J., Van Raaij, E. M., & Van Weele, A. J. (2005). Performance Management Models and Purchasing: Relevance Still Lost. Researches in Purchasing and Supply Management, the 14th IPSERA Conference, (pp. 687-97).
Leenders, R. M., & Fearon, E. H. (2002). Purchasing and Supply Management, (12th Ed.). Chicago: McGraw-Hill Companies.
Liker, J. & Choi, T. 2004. Building Deep Supplier Relationships. Harward Business Review December 2004, 4.
Mabin, V. J., and Balderstone, S. J., (2003). The performance of the theory of constraints methodology: analysis and discussion of successful TOC applications. International Journal of Operation and Production Management, 23 (6), 568 – 595.
Mahmood, S. A. I. (2010). Public procurement and corruption in Bangladesh.Confronting the challenges and opportunities. Journal of public administration and policy research, 2(6), 103-111.
Mugenda, O. M. & Mugenda, A. G. (2003). Research Methods: Quantitative & Qualitative Approaches. Nairobi: ACTS Press.
Mugenda, O. M. & Mugenda, A. G. (2008). Research Methods: Quantitative and Qualitative Approaches, Acts Press, Nairobi Kenya.
Obanda, W. P. (2010). Fighting corruption in tactical procurement. PHD dissertation
Odhiambo W and Kamau P. (2003), Public procurement: Lessons from Kenya, Tanzania and Uganda. Retrieved 25th April 2019 from http://www.oecd.org/dev/Technics
Omai, K.M (2013). Determinants of electronic procurement on supply chain performance: a survey of tea factories in Kisii County-Kenya. Interdisciplinary Journal of Contemporary Research In Business Institute of Interdisciplinary Business Research, VOL 4, NO 12
Osdorne, M.J. & Rubinstein, A (1990): Bargaining and Markets. Academic Press, Inc., San Diego
Pfeffer, J. & Salancik, G.R. (1978), The External Control of Organizations: a resource dependence perspective. New York: Harper and Row
Polit, D. F. and Hungler B.P. (1999). Nursing Research: Principles and Methods (6th Ed.) Philadelphia, Lippincott
Poole M. S. and Desanctis, G. 2009. “Applied Research on Group Decision Support Systems. The Minnesota GDSS Project,” in The Handbook of Information Systems Research, L. R. Frey and K. N. Cissna (eds.), London Routledge, pp 1434 – 1459.
Public Procurement Oversight Authority (2007) Assessment of the Procurement System in Kenya. Edition Final Version, Prepared by Rambøll Management A/S
Ramakrishna, R. V. (2005). Materials Management - Profit Centre. Indian Institute of Materials
Rusek, J. M. (2006). Procurement Reforms in Kenya (1st Ed.). Nairobi: A Publication of Non Governmental Organizations Procurement Oversight Authority.
Russell, I. (2004). People Management and Competency Profiling. South Yarra: Test Grid Pty Ltd.
Schick, A. (2003). Theory Debates Applicable to Budgeting. A Handbook on Public Budgetary and Financial Management. New York, USA.
Seleim, A. (2007). Knowledge Management and Organizational Performance in Egyptian Software Firms. International Journal of Knowledge Management , 3 (4) , 29-48.
Selznick, P. (1949) TVA and the Grass Roots. Berleley, CA: University of California Press.
Smith, R. & Conway, G. (1993). Organisation of Procurement in Government Departments and their Agencies. London: HM Treasury Consultancy and Inspection Services Division.
Sultana, A. I. (2012). Impact of Training and Employee Performance. Interdiciplinary Journal of Contemporary ResearchinBusiness , 4 (6) 646-696.
Telgen, J., Zomer, G., & de Boer, L. (2003). The efficiency and effectiveness of government purchasing in The Netherlands. Retrieved May 2, 2019, from University of Twente web site: http://www.bbt.utwente.nl/ompl/staff/Telgen/
Thompson, J. D. (1967) Organizations in Action: Social Science Bases of Administration. New York: McGraw-Hill.
Thomson, J., Jackson, T. (2007). "Sustainable procurement in practice: lessons from local government", Journal of Environmental Planning & Management, Vol. 50 No.3, pp.421-44.
Torraco, J. C. 2005. Writing Integrative Literature Reviews: Guidelines and Examples. Human Resource Development Review, Vol 4 No 3, pp. 356-367.
Umble, M., Umble, E., and Murakami, S., (2006). Implementing theory of constraints in a traditional Japanese manufacturing environment. The case of Hitachi Tool engineering. International Journal of Production Research, 44 (10), 1863 – 1880.
Van Weele, A. J. (2006). Purchasing & Supply Chain Management: Analysis, Strategy, Planning and Practice, (4th Ed.).Australia: Thomson.
Vickery, S.K., Jayaram, J., Drige, C. &Calantone, R. (2003). ‘The effects of an integrativesupply chain strategy on customer service and financial performance: An analysis of directversus indirect relationships’, Journal of Operations Management, 21 (5), 523-539.
Waters D. (2004). Introduction To Supply Chain Management, (2rd Edition), Pal grave Macmillan, Britain.
Waters, D. (2004). Introduction to Supply Chain Management (2nd Ed.) ed.). London: Pal Grave Publishers.
Watson, T. J. (2002). Organizing and Managing Work, Financial Times Prentice Hall.
Weber, M. (1947) The Theory of Social and Economic Organizations. Ed. T. Parsons. New York: Free Press.
Wouldiamson, O. (1996) Economics and organization: A primer. California Management Review, 38 (2): 131 – 146
Zeithaml, A. (2000). Delivering Quality Service. In (1st. Ed.) ,Balancing Customers Perceptions and Expectations. Picador Publishers.
DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1215
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.