DETERMINANTS OF PROCUREMENT PERFORMANCE IN COUNTY GOVERNMENTS IN KENYA
Abstract
The study sought to establish the determinants of procurement performance in the county governments of Kenya. Descriptive research design was used for the study. The target population for this study was 160 procurement related officers drawn from different procurement related departments in the eight county governments in Kenya that were established by the new constitution in 2010 namely; Kiambu, Mombasa, Kitui, Nairobi, Garissa, Kisumu, Bomet and Kakamega. Primary data was used to collect using questionnaires. The quantitative data was entered into SPSS for analysis. Both quantitative and qualitative data analysis techniques were used. It was notable that there existed a strong positive relationship between the independent variables and dependent variable under study. The independent variables in the study were able to explain 63.80% variation in the procurement functions while the remaining 36.20% were explained by the variables or other aspects outside the model. This indicated that procurement planning, contract management, procurement outsourcing, resource allocation need to be well adopted to enhance procurement functions in the county governments in Kenya. The study recommended that top level and lower level employees should be involved in formulation and development of the procurement plans so as to make the process of implementation easier and acceptable by all employees. The procurement personnel’s in county governments need to carefully study and understand the applicable procurement thresholds in different situations and relevant procurement method applicable. The study recommended that there is need for county government to create and maintain a good relationship with the contractors. There should be a mutual trust between the contractor and county government. There is need to ensure that the county government achieve the expected results and both parties should terminate the contracts effectively. The study recommended for procurement outsourcing especially changes in the suppliers, receives quotations, quality and price to identify the suppliers. The study recommended that resource allocation is important for procurement functions county governments in Kenya. The county government allocation of resources in the procurement process should be commendable. There should be budget reviewing to cater for changes in the economic environment.
Key Words: Procurement Planning, Contract Management, Outsourcing, Resource Allocation
CITATION: Munyoki, R., & Moronge, M. (2019). Determinants of procurement performance in County Governments in Kenya . The Strategic Journal of Business & Change Management, 6 (4), 281 – 299.
Full Text:
PDFReferences
Adam, A. (2007). Implementing electronic document and record management systems. CRC Press.
African Peer Review Mechanism Country Review (APRM) Report (2009), Economic Development in Kenya, 6(1), 242-261.
Amayi, F. K. (2011). Factors Affecting Procurement in the Public Service: a Case Study of the State Law Office. Eldoret: Moi University.
Ambe, I. M., & Badenhorst-Weiss, J. A. (2012). Procurement challenges in the South African public sector. Journal of transport and supply chain management, 6(1), 242-261.
Amemba, C. S., Nyaboke, P. G., Osoro, A., & Mburu, N. (2013). Challenges affecting public procurement performance process in Kenya. International Journal of Research in Management. Issue, 3.
Amy Carlson, James Manktelow, Business SWOT Analysis, “Discover New Opportunities, Manage and eliminate Threats,” 2012
Arain, M., Campbell, M. J., Cooper, C. L., & Lancaster, G. A. (2010). What is a pilot or feasibility study? A review of current practice and editorial policy.BMC medical research methodology, 10(1), 67.
Arrowsmith, S. (2008). “National and International Perspectives on the Regulation of Public Procurement: Harmony or Conflict?” In Arrowsmith, S. & Davies, A. (Eds.), Public Procurement: Global Revolution (3-26). London, UK: Kluwer Law International.
Babbie, E. R. (2013). The basics of social research. Cengage Learning.
Barney, J. B. (2008), Gaining and Sustaining Competitive Advantage. Addison – Wesley Publishing Company, New York
Basheka, B. C. (2008). Procurement Planning and Accountability of Local Government Procurement Systems in Developing Countries: Evidence from Uganda. Journal of Public Procurement , 8 (3), 379-406.
Basheka, B. C., &Bisangabasaija, E. (2010). Determinants of unethical public procurement in local government systems of Uganda: a case study. International Journal of Procurement Management, 3(1), 91-104.
Bashuna, A. (2013). Factors affecting effective management of the procurement function at Nakuru North sub-county. International journal of business & management, 1(7), 262-291.
Berman, Saul, Strategic Direction: Don't Reengineer Without It; Scanning the Horizon for Turbulence, Planning Review, November 1994; 18
Berrett-Koehler & Barney, J.B., (2011), Firms resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120
Bititci, U.S., Turner, T. and Begemann, C. (2000), ``Dynamics of performance measurement
Blair F. 2004. Developing Sustainable procurement as a shared priority – vision to reality. IdeA, Sustainable Development Commission and Global to Local.
Bledow, R., Schmitt, A., Frese, M. and Kühnel, J. (2011), “The affective shift model of work engagement”, Journal of Applied Psychology, (96) 6, pp. 1246-1257.
Bourne, M., Mills, J., Wilcox, M., Neely, A. and Platts, K. (2000), ``Designing, implementing and updating performance measurement systems’’, International Journal of Operations & ProductionManagement, Vol. 20 No. 7, pp. 754-71
Business Daily Kenya; “Trend in corporate strategies,” 2012.
Champoux, J, E. (2011) Organizational Behavior: Integrating Individuals, Groups, and Organizations Fourth (4th) Edition.
Chew, Angie, How Insurance Firms Can Reengineer for Success, Business Times, June 20, 1994; Pg. 11
Chateleine (2014) Competent Government: Theory and Practice, Chatelaine Press,Burk, VA, 2013. 3-19.
Chiang, J. K. (2014). Reducing government proposal procurement process complexity (Doctoral dissertation, Massachusetts Institute of Technology).
Cox, A., Chicksand, D., and Ireland, P. (2005) Sub-Optimality in NHS Sourcing in the UK: Demand-Side Constraints on Supply-Side Improvement, Public Administration, 83(2), 367-392
Chivwara, N. (2013). An analysis of the governance of higher education access in Malawi.
David, Fred R. (2003). Strategic Management, 4th Ed. New York: Macmillan Publishing Company
DCD/DAC. (2003). Strengthening Procurement Capacities in Developing Countries. Paris: OECD/DAC-World Bank Round Table.
De Kleine, R. (2009). Life cycle optimization of residential air conditioner replacement (Doctoral dissertation, University of Michigan).
Eisenhardt, K.M. & Martin, J.A. (2010), Dynamic Capabilities: What Are They? Strategic Management Journal, 21(10/11), 1105-1121
European Commission Directorate-General For Research Directorate — investment in research and links with other policies unit m1, political aspects, private investments, relations to EIB: public procurement for research and innovation (2011)
Frøystad, M., Heggstad, K. K., &Fjeldstad, O. H. (2010).Linking procurement and political economy.UK Department for International Development and the World Bank Institute.
Giddens, A. (1984). The constitution of society: Outline of the theory of structuration. Univ of California Press.
Gitari, M. W., &Kabare, K. (2014). Factors affecting access to procurement opportunities in public secondary schools by small and medium enterprises in Kenya: A survey of Limuru Sub-county. International Journal of Current Business and Social Sciences, 1(2), 220-250.
Greenhalgh, T., & Stones, R. (2010).Theorising big IT programmes in healthcare: strong structuration theory meets actor-network theory. Social science & medicine, 70(9), 1285-1294.
Harris, L. R., & Brown, G. T. (2010). Mixing interview and questionnaire methods: Practical problems in aligning data.
Hui,W.S.,Othman,RO.,Normah,O.,Rahman,R.A.&Haron,N.H(2014).Procurement issues in Malaysia. International Journal of Government parastatals Management, 24(6),567-593.
Institute of economic affairs (2014); Budget for 2014/2015: Balancing financing concerns while responding to spending inefficiencies.
Intaher Ambe (2012); Procurement Challenges In The South African Government parastatals; Department of Business Management; University of South Africa (Unisa)International Journal of Operations and Production Management, (19) 2, 205-28.
Jonker, J., &Pennink, B. (2010).The essence of research methodology: A concise guide for master and PhD students in management science. Springer Science & Business Media.
Johnson P.F. and Leenders M.R. Building A Corporate Supply Function [Journal] // Journal of Supply Chain Management. 2008. (3) 44, 39-52.
Kakwezi, P., &Nyeko, S. (2010). Procurement processes and performance: Efficiency and effectiveness of the procurement function. Retrieved April, 3, 2011.
Kelman, S. (2010). Procurement and Public Management: The Fear of Discretion and the Quality of Government Performance.Washington, DC: The AEI Press.
Kerkhoff, G., Hofmann, E., &Stölzle, W. (2014).Professional Supply Management.
Kemoni, H. N., Ngulube, P., & Stilwell, C. (2007). Public records and archives as tools for good governance: reflections within the recordkeeping scholarly and practitioner communities. ESARBICA Journal, 26, 3.
Kenya Institute of Public Policy Research and Analysis (2013). Kenya Economic Report: Creating an Enabling Environment for Stimulating Investment for Competitive and Sustainable Counties
KNBS, (2015).Kenya Manufacturing Firms Survey. Nairobi
Kenya law reports (2015). www.klr.org accessed 20th February 2015
Kirkpatrick, D. (1994). Evaluating Training Programs.
Koul, L. (2009). Methodology Of Educational Research, 4Enew E. Vikas Publishing House Pvt Ltd.
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, (687-97). Archamps.
Lars Bedey (2008), Purchasing Management; Chalmers Department of Technology Management and Economics; Published by Elpida Memory Inc.
Lunenburg, A., O. (2008),Educational Administration-Concept and Practices.
Luttrell, W. (Ed.). (2010). Qualitative educational research: Readings in reflexive methodology and transformative practice. Routledge.
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):103–11.
Maira, S. (2012).Desis in the house: Indian American youth culture in NYC. Temple University Press.
Maruping, L. M., & Agarwal, R. (2004). Managing team interpersonal processes through technology: a task-technology fit perspective. Journal of Applied Psychology, 89(6), 975.
Matunga, D., Nyanamba, S., &Okibo, W. (2013). Effect of E-Procurement Practices Effective Procurement In Public Hospitals: A Case Of Kisii Level 5 Hospital. Unpublished MBA Report, Jomo Kenyatta University of Agriculture and Technology, Kenya.
Mburu, D. M., & Mwangangi, P. (2014). Issues affecting implementation of procurement policies in government institutions in Kenya: Case of Ministry of East African, Affairs Commerce and Tourism. International Journal of Social Sciences and Entrepreneurship, 1(13), 400-424.
Meyer, M.W. and Gupta,V. (2014), ``The performanceparadox’’, in Straw, B.M. and Cummings, L.L. (Eds), Research in Organizaional Behaviour,16, 309-69
Millar, L. A. (2017).Archives: principles and practices. Facet Publishing.
Millinga, T. B. (2014). The Effectiveness of School-Based In-Service Training for Primary School Teachers (INSET-PST) in Enhancing Teacher Professional Development: A Case study of Bagamoyo District (Doctoral dissertation, The Open University of Tanzania).
Mose, J. M., Njihia, J. M., & Peterson, O. M. (2013). The critical success factors and challenges in e-procurement adoption among large scale manufacturing firms in Nairobi, Kenya. European Scientific Journal, 9(13).
Mugenda, O.O. & Mugenda A.G. (2008). Research Methods Qualitative d Quantitative Approaches. African Center for Technology Studies, ACTS press, Nairobi an Kenya.
Mugenda, O. M., &Mugenda, A. G. (2012).Research methods dictionary.
Mugo, H. (2013). Determinants of procurement regulatory compliance by Kenya Electricity Generating Company.International Journal of Social Science and Entrepreneurship, 1(7), 267-25.
Neely, A.D. (1999), ``The performance measurement revolution: why now and where next’’, systems’’, International Journal of Operations & Production Management, (20)6,
Ndumbi, C. W., &Okello, B. (2015).Effect of Staff Training on level of Compliance to Public Procurement System in Parastatals in Kenya.International Journal of economics, Commerce and management, 3(6).
Ngugi, J. K., &Mugo, H. W. (2012).Internal factors affecting procurement process of supplies in the public sector; a survey of Kenya government ministries. In 5th International Public Procurement Conference was held on August 17th.
Nisbet, H., & Matthews, S. (2011). The educational theory underpinning a clinical workbook for VERT. Radiography, 17(1), 72-75.
Odhiambo, W. & Kamau, P. 2013. Public procurement: Lessons from Kenya, Tanzania and Uganda. OECD Development Centre Working Paper No. 208.
Organisation for Economic Co-operation and Development (2009); Regulatory Policy and the Road to Sustainable Growth
Orodho, A. J. (2012). Techniques of Writing Proposals and Research Reports in Education and Social Science Research Methods: Maseno. Kenya: Kanezja Publishers.
Owusu, R. A., &Vaaland, T. (2012). What is a responsible supply chain?. International Journal of Business and Management, 7(4), 154-171.
Patrick Kakwezi & Sonny Nyeko (2010): Procurement Processes and Performance: Efficiency And Effectiveness of The Procurement Function. Department of Procurement and Logistics Management, Makerere University Business School Performance measurement systems: an interdisciplinary review’’, International Journal of Production Economics, 60-61
Porter, Michael E., "Competitive Advantage". 1985, Ch. 1, pp 11-15. The Free Press. New York. 692-704.
Polit, D. F., Beck, C. T., & Owen, S. V. (2007). Is the CVI an acceptable indicator of content validity? Appraisal and recommendations. Research in nursing & health, 30(4), 459-467.
Public Procurement Oversight Authority (2013); Public Procurement and Disposal General Manual. Government Press, Nairobi Kenya
Puja Mondal, Environmental Components, “Your Articles Library” 2012
Quayle M. Purchasing and Supply Chain Management: Strategies and Realities: Idea Group Publishing, 2006.
Raymond, J. (2008). Benchmarking in public procurement. Benchmarking: An International Journal, 15(6), 782-793.
Raustialla, K. (2010). The piracy paradox: Innovation and intellectual property in fashion design. Virginia Law Review, 92 (8), 1688–1777
Rich, M. K., Baker, D., Negassa, A., & Ross, R. B. (2009), Concepts, applications & extensions of value chain analysis to livestock systems in developing countries. Conference Proceedings, IAAEC, Beijing, China, August 16-22, 2009.
Rotich, L. M. (2011). Influence of Planning on Procurement Performance in the Kenya Public Financial Sector.
Roodhooft, F., Stouthuysen, K., Van den Abbeele, A. G., &Slabbinck, H. (2016).Management Control System Imitation in Supply Chains.
Rubin, A., &Babbie, E. R. (2013).Brooks/Cole empowerment series: Research methods for social work. Cengage Learning.
Sarita Harbour ;What Are the Benefits and Detriments of SWOT Analysis?; Demand Media; University of Guelph 2009
Saunders, J., & Elkan, N. (2004).U.S. Patent Application No. 10/986,056.
Service Delivery and Performance Commission (2009); Report on the Review of Purchasing and Logistics in the Queensland Government; Published by Aberdeen Group
Shevchenko A.A. and Shevchenko O.O. B2B e-hubs in emerging landscape of knowledge based economy [Journal] // Electronic Commerce Research and Applications. 2005. Vol. 4. pp. 113-123.
Shuttleworth, M. (2008). Qualitative and quantitative research design. Michigan University Press
Simms, N. (2005). Procuring for the future. Sustainable Procurement National Action Plan: Cambridge Education Press, UK
Stieger, S., &Reips, U. D. (2010). What are participants doing while filling in an online questionnaire: A paradata collection tool and an empirical study. Computers in Human Behavior, 26(6), 1488-1495.
Tabish, S. Z. S., and Kumar NeerajJha. "Analyses and evaluation of irregularities in public procurement in India."Construction Management and Economics 29, no. 3 (2011): 261-274.
Thomas, D. M., &Bostrom, R. P. (2010). Vital signs for virtual teams: An empirically developed trigger model for technology adaptation interventions. MIS quarterly, 34(1), 115-142.
Taplin, H. C. (2012). Theory of Change: A Primer on Theory of Chage. New York: The Rockefeller Foundation Government of Kenya (2014). Reduction in Public Procurement and Expenditure. Nairobi: Kenya Gazette.
Taplin, H. C. (2012). Theory of Change: A Primer on Theory of Chage. New York: The Rockefeller Foundation
Teece, D.J. (2007), Explicating Dynamic Capabilities: the nature and micro foundations of (sustainable) enterprise performance. Strategic Management Journal 28: 1319 -1350.
Teece, D.J. (2010), Technological innovation and the Theory of the Firm: The Role of Enterprise – level Knowledge Journal of Business & Industrial Marketing.2005, Complimetaries and Dynamic capabilities. In N. Rosenberg and B.Hall (eds). Handbook of the Economics of Innovation,
Teece, D.J. (2010), Technological innovation and the Theory of the Firm: The Role of Enterprise – level Knowledge, Complimetaries and Dynamic capabilities. In N. Rosenberg and B.Hall (eds). Handbook of the Economics of Innovation,
Thai, K. V., & Grimm, R. (2009). “Government Procurement: Past and Current Developments.” Journal of Public Budgeting, Accounting & Financial Management, 12(2); 231-247.
Thite, M., & Sandhu, K. (2014). Where is My Pay? Critical Success Factors of a Payroll System–A System Life Cycle Approach.Australasian Journal of Information Systems, 18 (2).
Tsabedze, V., Mutula, S. M., & Jacobs, D. (2012).Records management in the government of Swaziland. ESARBICA Journal, 31, 48.
The (former) Office of Government Commerce (OGC) Queensland Austarlia, Market Creation, Procurement Documents, 2012, p. 6.
Walter, A., Ritter, T., Gemunden, H. G., ”Value Creation in Buyer-Seller Relationships”, (2001), p366
DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1393
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.