EFFECT OF SUPPLIER EVALUATION ON PERFORMANCE OF THE PROCUREMENT FUNCTION OF PRIVATE HEALTH INSTITUTIONS IN KISUMU COUNTY, KENYA
Abstract
This study sought to determine the effect of supplier evaluation on performance of procurement function of the private health institutions in Kisumu County. This was cross sectional survey study where data was collected in private health institutions in Kisumu County at a single point in time. Population of the study was 75 procurement staff of the 25 private health institutions in Kisumu County while the sample size was all the 75 staff working in the procurement departments. Data was collected through structured questionnaires that was administered through drop and pick technique. The collected data was analyzed and mean and standard deviations used to describe the variables in the study while regression analysis was computed to determine the effect of supplier evaluation on performance of procurement function of the private health institutions in Kisumu County. Both descriptive and inferential statistics indicated that all the study’s conceptualized variables (supplier quality commitment, supplier financial stability and supplier competence) significantly influenced performance of procurement function of private health institutions in Kisumu County (dependent variable). The study concluded that one; supplier quality commitment is a mandatory requirement for boosting the procurement function; two, supplier financial stability boost procurement performance function by minimizing costs associated with re-advertisements of tenders due to prequalified supplier’s financial inability; and three, supplier competence is a significant determinant of procurement performance, since overall supplier capability in terms of product/service quality responsiveness guarantees customer satisfaction. The study recommended that one, the procurement office should consider supplier’s quality commitment to ensure that procured goods/services meet customer needs and standards, two, the procurement office should evaluate suppliers’ financial stability in determining suppliers’ financial capability of supplying procured goods/services; and three, to boost the procurement performance function, procurement officers should carefully assess supplier’s competence in supplying quality goods/services before being awarded bids.
Key Words: Supplier Quality Commitment, Supplier Financial Stability, Supplier Competence, Procurement
CITATION: Ouko, S., & Juma, D. (2020). Effect of supplier evaluation on performance of the procurement function of private health institutions in Kisumu County, Kenya. The Strategic Journal of Business & Change Management, 7(2), 40 – 57.
Full Text:
PDFReferences
Alan, S. (2010). Exploring the business case for e-procurement. International Journal of Distribution and Logistics Management, 40(3), 181-201
Ameyaw, C., Mensah, S. &Osei-Tutu, E. (2012).Obstacles to the procurement reforms in Ghana. Journal of Public Procurement and Contract Management, 5(7), 224-374.
Gonzale, G and Quesada , H (2004). Supply chain network Strategies. International Journal of Operations & Production Management, 21(1/2), 195-209.
Ho, L.W.P., Dickison, N.M. and Chan, G.Y.S. (2010). Green Procurement in the Asian Public Sector and Hong Kong Private Sector, Natural Resources Forum Vol.34, 24-38.
Ireland, R.D.and Webb J.W. (2007). A multi-theoretic perspective on trust and power in strategic Supply chains. Journal of operations Management, Vol 25 No.2, pp.482-497.
Kempf, G.(2004). Control-oriented approaches to supply chain management in semiconductor Manufacturing. IEEE Proceeding of the 2004 American Control Conference, Boston, Massachusetts.
Kenya Association of Manufacturers.(2014). Annual Report. Nairobi. KAM
Kenya Association of Manufacturers.(2017). Annual Report. Nairobi.KAM
Kenya National Bureau of Statistics.(2015). Economic Survey. Nairobi. KNBS.
Kevin, A. (2016). Challenges Facing Industrialization and Manufacturing in Kenya.(Online edition).
Kombo, K &Tromp,.A, (2006) Proposal and Thesis writing , Paulines Publishers, Nairobi, Kenya.
Kothari, C. (2004). Research Methodology. New Delhi, India: John Wiley & Sons.
Kothari, C. (2004). Research Methodology Methods and Techniques (2nd Ed.), New Age International (P) Ltd Publishers, New Delhi India.
Kotler, P. (2011). Reinventing Marketing to manage the environmental imperative, Journal of Marketing, Vol 75:132-135.
Kleijn, H. &Rorink, F. (2012) Change management.Hogeschool Arnhem en Nijmegen, Arnhem.
Laititi, M. (2014). Generic Strategies Employed by Food and Beverage Firms in Kenya and Their Effects on Sustainable Competitive Advantage. International Journal Of Business And Management Review,2(6), 1-15.
Lockamy, A. & McCormack, K. (2004).Linking SCOR planning practices to supply chain performance.International Journal of Operations and Production Management, 24(12), 1192-1218.
Lysons, K. (2007). Purchasing and Supplies Management.(5th Ed.). New Jersey: Pearson publishers.
Maluku,W. (2013). The Effects of Competitive Strategies on Performance of Dairy Firms in Kenya. Unpublished MBA project, school of business Kenyatta University.
Mattson, S. (2011).Inventory Control in Environment with Short Lead Time.International Journal of Physical Distribution and Logistics, 27 (2).
Mogere, K .(2016). Service outsourcing and supply chain performance of cement manufacturing firms in Kenya. Unpublished MBA project, school of business University of Nairobi. (pg 6-7).
Mugenda, O. &Mugenda, A. (2008).Research Methods, Quantitative and Qualitative Approaches. Nairobi, Kenya: African Centre for Technological Studies. 52
Mugume, M and Ntayi, R (2014) E-procurement: Streamlining Processes to Maximize Effectiveness, Luminant Worldwide Corporation, Houston, TX.
Myers, B. (1997). The pricing of Export Products: Why Aren’t Managers Satisfied with the Results. Journal of World Business, 32(3), 277-289.
Nakuru County First County Integrated Plan. (2013). Nakuru integrated development plan. Nakuru
Neelan, G. & Mike, H. (2016).Pricing Behaviour in Manufacturing industry in South Africa: Implications for competition policy.
Nelson, N. (2014). Impact of Cost Reduction Strategies on Performance of Tea Factories in Embu County, Kenya. European Journal f Business and Social Sciences.
Nunes,P., Yardley S., &Spelman, M.(2013). Don’t despair: Growth from consumer behavior change in developed market economies; The European Business Review (May- June).
Okello, O.& Were, S. (2014). Influence of supply chain management practices on performance of the Nairobi Securities Exchange’s listed food manufacturing companies in Nairobi. International Journal of Social Sciences & Entrepreneurship, 1(11), 107- 128.
Omwoha, R (2015). Effects of transparency in procurement practices on government expenditure: a case study of municipal public works. Review of Industrial Organization, 47(3)
Ondieki, G. (2012). Assessment of materials management in Kenyan manufacturing firms. Journal of Business Studies Quarterly.
Olson, D. Thomsons, J. and Jackson, T. (2005).Developing an effective internal customer’s service ethos: Institute of Public Administration Ireland.
Otanez, C andGlantz, G (2011). Developing an effective internal customer’s service ethos: Institute of Public Administration Ireland.
Petersen, C, Nachtmann, H., & Pohl, E (2005) The industry’s take on data standards. Materials Management in Health Care, 12–16.
Peter, V. (2007).What is Theory? Cultural Theory as Discourse and Dialogue. London: Continuum.
Popper,K. (1963). Conjectures and refutations. Routledge, (5th Ed).1989, London.
Powell, T. (2001). Competitive Advantage: Logical and Philosophical consideration. Strategic Management Journal, Vol. 22(9):875-888.
Porter, M & S, Stern. (2001). Innovation: Location matters, Sloan Management Review, Summer, 3(4); 28-37.
Porter, M. (1985)."Competitive Advantage". Ch. 1, pp 11-15. The Free Press. New York.
Powell, T. (2011). Competitive Advantage: Logical and Philosophical Considerations. Strategic Management Journal.
Raiborn ,C., Michael R. & Janice P. (2006). Cost accounting, (6th Ed.), Rob Dewey Thompson, South Western, Singapore.
Ramakrishma, R. (2005). Materials management- profit centre. Indian Institute of Materials Management Journal, 8(6), 75-83.
Richard,P.(2009). Measuring organizational performance: towards methodological best practice. Journal of Management. 53
Saunders, M (2007). Strategic Purchasing & Supply Chain Management, 2nd Ed. Pearsons Education Center: England.
Saunders, M., Lewis, P. & Thornhill, A. (2012). Research methods for business students (6th ed.). Harlow: Pearson.
Serakan, U.(2003). Research Methods for Business: A Skill Building Approach, (4th Ed.), New York, Inc & Sons Ltd.
Teutemann, M. (2010). The Completion of the Internal Market: An Application of Public Choice Theory, EC,Brussels.
Theodosiou, M. (2000).Factors Influencing Degree of International Pricing Strategy: An Empirical Investigation. Marketing in a Global Economy Proceeding, 246-53.
Tukamuhabwa, B., Eyaa, S. & Derek, F. (2011). Mediating Variables in the Relationship Between Market Orientation and Supply Chain Performance. A theoretical approach: International Journal of Business and Social Science, 2(22).
Tyson, S. (2006).Essentials of Human Resource Management (5th Ed.) Rout ledge, New York, USA.
United Nations Industrial Development Organization.(2016). Annual Report. Nairobi. UNIDO.
Vaidya, B andCallender, T (2012) Value added benefits of technology: E-procurement and e commerce related Business. International Journal Quality Assurance, 18, 6, 458-473.
Weele, A. (2010). Purchasing and Supply Chain Management Analysis, Strategy, Planning and Practice,(5th Ed.) Macmillan Publishing Solutions United Kingdom.
Weil, A. & Woodall, J. (2005) HRD in France: The Corporate Perspective. Journal of European Industrial Training,29, 7, 529-540.
Wisner J., Tan K., & Leong G.(2012). Principles of Supply Chain Management: A Balanced Approach. Cengage South-Western, Ohio.
Whitelock, J & Carole, P. (1997).The Standardization Debate in International Marketing. Journal of Global Marketing, 10 (3), 45-66.
Yin-Mei, Huang & Wei-Chi & Tsai, (2013).Mechanisms Linking Employee effective delivery and Customer Behavioral Intentions. http://psycnet.apa.org/journals/apl/87/5/1001/
Zikmund, W. (2003).Business Research Methods. Texas, USA: Harcourt College Publisher.
Zima, P. (2007). What is theory? Cultural theory as discourse and dialogue. London: Continuum (translated from: Was istTheorie? Theoriebegriff und DialogischeTheorie in der Kultur- und Sozialwissenschaften.Tübingen: A. FrankeVerlag, 2004).
Zheng, S., Zhang, W., Wu, X., & Du, J. (2011).Knowledge-based dynamic capabilities and innovation in networked environments. Journal of Knowledge Management, 15(6), 1035–1051. doi:10.1108/13673271111179352
DOI: http://dx.doi.org/10.61426/sjbcm.v7i2.1607
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.