DETERMINANTS OF PROCUREMENT PLANNING IN STATE OWNED ENTERPRISES IN KENYA
Abstract
The purpose of this study was to establish the determinants of procurement planning in the state owned enterprises in Kenya. The study was anchored on Institutional Theory, Accounting Theory and Cognitive Moral Development Theory. The study sought to be guided by the following specific objectives: To examine the effect of staff competence on procurement planning in the state owned enterprises in Kenya; To determine the effect of budgeting procedures on procurement planning in the state owned enterprises in Kenya; To establish the effect of demand forecasting on procurement planning in the state owned enterprises in Kenya; To explore the effect of ethics in procurement processes on procurement planning in the state owned enterprises in Kenya. The study targets all the 187 state owned enterprises senior procurement officers. A descriptive research design was adopted. Data was collected through questionnaires. The data showed that the high R square is 0.799. It showed that the independent variables in the study were able to explain 63.80% variation in the procurement planning while the remaining 36.20% was explained by the variables or other aspects outside the model. This implied that these variables are very significant and they therefore need to be considered in any effort to boost procurement planning in the state enterprises. The study therefore identified variables as critical elements of procurement planning in state owned enterprises in Kenya. The study findings revealed that staff competence affects procurement planning; therefore we recommended that state owned enterprises should come up with a standard checklist showing the skills and competency level needed by all personnel undertaking procurement planning. There is need to ensure that there is budgetary control, differences between budget and actual results are analyzed periodically and actions taken. The study further recommended that there should be laid down policies on procurement ethics practices and practice implementation to avoid malice and malpractices that would lead to unsuccessful adoption of the same within state owned enterprises. Based on the findings, it is for the state owned enterprises highly recommendable to build a stable demand forecasting metric which will contribute to a more accurate decision-making process, and at the same time present decision makers (management team)the impact of forecasting errors.
Key Words: Staff Competence, Budgeting Procedures, Demand Forecasting, Procurement Ethics
CITATION: Kitaka, F. W., & Moronge, M. (2020). Determinants of procurement planning in state owned enterprises in Kenya. The Strategic Journal of Business & Change Management, 7(4), 240 – 261.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i4.1787
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