INFLUENCE OF ETHICAL PRACTICES ON PROCUREMENT PERFORMANCE OF SUGAR PROCESSING FIRMS IN WESTERN KENYA
Abstract
This study sought to establish the influence of ethical practices on procurement performance of sugar processing firms in Western Kenya. Specifically the study established the influence of transparency on procurement performance of Sugar Processing Firms in Western Kenya. The study further determined how ICT adoption moderates the relationship between independent and dependent variable. Descriptive survey research design was adopted. The study targeted 4 sugar processing firms in Western Kenya which included Nzoia, Mumias, Butali and west Kenya sugar processing firms. The study population comprised of 131 procurement staff and 8 procurement managers. Stratified random sampling was used to determine the sample size. The study used self-administered questionnaire to collect primary data. Both descriptive and inferential statistics was used to analyze data and test hypothesis of the relationship. The data was then processed by use of Statistical Package for Social Sciences (SPSS 24.0). Multiple regression analysis was adopted to measure the relationship between independent and dependent variable. The research findings indicated that transparency had statistical significant influence on procurement performance in sugar processing firms in Western Kenya. For this reasons, the null hypothesis of the study was rejected. ICT had significant moderating influence as it significantly accounted for additional change in procurement performance. There was significant increase in regression coefficients for transparency in regard to ICT and procurement performance. It was concluded that transparency had statistically significant influence on procurement performance and ICT was significant moderator in this study. The study recommended that the management of Sugar processing firms in Western Kenya need to advertise all bid opened in front of public to improve transparency of procuring proces and that they should invest in ICT infrastructure to ensure that all processes of procurement are technology based. The study suggested that there is need to examine other ethical practices such as stewardship and confidentiality on the procurement performance. Further studies should also to focus on ethical policies as a moderating variable on the relationship between the two variables.
Key Words; Ethical Practices, Transparency, Information Communication Technology, Procurement Performance, Sugar Processing Firms
CITATION: Okwedo, I. A., & Muthini, J. N. (2020). Influence of ethical practices on procurement performance of sugar processing firms in Western Kenya. The Strategic Journal of Business & Change Management, 7 (4), 863 – 877.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i4.1829
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