EFFECTS OF INTERNAL PROCUREMENT CONTROLS ON PERFORMANCE OF FOOD AND BEVERAGE MANUFACTURING INDUSTRIES IN KENYA
Abstract
Food and beverage manufacturing companies should have relevant procurement internal control methods so as to ensure that there is operational efficiency and there is value for money during purchasing as well as cost cutting in order to keep up with the stiffening competition. Hence, firms should have organizational structure aligned with procurement internal controls and must be reshaped and productivity enhanced through resource maximization, operational efficiency and timely purchasing to make it easier to deliver the needs of those it serves more efficiently. The general objective of the study was to investigate the effects of procurement internal controls on performance in the food and beverage manufacturing industries in Kenya. The specific objectives of the study were to determine the effect of control environment on performance of food and beverage manufacturing industries in Kenya, to assess the effect of risk assessment on performance of food and beverage manufacturing industries in Kenya, to establish the effect of monitoring controls on performance of food and beverage manufacturing industries in Kenya and to evaluate the effect of control activities on performance of food and beverage manufacturing industries in Kenya . The target population for study was drawn from the procurement managers of different manufacturing industries in Kenya. The study employed correlational research design. The target population included 187 procurement managers of food and beverage manufacturing industries in Kenya. The sample size was 125 procurement managers. The data obtained was analyzed using qualitative data analysis & quantitative data analysis and presented in terms of tables and figures to summarize responses for further analysis and facilitate comparison. The study concluded that internal procurement controls which includes control environment, risk assessment, monitoring controls, control activities; affects performance of food and beverage manufacturing industries in Kenya.
Key Words: Control Environment, Risk Assessment, Monitoring Controls, Control Activities
CITATION: Mwangi, L. N., & Moronge, M. (2021). Effects of internal procurement controls on performance of food and beverage manufacturing industries in Kenya. The Strategic Journal of Business & Change Management, 8 (4), 179 – 194.
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DOI: http://dx.doi.org/10.61426/sjbcm.v8i4.2094
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