SUPPLIER MANAGEMENT PRACTICES AND PROCUREMENT PERFORMANCE OF SELECTED PARASTATALS IN KENYA
Abstract
The main goal of the study was to find out how supplier management practices affected parastatals in Kenya's procurement performance. The study utilized descriptive research design in evaluating how supplier management practices relate to procurement performance. The target population of the study was 187 parastatals in Kenya. The study applied stratified random sampling procedures in selecting a study sample of 65 parastatals. Questionnaires with closed questions were utilized to collect quantitative primary data. The filled questionnaires were serialized, cleared up for validity and input into a statistical package for social sciences software (SPSS). Means and standard deviations were used to summarize descriptive analysis findings. In this instance, multiple linear regression analysis was used to determine the connection between Kenyan parastatals' procurement performance and supplier management practices. The study found that supplier collaboration and practices for supplier development (=0.384, p-value=0.000) and selection (=0.327, p-value=0.033) had a positive and significant impact on parastatal procurement performance in Kenya. The positive effect of supplier quality management on parastatal procurement performance in Kenya was found to be statistically insignificant (=0.151, p-value=0.194), despite being positive. This study concluded that supplier development and supplier collaboration practices positively and significantly influence procurement performance of parastatals in Kenya. The study also concluded that supplier quality management practices positively but insignificantly influence procurement performance of parastatals in Kenya. This study recommended parastatals in Kenya to pay close attention to supplier development practices such as supplying training, financing, and information sharing are crucial. Secondly, It was suggested that the parastatals in Kenya create a concise policy framework to guide initiatives on supplier selection practices including considering value for money when selecting suppliers, valuing process cost management, and placing significant value in on-time delivery. Parastatals in Kenya are also encouraged to concentrate on supplier collaboration practices by engaging cross-functionally with suppliers, working to ensure open communication and trust with suppliers, and having strategic alignment with them to additionally further develop their performance in procurement. This study finally suggested that comparable research be carried out in other sectors to produce a diverse set of findings.
Key Words: Supplier Development, Supplier Selection, Supplier Quality Management, Supplier Collaboration
CITATION: Kiloli, R. N., & Chege, P. (2023). Supplier management practices and procurement performance of selected parastatals in Kenya. The Strategic Journal of Business & Change Management, 10 (2), 208 –226.
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DOI: http://dx.doi.org/10.61426/sjbcm.v10i2.2604
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