INFLUENCE OF STRATEGIC MANAGEMENT PRACTICES ON PROCUREMENT PERFORMANCE IN STATE CORPORATIONS IN KENYA: A CASE OF GEOTHERMAL DEVELOPMENT COMPANY LTD (GDC)
Abstract
The study sought to examine the influence of strategic management on procurement performance in state corporations in Kenya, a case study of Geothermal Development Company as its general objective. The study was conducted through a descriptive survey research design. The study involved 70 GDC staff, and that it was guided by research questions based on the objectives aforementioned. Descriptive statistics were used aided by Statistical Package for Social Scientists (SPSS) to compute percentages of respondents’ answers. Inferential statistics using, multiple regression and correlation analysis were applied to aid examining the relationship between the research variables at .05 level of significance. Tables and charts were used to present the analyzed results. It was notable that there exist strong positive relationship between the independent variables and dependent variable as shown by R value (0.881). The coefficient of determination (R2) was used to measure how far the regression model’s ability to explain the variation of the independent variables. The coefficient of determination was between zero and one. The data showed that the high R square was 0.776. It showed that the independent variables in the study were able to explain 77.60% variation in the procurement performance in the organization while the remaining 22.40% was explained by the variables or other aspects outside the model. This implied that these variables were very significant and they therefore need to be considered in any effort to boost procurement performance in the state corporations in Kenya Based on the study findings, the study concluded that procurement performance in state corporations in Kenya was affected by strategic planning, strategic leadership, strategic supplier management and strategic training as the major factors that mostly affect implementation of procurement performance in state corporations in Kenya The study contributed to the existing literature in the field of public procurement by elaborating exiting theories, models and empirical studies on procurement performance in state corporations. The current study should therefore be expanded in future in order to determine the other factors hindering procurement performance in state corporations in Kenya.
Key Words: Strategic Planning, Strategic Leadership, Strategic Supplier Management, Strategic Training, Strategic management
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i2.668
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