THE INFLUENCE OF PROCUREMENT PRACTICES ON PERFORMANCE OF THE PUBLIC SECTOR IN KENYA. A CASE OF NAROK COUNTY
Abstract
This study sought to find the influence of procurement practices on performance of the public sector in Kenya. A case of Narok County. Specifically, the study sought to determine the influence of Supplier Partnerships on Performance of Narok County; to find out the influence of Information and Communication Technology (ICT) adoption on Performance of Narok County; to establish the impact of adoption of Green Purchasing Policy on Performance of Narok County; and to find out the influence of Procurement Planning on Performance of Narok County. The study used a descriptive survey research design and the population of this study was the employees and management of Narok County. The study adopted stratified sampling because the population of interest was heterogeneous in nature. The study used a sample size of 196 respondents. Further, the study used structured questionnaires as the main instruments for collecting primary data from respondents. Data collected was first edited, formatted and organized for coding into the Statistical Package for Social Sciences (SPSS) Program. The statistical parameters generated from the software were presented in tables and charts for easier interpretation. Multiple Linear Regression Analysis was used to estimate the relationship between the dependent and independent variables, and provide a means of objectivity in assessing the degree and nature of the relationship between the dependent and independent variables. The study established that Supplier Partnerships, ICT Adoption, Green Purchasing Policy, and Procurement Planning influenced 77.1% of the total variability in the Performance of the County. This was quite a significant influence and therefore the study recommended adoption of this procurement practices in all procurement processes in the entire public sector so has to enhance performance and delivery of service.
Key Words: Supplier Partnerships, Information and Communication Technology, Green Purchasing Policy, Procurement Planning, Narok County
Full Text:
PDFReferences
Adamson, K. A., & Prion, S. (2013). Reliability: measuring internal consistency using Cronbach's α. Clinical Simulation in Nursing, 9(5), e179-e180.
Anabah, J. W. (2015). Challenges to the Public Procurement Act implementation within the Municipal and District Assemblies in the Upper East Region of Ghana (Doctoral dissertation).
Apiyo, R. O., & Mburu, D. K. (2014). Factors affecting procurement planning in county governments in Kenya, case study of Nairobi City County. International Journal of Economics, Commerce and Management, 2(11), 1-34.
Arifin, W. N. (2013). Introduction to sample size calculation. Education in Medicine Journal, 5(2).
Arrowsmith, S., Treumer, S., Fejø, J., & Jiang, L. (2011). Public procurement regulation: an introduction.
Arshad, R., & Zain, N. M. (2017). Performance Measurement and Accountability of WAQF Institutions in Malaysia. In SHS Web of Conferences (Vol. 36, p. 00005). EDP Sciences.
Asante, E. (2017). Factors affecting procurement performance in public sectors in Ghana: A case of Kintampo Municipal Assembly (Doctoral dissertation, Kwame Nkrumah University).
Augustin, N. H., Sauleau, E. A., & Wood, S. N. (2012). On quantile quantile plots for generalized linear models. Computational Statistics & Data Analysis, 56(8), 2404-2409.
Babbie, E. (2015). The practice of social research. Nelson Education.
Badaso, C. J. (2014). Challenges of implementing procurement policies in state corporations in Kenya. European Journal of Business and Management, 6(3), 56-61.
Baier, C., Hartmann, E., & Moser, R. (2008). Strategic alignment and purchasing efficacy: an exploratory analysis of their impact on financial performance. Journal of Supply Chain Management, 44(4), 36-52.
Balabonienė, I., & VEčERSKIENė, G. (2015). The Aspects of Performance Measurement in Public Sector Organization. Procedia-Social and Behavioral Sciences, 213, 314-320.
Baruch, Y., & Holtom, B. C. (2008). Survey response rate levels and trends in organizational research. Human relations, 61(8), 1139-1160.
Basheka, B. C. (2009). Procurement planning and local governance in Uganda: A factor analysis approach. International Journal of Procurement Management, 2(2), 191-209.
Basheka, B. C., & Bisangabasaija, E. (2009). Determinants of unethical public procurement in local government systems of Uganda: a case study. International Journal of Procurement Management, 3(1), 91-104.
Basheka, B. C., Oluka, P. N., & Mugurusi, G. (2015). Citizen-driven approaches for combating public procurement corruption in Uganda's local government systems: an empirical survey. International Journal of Logistics Systems and Management, 21(4), 442-464.
Bashir, M., Afzal, M. T., & Azeem, M. (2008). Reliability and validity of qualitative and operational research paradigm. Pakistan journal of statistics and operation research, 4(1).
Belderbos, R., Carree, M., Lokshin, B., & Sastre, J. F. (2015). Inter-temporal patterns of R&D collaboration and innovative performance. The Journal of Technology Transfer, 40(1), 123-137.
Brammer, S., & Walker, H. (2011). Sustainable procurement in the public sector: an international comparative study. International Journal of Operations & Production Management, 31(4), 452-476.
Brandes, O., Brege, S., & Brehmer, P. O. (2013). The strategic importance of supplier relationships in the automotive industry. International Journal of Engineering Business Management, 5, 17.
Bryman, A., & Bell, E. (2015). Business research methods. Oxford University Press, USA.
Bryson, J. M. (2018). Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement. John Wiley & Sons.
Chebii, L. D. (2016). Determinants of Successful Implementation of E-Procurement in Public Institutions in Kenya. International Journal of Economics, Commerce and Management, 4(4), 1125-1136.
Chelladurai, P. (2014). Managing organizations for sport and physical activity: A systems perspective. Taylor & Francis.
Chemoiywo, P. K. (2014). Public procurement procedures and supply chain performance in state corporations in Kenya. An unpublished master’s thesis of the University of Nairobi.
Chiou, T. Y., Chan, H. K., Lettice, F., & Chung, S. H. (2011). The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan. Transportation Research Part E: Logistics and Transportation Review, 47(6), 822-836.
Coggburn, J. D. (2017). Exploring differences in the American states’ procurement practices. Journal of Public Procurement, 3(1), 3-28.
Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. (2013). Applied multiple regression/correlation analysis for the behavioral sciences. Routledge.
Cooper, D. R., & Schindler, P. S. (2011). Business research methods. Singapore: McGraw-Hill.
Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.
Crowder, M. (2015). Public procurement: the role of cognitive heuristics. Public Money & Management, 35(2), 127-134.
Davis, M. J. (2014). Procurement practices influencing service delivery: A case of Kenya Power. European Journal of Logistics Purchasing and Supply Chain Management, 2(3), 79-137.
de Sousa Jabbour, A. B. L., Alves Filho, A. G., Viana, A. B. N., & Jabbour, C. J. C. (2011). Factors affecting the adoption of supply chain management practices: Evidence from the Brazilian electro-electronic sector. IIMB Management Review, 23(4), 208-222.
Dillman, D. A., Smyth, J. D., & Christian, L. M. (2014). Internet, phone, mail, and mixed-mode surveys: the tailored design method. John Wiley & Sons.
Dubey, R., Gunasekaran, A., Papadopoulos, T., Childe, S. J., Shibin, K. T., & Wamba, S. F. (2017). Sustainable supply chain management: framework and further research directions. Journal of Cleaner Production, 142, 1119-1130.
Fawcett, S. E., Magnan, G. M., & McCarter, M. W. (2008). Benefits, barriers, and bridges to effective supply chain management. Supply Chain Management: An International Journal, 13(1), 35-48.
Fishbein, M., & Ajzen, I. (2011). Predicting and changing behavior: The reasoned action approach. Taylor & Francis.
Foroughi, A. (2008). MRO and eProcurement: Opportunities and Challenges. University of Southern Indiana.
Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge university press.
Garson, G. D. (2012). Hierarchical linear modeling: Guide and applications. Sage.
Gattorna, J. (2016). ‘Requisite’Collaboration in Enterprise Supply Chains John Gattorna. In Dynamic Supply Chain Alignment (pp. 81-86). Routledge.
Githeu, C. N. (2014). Supply Chain Management Practices and Performance of Commercial Banks in Kenya. MBA Dissertation, University of Nairobi.
Greene, R. R. (2017). General systems theory. In Human behavior theory and social work practice (pp. 171-204). Routledge.
Grönroos, C., & Helle, P. (2010). Adopting a service logic in manufacturing: Conceptual foundation and metrics for mutual value creation. Journal of Service Management, 21(5), 564-590.
Guth, S. (2010, April). Implementing best practices: The procurement maturity model. In Proceeding of the 95th ISM Annual International Supply Management Conference.
Hargie, O., & Tourish, D. (Eds.). (2009). Auditing organizational communication: A handbook of research, theory and practice. Routledge.
Jerinabi, U., & Santhi, P. (Eds.). (2012). Creativity, Innovation and Entrepreneurship (Vol. 1). Allied Publishers.
Kalatya, B. (2017). Influence of Procurement Practices on Performance of Logistic Firms in Kenya. Strategic Journal of Business & Change Management, 4(4).
Kamaamia, A. T. (2016). The Effect of Organizational Culture on Organizational Performance: A Case of Kenya School of Monetary Studies (Ksms) (Doctoral dissertation, United States International University).
Khidir ElTayeb, T., Zailani, S., & Jayaraman, K. (2010). The examination on the drivers for green purchasing adoption among EMS 14001 certified companies in Malaysia. Journal of Manufacturing Technology Management, 21(2), 206-225.
Khiewnavawongsa, S., & Schmidt, E. K. (2008). Green Supply Chain Management: Green power to the supply chain. University of Purdue.
Khisa, J. N. (2011). Green procurement practices in the public sector: The case of parastatals in Kenya. Unpublished masters’ project, University of Nairobi, Nairobi, Kenya.
Kilonzo, G. M. (2014). Procurement best practices and organizational performance: case study of Cadbury’s Kenya limited (Doctoral dissertation, University of Nairobi).
Kim, M., Suresh, N. C., & Kocabasoglu-Hillmer, C. (2015). A contextual analysis of the impact of strategic sourcing and E-procurement on performance. Journal of Business & Industrial Marketing, 30(1), 1-16.
Kimutai, B., & Ismael, N. S. (2016). Role of strategic e-sourcing practices on supply chain performance in state corporations in Kenya: A case of Kenya Electricity Generating Company Ltd. International Academic Journal of Procurement and Supply Chain Management, 2(2), 113-133.
Kingori, M. (2013). The effect of e-procurement on supply chain management at teachers’ service commission. International Journal of Social Sciences and Entrepreneurship, 3(4), 17-20.
Kinuthia, D. W., & Abdallah, I. A. (2015). Effects of Information Communication Technology Adoption on Procurement Process in Kenya’s Oil Industry: A Survey of Total Kenya Limited Mombasa County. International Journal of Management and Commerce Innovations, 2(2).
Knight, L., Harland, C., Telgen, J., Thai, K. V., Callender, G., & McKen, K. (Eds.). (2012). Public procurement: International cases and commentary. Routledge.
Koech, K., & Namusonge, G. S. (2015). Factors affecting procurement performance of the National Treasury in Kenya. International Journal of Social Sciences Management and Entrepreneurship, 2(2), 115-131.
Kombo, D. K., & Tromp, D. L. (2011). A (2006) Proposal and Thesis Writing. An Introduction. Nairobi. Pauline’s publication Africa.
Kothari, C. R. (2011). Research Methodology: Methods and Techniques. New Delhi: New Age International Ltd.
Koufteros, X., Verghese, A. J., & Lucianetti, L. (2014). The effect of performance measurement systems on firm performance: A cross-sectional and a longitudinal study. Journal of Operations Management, 32(6), 313-336.
Ku, E. C., Wu, W. C., & Chen, Y. J. (2016). The relationships among supply chain partnerships, customer orientation, and operational performance: the effect of flexibility. Information Systems and e-Business Management, 14(2), 415-441.
Kumar, R., Singh, R. K., & Shankar, R. (2015). Critical success factors for implementation of supply chain management in Indian small and medium enterprises and their impact on performance. IIMB Management Review, 27(2), 92-104.
Lacroix, R. N. (2008). Green procurement and entrepreneurship. Harokopeio University.
Laplume, A. O., Sonpar, K., & Litz, R. A. (2008). Stakeholder theory: Reviewing a theory that moves us. Journal of management, 34(6), 1152-1189.
Lee, S. Y. (2008). Drivers for the participation of small and medium-sized suppliers in green supply chain initiatives. Supply Chain Management: An International Journal, 13(3), 185-198.
Lewis, M. A., & Roehrich, J. K. (2009). Contracts, relationships and integration: towards a model of the procurement of complex performance. International Journal of Procurement Management, 2(2), 125-142.
Lewis, S. (2015). Qualitative inquiry and research design: Choosing among five approaches. Health promotion practice, 16(4), 473-475.
Lin, Y., & Wu, L. Y. (2014). Exploring the role of dynamic capabilities in firm performance under the resource-based view framework. Journal of business research, 67(3), 407-413.
Lohr, S. (2009). Sampling: design and analysis. Nelson Education.
Mahmood, S. A. I. (2010). Public procurement and corruption in Bangladesh confronting the challenges and opportunities. Journal of public administration and policy research, 2(6), 103.
Manual, P. P. (2009). IT Procurement Planning and Strategic Sourcing. Vaginia Information Technologies Agency.
Marshall, D., McCarthy, L., Claudy, M., & McGrath, P. (2017). Piggy in the Middle: How Direct Customer Power Affects First-Tier Suppliers’ Adoption of Socially Responsible Procurement Practices and Performance. Journal of Business Ethics, 1-22.
Masiko, D. M. (2013). Strategic procurement practices and procurement performance among commercial banks in Kenya. Unpublished MBA Project.
Meriläinen, S. (2018). Development of Early Supplier Involvement (ESI) Process–Study for a Case Company.
Meyer, R. M., & O’Brien‐Pallas, L. L. (2010). Nursing services delivery theory: an open system approach. Journal of Advanced Nursing, 66(12), 2828-2838.
Mihaiu, D. M., Opreana, A., & Cristescu, M. P. (2010). Efficiency, effectiveness and performance of the public sector. Romanian Journal of Economic Forecasting, 4(1), 132-147.
Miles, S. (2017). Stakeholder theory classification: A theoretical and empirical evaluation of definitions. Journal of Business Ethics, 142(3), 437-459.
Mokogi, W. N., Mairura, C., & Ombui, K. (2015). Effects of Procurement Practices on the Performance of Commercial State Owned Enterprises in Nairobi County. International Journal of Scientific and Research Publications, 5(6).
Mokogi, W. N., Mairura, C., & Ombui, K. (2015). Effects of Procurement Practices on the Performance of Commercial State Owned Enterprises in Nairobi County. International Journal of Scientific and Research Publications, 5(6).
Mose, J. M., Njihia, J. M., & Magutu, P. O. (2013). The critical success factors and challenges in e-procurement adoption among large scale manufacturing firms in Nairobi, Kenya. European Scientific Journal, ESJ, 9(13).
Mugenda, O. M., & Mugenda, A. G. (2012). Research methods dictionary.
Muiga, P. M., & Kwasira, J. (2016). Role of Strategic Procurement Practice in Realization of Corporate Goals in Public Secondary Schools in Molo Sub-County, Nakuru, Kenya. International Journal of Economics, Commerce and Management, 4(5).
Mukura, P. K., Shalee, N., Kanda, M. K., & Ngatia, P. M. (2016). Role of Public Procurement Oversight Authority on Procurement Regulations in Kenyan State Corporations. A Case of Kenya Electricity Generating Company (KenGen). International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(3), 190-201.
Musanga, M. B., Ondari, N. G., & Kiswili, N. E. (2015). Buyer-Supplier Relationship and Supplier Responsiveness: A Case of Manufacturing Firms Listed in Nairobi Stock Exchange, Kenya. International Journal of Economics, Commerce and Management, 3(4).
Muthuri, C. G., & Chirchir, M. K. (2014). Information and Communication Technology and Procurement Performance in Star Rated Hotels in Nairobi, Kenya.
Nderi, C. M. (2015). Procurement Planning Strategy and Service Delivery: A Case of Medecins Sans Frontieres, Kenya Supply Unit.
Ngatia, C. W., & Chirchir, M. K. (2013). Supply chain management practices and performance of Kenya tea development agency managed factories.
Ngunyi, C. I. (2014). Procurement Practices and the Performance of Parastatals in Kenya.
O’Toole Jr, L. J., & Meier, K. J. (2014). Public management, context, and performance: In quest of a more general theory. Journal of Public Administration Research and Theory, 25(1), 237-256.
Odero, J. A., & Ayub, S. E. (2017). Effect of Procurement Practices on Procurement Performance of Public Sugar Manufacturing Firms in Western Kenya. International Journal of Management Research and Reviews, 7(4), 521.
Odhiambo, P. O. (2014). Supply Chain Management Practices and Service Quality among Public Hospitals in Nairobi County, Kenya.
Oginda, E. (2013). Challenges of Implementing Procurement Strategy at the Kenya Power and Lighting Company Limited. International Journal of Social Sciences and Entrepreneurship, 3(4), 4-12.
Okong’o, N. N. (2016). Influence of Strategic Procurement on the Perormance of Public Enterprises in Kenya: A Case of Kenya Power Company Limited, Nairobi (Doctoral Dissertation, School of Humanities and Social Sciences, Kenyatta University).
Onchweri, N. N., & Muturi, W. (2015). Determinants of Compliance in Public Procurement Regulations in the Public Sector. A Case Study of Kisii County, Kenya. International Journal of Economics, Commerce and Management.
Onyinkwa, J. (2014). Factors Influencing Compliance to Procurement Regulations in Public Secondary Schools in Kenya: a case of Nyamache District, Kisii County (Doctoral dissertation).
Ordanini, A., & Rubera, G. (2008). Strategic capabilities and internet resources in procurement: A resource-based view of B-to-B buying process. International Journal of Operations & Production Management, 28(1), 27-52.
Oso, W. Y., & Onen, D. (2009). A general guide to writing research proposal and report. Nairobi: Jomo Kenyatta Foundation.
Otila, O., G. (2011). Supply Chain Management Practices used in the Cosmetic Industry in Kenya (Doctoral dissertation, School of Business, University of Nairobi).
Özbilgin, İ. G., & Imamoğlu, M. Y. (2011). The impact of dynamic purchasing systems in the electronic public procurement processes. Procedia Computer Science, 3, 1571-1575.
Panda, P., & Sahu, G. (2012). E-Procurement implementation: critical analysis of success factors' impact on project outcome.
Park, H. M. (2015). Univariate analysis and normality test using SAS, Stata, and SPSS.
Quesada, G., González, M. E., Mueller, J., & Mueller, R. (2010). Impact of e-procurement on procurement practices and performance. Benchmarking: An International Journal, 17(4), 516-538.
Richard, P. J., Devinney, T. M., Yip, G. S., & Johnson, G. (2009). Measuring organizational performance: Towards methodological best practice. Journal of management, 35(3), 718-804.
Richard, P. J., Devinney, T. M., Yip, G. S., & Johnson, G. (2009). Measuring organizational performance: Towards methodological best practice. Journal of management, 35(3), 718-804.
Rotich, G. K., & Okello, B. (2015). Analysis of use of e-procurement on performance of the procurement functions of County Governments in Kenya. International Journal of Economics, Commerce and Management, 3(6), 1381-1398.
Saris, W. E. (2014). Design, evaluation, and analysis of questionnaires for survey research. International Statistical Review, 76(2), 317-318.
Scarsi, R., & Cepolina, S. (2016). Technology innovation enabling supply chain management sustainability. A framework for the apparel industry. International Journal of Technology Transfer and Commercialisation, 14(2), 196-213.
Scott, W. R., & Davis, G. F. (2015). Organizations and organizing: Rational, natural and open systems perspectives. Routledge.
Seurey, T. T. (2015). Effects of Strategic Procurement on Competitiveness of Commercial Banks Operating In Kenya. A Case Study of Standard Chartered Bank Limited Kenya. IOSR Journal of Business and Management (IOSR-JBM), 17(2), 77-89.
Shu Hui, W., Othman, R., Hj Omar, N., Abdul Rahman, R., & Husna Haron, N. (2011). Procurement issues in Malaysia. International journal of public sector Management, 24(6), 567-593.
Sun, X., & Collins, R. (2009, July). Systems thinking, relationship management and supply chains. In Proceedings of the 53rd Annual Meeting of the ISSS-2009, Brisbane, Australia (Vol. 1, No. 1).
Tanner, C., Wölfle, R., Schubert, P., & Quade, M. (2008). Current trends and challenges in electronic procurement: an empirical study. Electronic Markets, 18(1), 6-18.
Tejada, J. J., & Punzalan, J. R. B. (2012). On the misuse of Slovin’s formula. The Philippine Statistician, 61(1), 129-136.
Testa, F., Iraldo, F., Frey, M., & Daddi, T. (2012). What factors influence the uptake of GPP (green public procurement) practices? New evidence from an Italian survey. Ecological Economics, 82, 88-96.
Thai, K. V. (Ed.). (2008). International handbook of public procurement. CRC Press.
Tukamuhabwa, B. R. (2012). Antecedents and consequences of public procurement non-compliance behavior. Journal of Economics and Behavioral studies, 4(1), 34-46.
Vander Elst, S., & De Rynck, F. (2014). Alignment processes in public organizations: An interpretive approach. Information Polity, 19(3, 4), 195-206.
Vlosky, R. P., Fontenot, R. J., & Blalock, L. (2015). Extranet Mediated Business Linkages: Effects on Buyer-Seller Relationships. In Proceedings of the 1999 Academy of Marketing Science (AMS) Annual Conference (pp. 415-419). Springer, Cham.
Wagner, M., E., Alves, H., & Raposo, M. (2012). A model for stakeholder classification and stakeholder relationships. Management decision, 50(10), 1861-1879.
Walker, H., Di Sisto, L., & McBain, D. (2008). Drivers and barriers to environmental supply chain management practices: Lessons from the public and private sectors. Journal of purchasing and supply management, 14(1), 69-85.
Walker, H., Mayo, J., Brammer, S., Touboulic, A., & Lynch, J. (2012, August). Sustainable procurement: an international policy analysis of 30 OECD countries. In 5th International Public Procurement Conference (pp. 3556-3582).
Weeks, M. P., & Namusonge, G. S. (2016). Influence of Information Technology Practices in Procurement on Organization Performance in Public Institutions in Kenya. International Journal of Economics, Commerce and Management, 4(5).
Wei, G., & Jakob, R. (2012). Vertical integration in supply chains: driving forces and consequences for a manufacturer's downstream integration, Supply Chain Management. An International Journal, Vol. 17 Issue: 2, pp.187-201.
Wong, C. Y., Boon-Itt, S., & Wong, C. W. (2011). The contingency effects of environmental uncertainty on the relationship between supply chain integration and operational performance. Journal of Operations management, 29(6), 604-615.
Wong, C., Skipworth, H., Godsell, J., & Achimugu, N. (2012). Towards a theory of supply chain alignment enablers: a systematic literature review. Supply Chain Management: An International Journal, 17(4), 419-437.
Wu, L., & Chuang, C. H. (2010). Examining the diffusion of electronic supply chain management with external antecedents and firm performance: A multi-stage analysis. Decision support systems, 50(1), 103-115.
Yee-Loong Chong, A., & Ooi, K. B. (2008). Adoption of interorganizational system standards in supply chains: an empirical analysis of RosettaNet standards. Industrial Management & Data Systems, 108(4), 529-547.
DOI: http://dx.doi.org/10.61426/sjbcm.v5i2.773
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.