Procurement Outsourcing Strategies and Performance of Cement Manufacturing Companies in Machakos County, Kenya
DOI:
https://doi.org/10.47941/ijscl.4098Keywords:
Procurement Outsourcing Strategies, Category-Specific Outsourcing, End-To-End Outsourcing, Cement Manufacturing CompaniesAbstract
Purpose: This study focused on establishing the effects of procurement outsourcing strategies on performance of cement manufacturing companies in Machakos County, Kenya. This study was guided by Contingency Theory and Systems Theory.
Methodology: This study adopted a descriptive research design and focused on the seven cement manufacturing firms operating in Kenya: Bamburi Cement Limited, East Africa Portland Cement Company, ARM Africa Limited, Mombasa Cement, Savannah Cement, National Cement, and Lafarge Cement. The target population comprised 150 Procurement, Logistics, Finance, and Administrative Officers, who were selected due to their knowledge of procurement outsourcing practices. Using the Krejcie and Morgan (1970) formula, a sample size of 109 respondents was determined. Stratified random sampling was employed to categorize respondents into relevant strata, while simple random sampling was used to select participants from each stratum. Primary data were collected using questionnaires. Data analysis involved both descriptive and inferential statistics with the aid of SPSS version 25, and findings were presented using tables and figures.
Findings: The study concludes that category-specific outsourcing has a positive and significant effect on performance of cement manufacturing companies in Machakos County, Kenya. The study also concludes that end-to-end outsourcing has a positive and significant effect on performance of cement manufacturing companies in Machakos County, Kenya.
Unique Contribution to Theory, Policy and Practice: Based on the findings, the study recommends that cement manufacturing companies in Kenya should evaluate the performance of outsourcing providers regularly, establish clear contractual obligations and ensure that outsourced activities align with organizational objectives.
Downloads
References
Adda, G. (2021). Examining the relationship between procurement outsourcing strategies and organizational performance of Ghanaian firms: How does strategic procurement drive organizational success? Management and Sustainability, 9(2), 20-28.
Baine, F. (2022). Tactical procurement outsourcing and service delivery in local government case study: Masaka District Local Government (MDLG). Retrieved from http://196.43.180.24/bitstream/handle/
Dantes, G. R., & Hasibuan, Z. A. (2020). Strategically and tactical outsourcing impact on ERP implementation: case study on ERP implementation in Indonesia. Retrieved from https://www.researchgate.net/profile/
Effa, G. A., Ovharhe, O. H., Ezirim, A. C., & Igwe, S. (2022). Procurement outsourcing strategies and logistics performance in Nigeria. International Journal of Marketing and Communication Studies, 7(1), 31-49.
Giathi, V. M., Abayo, R., & Muhoho, J. (2021). Procurement outsourcing strategies on performance of public institutions in Kenya: a case of National Transport and Safety Authority. International Academic Journal of Human Resource and Business Administration, 3(9), 434-463.
Iranpour, R, Shakeri, R., & Ahmadi, K. (2022). Providing a model for developing human resource outsourcing strategy in the public sector of Iran. Scientific Journal of Research in Human Resources Management, 14(2), 71-101
Isaac, A. R. (2022). The effect of procurement outsourcing strategies on public procurement performance in the Kenyan National Treasury. Retrieved from https://d1wqtxts1xzle7.cloudfront.net/
Kamau, J., & Thogori, M. (2023). Influence of procurement outsourcing strategies on procurement performance of tier one Commercial Banks in Kenya. International Journal of Social Science Management and Entrepreneurship, 7(11), 236-248.
Kanyarat, T., & Ungul, L. (2023). The impact of procurement outsourcing strategies and e-procurement on supply chain performance management. Retrieved from https://d1wqtxts1xzle7.cloudfront.net/
Kialyulo, M., & Kinyua, G. M. (2021) conducted a study on the effect of an empirical analysis of the relationship between strategic outsourcing and performance of Kenya Commercial Bank in Kenya. International Journal of Innovative Research and Advanced Studies, 8(3), 24-30
Liban, A. J., & Ibrahim, H. M. (2022). The impact of procurement outsourcing strategies on organizational performance. Journal of Logistics, Informatics and Service Science, 11(1), 119-135.
Mohamed, A., & Abdullahi, H. (2021). End-to-end outsourcing and organizational performance among telecommunication companies in Somalia. African Journal of Business and Economic Research, 16(4), 121–138.
Muhammad, F., & Danish, A. S. (2024). The impact of procurement outsourcing strategies on supply chain performance: A case of b2b procurement in Pakistani industry. Retrieved from https://d1wqtxts1xzle7.cloudfront.net/
Muo, C., & Sei, B. O. (2023). Strategic outsourcing and firm performance: a review of literature. International Journal of Social Science and Humanities Research, 1(1), 20-29
Mutua, C. N., & Juma, D. (2020). Influence of procurement outsourcing strategies on procurement performance of Kenyan Commercial Banks. The Strategic Journal of Business & Change Management, 5(2), 1415-1445.
Muvunyi, G., & Mulyungi, P. (2022). The effect of procurement outsourcing strategies on procurement performance of manufacturing sector in Rwanda: A Case Study of Bralirwa Ltd. International Journal of Research in Management, Economics and Commerce, 8(5), 152-158.
Muwolya, D. A. (2023). The impact of procurement outsourcing strategies on organizational performance. Retrieved from https://irbackend.kiu.ac.ug/server/api/
Mwangi, P., & Njoroge, J. (2022). End-to-end outsourcing and organizational performance among commercial banks in Nairobi County, Kenya. Journal of Strategic Management, 6(4), 83–101.
Mwangi, P., & Wanyoike, D. (2022). Category-specific outsourcing and organizational performance among commercial banks in Nairobi County, Kenya. Journal of Strategic Management, 6(4), 92–109.
Ndonye, D. M, Wandiga, E. N., & Odiyo, W. J. O. (2024). An empirical survey on the relationship between tactical outsourcing influence and organizational effectiveness of freight forwarding firms in Nairobi City County, Kenya. International Academic Journal of Innovation, Leadership and Entrepreneurship, 2(4), 106-127.
Nsowah, J., & Phiri, M. A. (2023). Effect of outsourcing strategies on the operational performance of small and medium scale enterprises in Ghana. International Journal of Environmental Sustainability and Social Science, 4(3), 908-914.
Ogaja, C. K., & Kimiti, G. K. (2023). Influence of strategic leadership on implementation of tactical outsourcing decisions in public universities in Kenya. International Journal of Science and Research, 5(1), 681-689
Omondi, D., & Wekesa, M. (2021). End-to-end outsourcing and organizational performance among public universities in Kenya. International Academic Journal of Human Resource and Business Administration, 4(3), 98–115
Othman, H., Ibrahim, I., Amer, A & Masrom, N, R. (2020). Influence of procurement outsourcing strategies on manufacturing performance an empirical study in continental tyre. Retrieved from, https://www.researchgate.net/profile/Hasbullah.
Thrulogachantar, P., & Suhaiza, Z. (2024). The influence of procurement outsourcing strategies on manufacturing performance. An empirical study in Malaysia. Journal of Manufacturing Technology Management, 22(5), 641-663.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Alice Wandia Kasyoka, Dr. Charles Ndeto
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
