Influence of Procurement Quality Management on Performance of Manufacturing Firms in Kenya
DOI:
https://doi.org/10.47941/ijscl.1267Keywords:
Process Management, Continuous Improvement, Supplier Management And Customer FocusAbstract
Purpose: The overall objective of this study was to examine the influence of procurement quality management on performance of manufacturing firms in Kenya, with an aim of making recommendations on proper use of procurement quality management in the manufacturing sector. The study aimed to establish how process management, continuous improvement, supplier management and customer focus influence performance of manufacturing firms
Methodology: This research study adopted a descriptive research design. The researcher preferred this method because it allowed an in-depth study of the subject. To gather data, structured questionnaire was used to collect data. The study population was the manufacturing firms in Nairobi; the respondents were the designated heads of procurement of these firms. 200 heads of procurement were selected using stratified random sampling. Once collected, data was analyzed using descriptive and inferential statistics.Quantitative data was analyzed using multiple regression analysis. The qualitative data generated was analyzed by use of Statistical Package of Social Sciences (SPSS) version 24.
Results and conclusion: The response rate of the study was 86%. The findings of the study indicated that process management, continuous improvement, supplier management and customer focus have a positive relationship with performance in manufacturing firms. The regression results revealed that procurement quality management practices identified in the study, that is, process management, continuous improvement, supplier management and customer focus combined could explain approximately 66.3% of the variations in the performance of manufacturing firms. The other 33.7% may be attributed to other strategies not explained by the model or the variables.
Unique Contribution to Theory, Policy and Practice: The study recommended that manufacturing firms should embrace procurement total quality practices so as to improve their performance and further researches should to be carried out in other institutions to find out if the same results can be obtained.
Downloads
References
Achuora, J., Guyo, H., Arasa, R., & Odhiambo, J. (2020). Firm-specific determinants of technical efficiency in manufacturing firms in Kenya. Journal of Manufacturing Technology Management, 31(1), 221-236. https://doi.org/10.1108/JMTM-08-2019-0321
Ahire, S. L., & Dreyfus, P. (2020). The impact of just-in-time manufacturing and its infrastructure on manufacturing performance. International Journal of Production Economics, 71(1-3), 195-202.
Al-Mashari, M., & Zairi, M. (2021). Business process reengineering and the challenges of procurement in the Gulf Cooperation Council (GCC) countries. Business Process Management Journal, 7(3), 224-237. https://doi.org/10.1108/14637159910285066
Awino, O. (2021). An empirical investigation of supply chain management on firms’ performance. International Journal of Business Administration and Management, 3(7) 2-6.
Bahri, S., Hamzah, R., & Yusuf, R. O. (2022). Collaboration between procurement and internal customers for effective supply chain management. International Journal of Procurement Management, 15(1), 1-17.
Bilich, F., & Neto, A. (2020). Total quality management: quality macro-function model for banks. Total Quality Management, 11(1), 5-15
CCG. (2020). Kenya economic report 2019. CCG Catalyst Consulting Group. https://www.ccg-catalyst.com/kenya-economic-report-2019/
Dale, B. G. (2020). Managing quality. John Wiley & Sons.
Demirbag, M., Tatoglu, E., Tekinkus, M., & Zaim, S. (2020). An analysis of quality management practices in Turkish manufacturing industry. International Journal of Quality & Reliability Management, 17(8), 886-902. https://doi.org/10.1108/02656710010293612
Eriksson, T., & Hansson, P. (2021). Resource-based theory: How firms gain competitive advantage through resources. European Journal of Marketing, 26(4), 5-29.
Evans, J. R., & Dean, J. W. (2022). Total quality: Management, organization, and strategy. South-Western Educational Publishing.
GoK. (2022). Manufacturing sector policy. Government of Kenya. https://www.industrialization.go.ke/downloads/category/10-manufacturing-sector-policy.html
Hadavand, M. (2020). Strategic Procurement and Corporate Performance: The Role of Environmental Uncertainty. Journal of Supply Chain Management, 36(3), 38-52.
Hoyer, W. D., & Hoyer, J. L. (2021). The role of resources in competitive advantage: The resource-based view. Handbook of strategic marketing, 20(1), 43-62.
Investment Climate Assessment Report. (2021). World Bank Group. https://www.worldbank.org/en/country/kenya/publication/kenya-investment-climate-assessment-report-2021
Kenya Association of Manufacturers (KAM). (2022). Manufacturing statistics in Kenya. https://kam.co.ke/manufacturing-statistics-in-kenya/
Kenya National Bureau of Statistics (KNBS). (2021). Kenya Vision 2030. https://www.knbs.or.ke/kenya-vision-2030/
Kirungu, C. W. (2022). Procurement procedures and supply chain performance: A case study of Kenyatta National Hospital. International Journal of Logistics and Supply Chain Management, 17(3), 88-98.
Malik, M. A., Butt, A. N., & Javed, M. (2020). The impact of procurement quality management on firm performance: A study of manufacturing firms in Pakistan. Journal of Supply Chain Management, 36(2), 28-37.
Masters, J. M. (2021). The relationship between TQM and employee empowerment in the U.S. automobile industry. International Journal of Quality & Reliability Management, 18(8), 786-803. https://doi.org/10.1108/02656710010360117
Meegan, R., & Taylor, D. (2020). Quality management and continuous improvement in manufacturing firms in Ireland. International Journal of Quality & Reliability Management, 17(6), 568-582. https://doi.org/10.1108/02656710010285728
PPRA. (2020). Public procurement regulatory authority. Government of Kenya. https://www.ppra.go.ke/
Rotich, J. K. (2021). Role of manufacturing industry in economic development: A case study of Kenya. International Journal of Business and Social Science, 2(14), 23-40. https://www.researchgate.net/publication/313595804_Role_of_Manufacturing_Industry_in_Economic_Development_A_Case_Study_of_Kenya
United Nations Environment Programme (UNEP). (2020). State of environment in Kenya. https://www.unep.org/resources/state-environment-kenya
World Bank. (2020). Kenya economic update: From economic growth to jobs and shared prosperity. https://www.worldbank.org/en/country/kenya/publication/kenya-economic-update-from-economic-growth-to-jobs-and-shared-prosperity
Downloads
Published
How to Cite
Issue
Section
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.
