INFLUENCE OF SUPPLIER COMPETENCE ON THE PERFORMANCE OF STATE CORPORATIONS IN KENYA

Abstract

Purpose: The purpose of this study was to determine the influence of supplier competence on the performance of state corporations in Kenya

Methodology: The study adopted cross-sectional survey design using both quantitative and qualitative approaches. The target population was all the 187 state corporations in Kenya. The study employed a census approach. Primary data was collected using questionnaires. A pilot study was conducted to measure the research instruments reliability and validity. Descriptive statistics were used aided by Statistical Packages for Social Sciences version 24 to compute percentages of respondents' answers. Inferential statistics using linear regression and correlation analysis were applied to assist examining relationship between the research variables. The results were presented using tables and graphs.

Results: The findings revealed that supplier competence explained 44.1 % of the total variations in performance of state corporations in Kenya. Further, the results indicated that the overall model was statistically significant as supported by a p value of 0.000. This was supported by an F statistic of 111.904 and the reported p value (0.000) which was less than the conventional probability of 0.05 significance level. In addition, the findings show that there is a positive and significant relationship between supplier competence and performance of state corporations in Kenya as supported by a p value of 0.000 and a beta coefficient of (0.903). This implies that an increase in supplier competence by 1 unit would increase the performance of state corporations by 0.903units.

Unique contribution to theory, practice and policy:  Based on the findings, the study recommended that suppliers should develop competent technical abilities so as to provide high quality products or services. Some of the technical dimensions that suppliers should develop competence in include; compliance with quantity, compliance with due date, compliance with packaging standard, production planning systems of suppliers, and maintenance activities of suppliers, plant layout and material. It's also recommended that state corporations in Kenya should check frequently if supplier organisation is abreast with the newer information technology developments as technology is very dynamic and changes regularly as the technology that was used in the past is not the one we using now and it will not be the one we will use tomorrow.