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INFLUENCE OF SUPPLIER EVALUATION CRITERIA ON PERFORMANCE OF METALS AND ALLIED FIRMS IN KENYA

Mary Nyambura Kimani, Dr. Patrick Mwangangi

Abstract


Purpose: This study aimed at examining the influence of supplier evaluation on performance of metal and allied firms in Kenya by focusing on supplier’s financial capability, supplier’s regulatory compliance, supplier’s technical capability and supplier’s level of human resource competency. The study was guided by Lean Supplier Competence Model, Institutional Theory, Resource Based Theory and Social Exchange Theory.

Methodology: The population target of the study comprised of 213 respondents drawn from managerial, supervisory and junior positions in procurement departments in all 71 metal and allied firms in Kenya. The study adopted a census method where it included all members of the target population. Questionnaires and data collection sheets were used to collect primary and secondary data respectively. The collected data was coded and analyzed qualitatively and quantitatively through Statistical Package for Social Sciences (SPSS) version 21. Data was analyzed using both descriptive and inferential statistics where regression analysis was used to establish the effect of independent variables on the dependent variable. Descriptive and inferential results were presented in form of tables and figures. Pilot study was conducted prior data collection to test reliability and validity of data collection instruments.

Results: The findings of the study revealed that supplier’s financial capability, supplier’s regulatory compliance, supplier’s technical capability and supplier’s level of human resource competence have a positive and significant influence on performance of metal and allied firms in Kenya.

Recommendations: The study recommends that metal and allied firms should focus on supplier’s financial capability, supplier’s regulatory compliance, supplier’s technical capability and supplier’s level of human resource competence when conducting supplier’s evaluation  since the practices have a positive and significant influence on performance of metal and allied firms.



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Keywords


Financial Capability, Regulatory Compliance, Technical Capability, Level Of Human Resource Competence And Performance Of Metal And Allied Firms.

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