Influence of Procurement Key Performance Indicators on The Performance of State Agencies in Kenya

Authors

  • Bernard Mong’eri Ndemo Jomo Kenyatta University of Agriculture and Technology
  • Dr. John Achuora Jomo Kenyatta University of Agriculture and Technology
  • Dr. John Achuora Jomo Kenyatta University of Agriculture and Technology

DOI:

https://doi.org/10.47941/ijscl.467
Abstract views: 535
PDF downloads: 282

Keywords:

Cost management, quality index management, delivery management and asset utilization management

Abstract

Purpose: The purpose of the study was to examine influence of procurement key performance indicators on the performance of state agencies in Kenya with an aim of making recommendations on proper us

Methodology: The study employed a descriptive research design, targeting the 127 heads of procurement in state agencies in Kenya, who were selected using simple random sampling, from the four strata. The researcher preferred this method because it allows an in-depth study of the subject. Data was collected using self-administered questionnaires. Structured questionnaires were used to collect data. 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 22. The response rate of the study was 82%.

Results and conclusion: The results indicate that there is a positive relationship (r=.509) between cost management and performance of state agencies in Kenya. In addition, the researcher found the relationship to be statistically significant at 5% level (p=0.000, <0.05). The results also indicate that there is a positive relationship (r=.398) between quality index management and performance of state agencies in Kenya. In addition, the researcher found the relationship to be statistically significant at 5% level (p=0.000, <0.05). The results indicate that there is a positive relationship (r=.678) between delivery management and performance of state agencies in Kenya. In addition, the researcher found the relationship to be statistically significant at 5% level (p=0.000, <0.05). The results indicate that there is a positive relationship (r=.685) between asset utilization management and performance of state agencies in Kenya. In addition, the researcher found the relationship to be statistically significant at 5% level (p=0.000, <0.05). Hence, it is evident that all the independent variables could explain the changes in implementation of performance of state agencies in Kenya, on the basis of the correlation analysis. The findings of the study indicated that cost management, quality index management, delivery management and asset utilization management have a positive relationship with performance of state agencies in Kenya

Unique contribution to theory, practice and policy: Finally, the study recommended that public institutions should embrace procurement key performance indicators so as to improve performance and further researches should to be carried out in other public institutions to find out if the same results can be obtained

Downloads

Download data is not yet available.

Author Biographies

Bernard Mong’eri Ndemo, Jomo Kenyatta University of Agriculture and Technology

Post Graduate Student: Department of Procurement and Logistics,

Jomo Kenyatta University of Agriculture and Technology

Dr. John Achuora, Jomo Kenyatta University of Agriculture and Technology

Lecturer, Department of Procurement and Logistics

Jomo Kenyatta University of Agriculture and Technology

Dr. John Achuora, Jomo Kenyatta University of Agriculture and Technology

Lecturer, Department of Procurement and Logistics

Jomo Kenyatta University of Agriculture and Technology

References

Callendar, G., & Mathews, D. (2016). Government Purchasing: An Evolving Profession. Journal of Public Budgeting, Accounting & Financial Management, 12(2), 272-290.

Comesa Public Procurement Reform Project (2014). .African Regional workshop on harmonization alignment and results, retrieved from http:/www.worldbankorg/ on 14th June 2018.

George, A., Andrew, K., & Christopher, C. (2018). “4Es and 4 Poles of Sustainability: Redifining sustainability in the build environment”. Structural Survey, 10(5), 23-42.

George, D., & Mallery, P. (2013). SPSS for Windows step by step: A simple guide Longman Publishers, Nairobi, Kenya Debt structure [Electronic Version].

Gitari, M. & Kabare, K. (2014). Factors affecting access to procurement opportunities in public secondary schools by small and medium enterprises in Kenya: A survey of Limuru Sub-county. International Journal of Current Business and Social Sciences.

Gold, S., Seuring, S., & Beske, P. (2016). "Sustainable supply chain management and interorganizational resources: a literature review", Corporate Social Responsibility and Environmental Management, 17(4), 230-245.

Government of Kenya (2015). Public Procurement and Disposal Act. Nairobi: Government Printer.

Government of Kenya (2015). Status of the economy, Government press, Nairobi.

Hatry, H. (2016). Performance Measurement: Getting Results. 2nd ed. Washington, DC: The Urban Institute.

Herbert, R. (2015). Procurement strategies development, 2nd edition. New York: Pitman.

Isaac, S., & Michael, W. (2015). Handbook in Research and Evaluation for Education and the Behavioral Sciences. Macdonald and Evans, Ohio, U.S.A.

Jay, G.W., & Alec, F.L. (2016). Strategy Implementation. Westport, CT: Praeger.

Joiner, T. (2018). Procurement management and performance: the role of organization support and co-worker support. International journal of reliability management, 24(6), 617-627.

Kennedy, H., & Brian, F. (2014). Purchasing and Supply Chain Management, Seven Edition, Prentice Hall.

Kenneth, M. Lysons, S., & Farrington, T. (2018). Purchasing and Supply Chain Management: Seventh Edition, Person Education Limited.

Kingori, N. (2018). Factors Affecting Procurement Manual Adoption by Secondary Schools in Kenya, Msc research project Jomo Kenyatta University of Science and Technology.

Kinyanjui, P. (2016). Procurement Challenges in Kenya. Journal of Procurement, 13(1), 65-85.

Kioko, N.J. (2014). Factors Affecting Efficiency of the Procurement Function at the Public Institutions in Kenya. International Journal of Business and Law Research.

Kipchilat, G.T. (2016). “An Evaluation of the Impact of the Public Procurement Regulations on Procurement in Kenyan Public Universities.” Unpublished MBA Project Egerton University, Nakuru, Kenya.

KIPPRA (2016). The Demographic Governance Support Programme (DGSP). Nairobi: KIPPRA.

KIPPRA (2016). The Demographic Governance Support Program (DGSP). Nairobi: KIPPRA.

Kirk, R. (2015). Performance-based logistics contracts: A basic overview. CNA Corporation.

Kirungu, K.H. (2018). An Investigation of Possible Constraints to Efficient Management of the Supply Chain in Government Hospitals. A Case Study for Kenyatta National Hospital. Mombasa: Government Training Institute.

KNBS (2018). National Service Delivery Survey Report. Nairobi: Kenya National Bureau of Statistics.

Kombo, D., & Tromp, D. (2013). Proposal and Thesis Writing, an introduction. Nairobi: Pauline Publications Africa.

Kotabe, M., & Murray, J.Y. (2016). ‘‘Outsourcing, performance, and the role of e-commerce: a dynamic perspective’’, Industrial Journal of Marketing and Management, 3(7), 37-45.

Kothari, C.R. (2014). Research Methodology; Methods & Techniques (2nd ed.). New Delhi; New Age International Press Limited.

Lewis, M. A., & Roehrich, J. K. (2013). “Contracts, relationships and integration: Towards a model of the procurement of complex performance”, International Journal of Procurement Management, 2(2), 125-142.

Lin, J., & Lee, P. (2017). Performance management in public organizations; A complexity perspective. International public management review, 1(2), 13-28.

Lysons, K., & Farrington, B. (2018). Purchasing and Supply chain Management; (7th Ed) London: Prentice Hall.

Mahmood, S.A. (2016). Public Procurement and Corruption in Bangladesh. Confronting the Challenges and Opportunities. Journal of Public Administration and Policy Research, 2(6), 103-111.

Makau, J.K. (2018). “Challenges facing adoption of electronic procurement in public sector in Kenya: A case of Nairobi Water and Sewerage Company”. International Journal of Social Sciences and Entrepreneurship, 1(11), 267-286.

Malik, A., & Yong, J. (2016). TQM practices & organizational performance: Evidence from Tanzania SMEs, International Journal of Engineering & Technology, 10(4), 26-31.

Mann, S., & Zhang, T. (2016). Some cultural/geographical styles in strategies and costs (P.R. China versus Australia), International Journal of Production Economics, 4(1), 81-92.

Manyasi, J. M. (2018). Effect of strategic alignment as a source of performance at Uganda Revenue Authority. Unpublished Report. University of Makerere.

Muge, P. (2013). Procurement practices in public institutions in Kenya. Supply chain management journal, 1(2), 13-28.

Mugenda, O., & Mugenda, A. (2014). Research methods quantitative and qualitative approaches. Nairobi: Acts Press.

Mugenda, O., & Mugenda, A. (2014). Research methods quantitative and qualitative approaches. Nairobi: Acts Press.

Nderu, M. (2013). Influence of Survival Strategies on the Organizational Performance of Kenya Airways, International Journal of Social Sciences and Entrepreneurship, 1(2), 496-512.

Neuman, W.L. (2016). Social Research Methods: Qualitative and Quantitative Approaches (Fourth Edition ed.) Boston.

Ngechu, M. (2017). Understanding the Research Process and Methods. An Introduction to Research Methods. Acts press, Nairobi.

Nwabueze, U. (2017). An industry betrayed: the case of total quality management in manufacturing, International Journal of Human Resource and Research Publication, 13(6), 20-48.

Nyeko, P. K. (2013). Procurement Processes and Performance: Efficiency and Effectiveness of the Procurement Function.

Oakland, J. (2016). Best Procurement Management (2ed). Oxford, Great Britain: Butterworth-Heinemann.

Oso, Y., & Onen, D. (2016). A general Guide to Writing Research Proposal and Report. Kisumu: Options Printers and Publishers.

Owegi, F., & Aligula, E. (2018). Public sector procurement in Kenya: The need for a coherent policy framework. International Journal of Logistics and Supply Chain Management, 8(6), 40-48.

PPOA (2016). Assessing Procurement Systems in Kenya Report. Nairobi: Public Oversight Authority.

PPOA (2016). Assessment of the Procurement System in Kenya Report. A report by Public Procurement Oversight Authority, Nairobi.

Rambo, C.M. (2018). Procurement Reforms and Expenditure Management in Public Secondary Schools. Nairobi: DBA African Management Review Publishers.

Richard, P.J., Devinney, T.M., Yip, G.S., & Johnson, G. (2014). Measuring Organizational Performance: Towards Methodological Best Practice. Journal of Management. Sydney: Australian School of Business.

Robert, G. (2016). Transaction-Cost Economics: Past, Present, and Future? Scandinavian Journal of Economics, April 13, 2016.

Rudzki, R. A., & Trent, R. J. (2017). Next level supply management excellence: Your straight to the bottom line roadmap. Ft. Lauderdale, FL: J. Ross Pub.

Samuel, O.L. (2018). Procurement key performance indicators System of Uniliver Ghana Limited (Unpublished doctorate’s dissertation). St. Clement University, Turks and Caicos Island.

Sari, K. (2018). ” Inventory in Accuracy and Performance of Collaborative Supply Chain Practices”, Journal of Industrial Management and Data Systems, 2(4), 108-123.

Saunders, M. (2018). Research for business students (6 ed.). Financial Times Prentice Hall.

Downloads

Published

2020-10-24

How to Cite

Ndemo, B. M., Achuora, D. J., & Achuora, D. J. (2020). Influence of Procurement Key Performance Indicators on The Performance of State Agencies in Kenya. International Journal of Supply Chain and Logistics, 4(2), 80–103. https://doi.org/10.47941/ijscl.467

Issue

Section

Articles