PROCUREMENT PRACTICES AND PERFORMANCE OF MANUFACTURING INDUSTRY IN NAIROBI COUNTY, KENYA

Alex Kyalo Mutuku, Dr. Anthony Osoro

Abstract


The general objective of this study was to effect of procurement practices on performance of the manufacturing industry in Nairobi County, Kenya. The specific objectives are; to determine effect of procurement process management, effect of supplier sourcing, on performance of manufacturing industry in Nairobi County, Kenya. The study was based on resource based view theory, grey theory, just in time theory, transaction cost theory. The study employed descriptive research design. The unit of analysis was 50 manufacturing firms in Nairobi County. The study targeted 500 senior procurement, production, marketing, finance and accounting staff. Stratified random sampling technique was used to sample 220 staff. Data was collected using questionnaires. A pilot was conducted with 22 staff.  The study used content and convergent validity. Cronbach’s Alpha Coefficient to test questionnaire reliability. Questionnaires were administered to them with the help of two trained research assistants. Data was analyzed using descriptive and inferential statistics with the help of SPSS Version 28. The descriptive statistics included frequency, percentage and mean while inferential statistics included regression and Pearson correlations. Data was presented in tables. The study concludes that procurement process management has a positive and significant influence on performance of manufacturing industry in Nairobi County, Kenya. In addition, the study concludes that supplier sourcing has a positive and significant influence on performance of manufacturing industry in Nairobi County, Kenya. Based on the findings, this study recommends that the management of manufacturing firms in Nairobi County should formulate and implement effective framework to ensure smooth procurement process. In addition, the management of manufacturing firms in Nairobi County should formulate and implement effective framework to ensure reliable supplier sourcing hence improving firm performance.

Keywords

Procurement practices, procurement process management, supplier sourcing

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References


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