INFLUENCE OF STRATEGIC PROCUREMENT MANAGEMENT PRACTICES ON PROCUREMENT PERFORMANCE OF TIER ONE COMMERCIAL BANKS IN KENYA

Janet Kamau, Dr. Miriam Thogori

Abstract


This study sought to examine the influence of strategic procurement management practices on the procurement performance of tier one banks in Kenya. The specific objectives were to; determine the impact of supplier relationship management on procurement management practices among tier-one commercial banks in Kenya, and to examine the effect of strategic sourcing on procurement performance among tier-one commercial banks in Kenya. The theories guiding the study included Agency theory, and contingency theory. The study adopted a descriptive research design. The study was based on tier one commercial banks in Kenya. The target population of this study comprised of procurement staff, warehouse staff, finance staff, ICT staff, administration staff, branch staff and suppliers for the tier one commercial banks in Kenya. The overall accessible population was 175 respondents from the tier one commercial banks in Kenya. Slovin’s formula was used to calculate the sample size which gave a total of 122 respondents.  Questionnaires were used to collect data. The semi structured questionnaires were used since they are economical and cheap to administer. Pretesting of the research instrument was conducted at Stanbic Bank. The data collected was cleaned, classified and coded to give room for analysis. Descriptive statistics and inferential statistics were used to analyse data. SPSS (Version 24.0) helped to analyse data. Data was presented using tables. The findings also benefit future researchers in the line of strategic procurement management practices. The study found that supplier sourcing has a positive and significant effect on procurement performance among tier-one commercial banks in Kenya. Supplier selection was key to procurement process and represents a major opportunity for an organization to reduce costs, increase effectiveness and enhance customer satisfaction.

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[1]Kamau, J., & Thogori, M., (2023). Influence Of Strategic Procurement Management Practices on Procurement Performance of Tier One Commercial Banks in Kenya. International Journal of Social Science Management and Entrepreneurship, 7(2023), 236-248

 


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