SUPPLY CHAIN MANAGEMENT PRACTICES AND PROCUREMENT PERFORMANCE OF ENERGY SECTOR IN KENYA

Edwin Waithanji Maina, Dr. Mirriam Thogori

Abstract


The primary objective was to assess the impact of supply chain management practices on the procurement performance within the Kenyan energy sector. The study was guided by specific objectives, including evaluating the influence of procurement planning on procurement performance and investigating the effect of supplier capability on procurement performance in the energy sector of Kenya. The research drew upon resource dependency theory and the resource-based view theory as theoretical frameworks. A cross-sectional research design was employed for this study. The key energy agencies operating in Kenya served as the units of analysis, while the unit of observation comprised 246 procurement officers stationed at these agencies. The sample size was determined using Slovin's formula, resulting in 152 respondents, who were selected through a stratified random sampling technique. Primary data collection was conducted through the distribution of questionnaires, selected as the data collection tool. A pilot study involving 15 respondents (10% of the total sample size) was conducted for questionnaire refinement. Quantitative data from the questionnaires underwent comprehensive analysis using both descriptive and inferential statistics, with the aid of the Statistical Package for Social Scientists (SPSS). The findings were presented through tables and figures. Qualitative data was subjected to content analysis and presented in a narrative format. This research intended to provide valuable insights into the relationship between supply chain management practices and procurement performance in Kenya's energy sector, offering a foundation for improved practices and, consequently, better procurement performance in this critical sector. The study found that effective procurement planning positively influences procurement performance in the energy sector of Kenya. Finally, the findings showed that procuring from capable suppliers positively impacts procurement performance, ensuring innovation adoption, meeting specific requirements, enhancing quality and reliability, and mitigating risks through supplier financial assessments and technical expertise considerations. The study thus recommends that the energy sector in Kenya should focus on improving procurement planning, and prioritizing capable suppliers to enhance procurement performance.

Key Words: Supply chain management practices, Procurement planning, Supplier capability, Procurement performance, Energy sector

Full Text:

PDF

References


Ahmed, M., & Kitheka, J. U. (2019). Factors influencing procurement performance in the public sector: A case study of the county government of Nairobi. International Journal of Advanced Research in Management and Social Sciences, 8(2), 156-173.

Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.

Carter, P. L., Monczka, R. M., & Giunipero, L. C. (2015). The Future of Purchasing and Supply Management: A Ten-Year Forecast. Journal of Supply Chain Management, 51(3), 66-83.

Cheng, Shih-Yu & Lin, Ying. (2017). How Supplier Capability Affects an Organizational Flexibility and Performance.

Chiti, A. L. (2021). Accessing The Effects Of Procurement Planning On The Performance Of An Organisation In The Public Sector-Case Of Mufumbwe Town Council (Doctoral dissertation, Cavendish University).

Cooper, D. R., & Schindler, P. S. (2008). Business Research Methods, 12th Edition (12th ed.). McGraw-Hill Education.

Dhlakuseni, S., Kanyepe, J., Tukuta, M., & Sifile, O. The Influence Of Supplier Capability On The Public Procurement And Disposal Of Public Assets Act [Chapter 22: 23] Performance In Zimbabwe ‘S Soes. International Journal Of Innovations In Engineering Research And Technology, 8(8)

DiMaggio, P. J., & Powell, W. W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. American Sociological Review, 48(2), 147-160.

Emerson, R. M., & Lewis, K. M. (2020). Managing Dependence: An Alternative Explanation of Resource Allocation in Organizations. American Journal of Sociology, 94(4), 666-692.

Gathima, J. I., & Njoroge, J. (2018). Effects Of E-Tendering on Organization Performance in Public Sector: A Case of Nairobi City County Government. Strategic Journal of Business & Change Management, 5(3).

Government of Kenya. (2019). National Energy Policy 2019. Retrieved from https://energy.go.ke/wp-content/uploads/2021/07/National_Energy_Policy_2019.pdf

Heugens, P. P., & Lander, M. W. (2009). Structure! Agency! (and Other Quarrels): A Meta-Analysis of Institutional Theories of Organization. Academy of Management Journal, 52(1), 61-85.

Higiro, J. (2021). Effect of Procurement Planning on Performance of Public Institutions in Rwanda: Case of Kicukiro District. The International Journal of Business Management and Technology, 5(6), 64-69

Kenya Power & Lighting Company. (2020). Power Projects. Retrieved from https://kplc.co.ke/category/power-projects/

Kiplel, M. C., & Keitany, P. (2018). Effect of procurement planning on suppliers performance in public institutions: a case of MOI University. European Journal of Logistics, Purchasing and Supply Chain Management, 6(2), 1-9

Kraaijenbrink, J., Spender, J. C., & Groen, A. J. (2010). The Resource-Based View: A Review and Assessment of Its Critiques. Journal of Management, 36(1), 349-372.

Kraatz, M. S. (1998). Learning by Association? Interorganizational Networks and Adaptation to Environmental Change. Academy of Management Journal, 41(6), 621-643.

Li, W., Zhang, Y., & Wang, L. (2021). Government Involvement and Nuclear Power Procurement Performance in China. Journal of Energy Policy, 36(2), 180-198.

Lin, Y., Hsu, Y., & Hung, R. (2019). Resource-Based View and Supply Chain Performance. Supply Chain Management: An International Journal, 24(2), 183-196.

Maheshwari, P., & Sohoni, A. (2021). Impact of Supplier Selection Criteria on Procurement Performance: A Study in the Oil and Gas Sector. International Journal of Production Economics, 239, 108101.

Masindano, L., Makokha, E. N., & Namusonge, G. (2018). Factors Affecting Public Procurement Performance in Transnzoia County Government. European Journal of Business and Management, 10(9), 70–74.

Matunga, D. A., Ngugi, P. K., & Odhiambo, R. (2021). Relationship Between Staff Competency and Implementation Level of Public Procurement Regulatory Framework in The Devolved Governments in Kenya. International Journal of Supply Chain Management, 6(1), 13-23.

Ministry of Energy. (2019). Energy Sector Recovery Strategy for Kenya. Retrieved from https://energy.go.ke/wp-content/uploads/2021/06/Energy-Sector-Recovery-Strategy-for-Kenya.pdf

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management (6th ed.). Cengage Learning.

Muema, F., & Muli, S. (2022). Influence Of Procurement Practices on Procurement Performance in Devolved Governments in Kenya. International Journal of Economics, Commerce and Management, X(4).

Mugenda, O.M., & Mugenda, A.G. (2010). Research Methods: Quantitative and Qualitative Approaches (Revised Ed). Nairobi: African Centre for Technology Studies (ACTS)

Muijs, D. (2022). Doing Quantitative Research in Education with IBM SPSS Statistics. Sage Publications Ltd.

Mutangili, C. S. (2021). Factors Influencing Procurement Performance in the Energy Sector: A Case of Selected Energy Companies in Kenya. International Journal of Business and Management Invention, 10(5), 19-32.

Nakhai, B., & Rezaei, J. (2021). A comprehensive procurement cost measurement model in the construction industry. Journal of Building Engineering, 44, 103587.

Nyamai, J., & Ismail, N. (2018). Role of Strategic Procurement Practices On Procurement Performance in State Corporations in Kenya. American Based Research Journal, 7(05).

Oenga, C. M., Oloko, M., Munyao, J. M., & Kiarie, J. K. (2022). Challenges in Implementing Public Procurement Laws: A Case of Selected Public Universities in Kenya. European Journal of Business and Management Research, 7(2), 41-52.

Ouma, B. E., Waema, T. M., & Oroko, V. K. (2018). E-Procurement and Procurement Performance: A Survey of Selected State Corporations in Kenya. International Journal of Innovation and Economic Development, 4(2), 6-18.

Pfeffer, J., & Salancik, G. R. (1978). The External Control of Organizations: A Resource Dependence Perspective. Harper & Row.

Presidential Taskforce. (2021). The Report of the Presidential Taskforce on the Review of Power Purchase Agreements (PPAs)

Public Procurement Asset and Disposal Act, 2015. Government of Kenya. Retrieved from http://www.treasury.go.ke/images/docs/acts/PPAD%20Act%20No.%2023%20of%202015.pdf).

Rahman, M. M., Hossain, M. M., Alam, M. N., & Paul, S. K. (2020). Identifying Critical Factors of Supplier Selection in Supply Chain Management: A Systematic Review and Meta-analysis Approach. Operations and Supply Chain Management: An International Journal, 13(4), 291-310.

Salim, A. S., & Kitheka, S. (2019). Effect of procurement planning on procurement performance of state corporations in Mombasa County, Kenya. The Strategic Journal of Business & Change Management, 6 (3), 816 – 833.

Sarkar, A., & Mohapatra, P. K. (2018). Evaluation of supplier capability and performance: A method for supply base reduction. Journal of Purchasing and supply management, 12(3), 148-163.

Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill-Building Approach (7th ed.). Wiley.

Smith, J.A. (2019) Qualitative Psychology: A Practical Guide to Research Methods. Sage, London.

The Auditor General. (2022). Report On the Kenya Power and Lighting Company PLC for the Year Ended 30th June, 2022

Wachiuri, E., W. (2020). Influence of Supplier Capacity on the Performance of State Corporations in Kenya. Journal of procurement & Supply Chain, 4(2), 12-20

World Bank. (2022). A Global Procurement Partnership for Sustainable Development: An International Stocktaking of Developments in Public Procurement.

Zawawi, D. S. S., & Lam, T. (2021). Product quality management in procurement performance: Insights from the Malaysian public sector. Benchmarking: An International Journal, 28(5), 1878-1900.

Zhang, W., & Wang, Y. (2020). Evaluating Supplier Financial Capability and Supply Chain Risk: Evidence from the Manufacturing Industry. Technological Forecasting and Social Change, 151, 119792.


Refbacks

  • There are currently no refbacks.