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