PROCUREMENT TRANSFORMATION PROCESS AND PERFORMANCE OF FOOD AND BEVERAGE INDUSTRY IN NAIROBI CITY COUNTY, KENYA

Hellen Meremo Gati, Dr. Paul Machoka

Abstract


Despite the importance of food manufacturing industry in Kenya, it has been experiencing a lot of turbulence in the recent past including a drop in the GDP, an increasing imbalance of trade and the exiting of large multinationals. This study therefore sought to establish the influence of procurement transformation process on performance of food and beverage industry in Nairobi City County Kenya. Specifically, the study sought to assess the influence of procurement database on performance of food and beverage industry in Nairobi City County Kenya and to determine the influence of technological transformation on performance of food and beverage industry in Nairobi City County Kenya. The study used descriptive survey design. The target population for this study was medium Food and beverage manufacturing companies in Nairobi City County. The manufacturing firms were the unit of analysis while the top manager was the unit of observation. Therefore, 91 top managers in the 91 manufacturing companies were targeted. This study adopted census by focusing on all 91 top managers in the 91 manufacturing companies. Data was collected using a self-administered semi-structured questionnaire. Qualitative reports were analyzed in content analysis and presented in form of essays. Descriptive statistical analysis included frequency, percentages, mean and standard deviation and was used to analyze quantitative data. SPSS version 25 was used for analysis. Inferential statistical analysis used was multiple regression and correlation analysis and tested the relationship between the study variables. The findings were displayed in tables and figures. The study concludes that procurement database has a positive and significant effect on performance of food and beverage industry in Nairobi City County Kenya. In addition, the study concludes that technological transformation has a positive and significant effect on performance of food and beverage industry in Nairobi City County Kenya. Based on the findings, this study recommends that the management of food and beverage firms should ensure adoption and implementation of websites, internet and blockchain. In addition, the management of food and beverage firms should ensure adoption and implementation of that on-job training, workshops/seminars and off job training.

Key Words: Procurement transformation process, Procurement database, Technological transformation and Performance of food and beverage industry

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