SUPPLIER PRE-QUALIFICATION AND PERFORMANCE OF PETROLEUM COMPANIES IN NAIROBI CITY COUNTY, KENYA
Abstract
The general objective was to assess the influence of supplier pre-qualification on performance of petroleum companies in Nairobi city county, Kenya. The specific objectives were to determine influence of supplier identification, and supplier capacity on performance of petroleum companies in Nairobi city county, Kenya. The study was guided by Resource-Based View theory, and human capital theory. The researcher employed descriptive research design. The target population for the study were 105 procurement (35), supply chain (35), and finance (35) managers in the 35 Petroleum companies in Nairobi. This study adopted a census technique hence all 105 managers were sampled. This research used a questionnaire to collect primary data. The pilot test comprised of 10% of the sample size selected hence 10 procurement managers. The study used content and construct validity. To test reliability of the instrument, the researcher used Cronbach alpha. Descriptive statistics were used to analyze the data in frequency distributions percentages, and. Relationship between study variables was tested using regression. The regression equation shows that; a unit change in supplier identification would predict a unit increase in performance of petroleum companies in Nairobi city county by a factor of 0.317, a unit change in supplier capacity would cause a unit increase in a unit increase in firm performance by a factor of 0.354. The petroleum firms should carry out a through market research to identify and evaluate suitable suppliers. This should be through intensive scrutiny of documents submitted by the suppliers. They should also make efforts to contact the previous customers. The firms should invest in high technology that will enable then to detect procurement fraud and other malpractices in the procurement process. This will save the firms procurement function costs and also a good brand name for the firm. They should also improve on supplier delivery capacity assessment through regular visits to the suppliers to check on their production ability.
Key Words: Supplier pre-qualification, Petroleum companies, Supplier identification, Supplier capacityFull Text:
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