PROCUREMENT TRANSFORMATION PROCESS AND PERFORMANCE OF LARGE MANUFACTURING FIRMS IN NAIROBI COUNTY KENYA

Eve Amondi Otieno, Dr. Thomas Mose

Abstract


The general objective of the study was to establish the influence of procurement transformation process on performance of large manufacturing firms in Nairobi County Kenya. Specifically, the study sought to determine the influence of technological transformation on performance of large manufacturing firms in Nairobi County Kenya and to establish the influence of process optimization on performance of large manufacturing firms in Nairobi County Kenya. The study was anchored on Unified Theory of Acceptance and Use of Technology and systems theory. This study used descriptive research design. The target population for this study was the large manufacturing companies in Nairobi, Kenya. As of December (2020), there were 1012 large manufacturing companies in Nairobi (KAM, 2020). Specifically, the study targeted the heads of procurement in these firms. The study’s sample size was reached at using Krejcie and Morgan sample size determination formula. Using the formula, the sample size for the study was 278 respondents. This research used a questionnaire to collect primary data. The study also conducted pilot test to test the validity and the reliability of the data collection instrument. The data collection instrument generated both qualitative and quantitative data. The study used both descriptive and inferential statistics for data analysis with the aid of Statistical Package for Social Sciences (SPSS version 25). Descriptive statistics such as mean, standard deviation, frequency and percentages were used in this study. In relation to inferential statistics, the study used correlation analysis. This was used to establish the relationship between the independent and the dependent variables. Data was then presented in a tables, bar charts and pie charts. The study concludes that technological transformation has a positive and significant effect on performance of large manufacturing firms in Nairobi County Kenya. The study also concludes that process optimization has a positive and significant effect on performance of large manufacturing firms in Nairobi County Kenya. From the findings, this study recommends that the management of manufacturing firms should embrace technologies such as Internet of Things (IoT), Artificial Intelligence (AI), robotics, and advanced data analytics to optimize manufacturing processes, improve efficiency, and enhance decision-making capabilities.

Key Words: Procurement Transformation Process, Technological Transformation, Process Optimization, Performance, Large Manufacturing Firms 


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