SUPPLIER SOURCING AND PERFORMANCE OF PUBLIC LEVEL 5 HOSPITALS IN NAIROBI CITY COUNTY, KENYA

Agneta Kalekye Muuki, Dr. Duncan Ndung’u Nderui

Abstract


The healthcare system in Kenya continues to grapple with significant challenges related to procurement and supply chain management, which have far-reaching consequences for patient care, financial sustainability, and overall hospital performance. The general objective of the study was to evaluate the relationship between Supplier sourcing and performance of Public Level 5 Hospitals in Nairobi City County, Kenya. Specifically, the study sought to evaluate the relationship between material acquisition and the performance of Public Level 5 Hospitals in Nairobi City County, Kenya and to identify the relationship between contract management practices and the performance of Public Level 5 Hospitals in Nairobi City County, Kenya. This study was anchored on: Supply Chain Management (SCM) Theory, and Principal-Agent Theory. For this study, descriptive research design was utilized. The unit of analysis was the 5 public level 5 hospitals in Nairobi City County while the unit of observation was management employees of procurement, supply chain management, finance, administration, and clinical services working with the 4 public level 5 hospitals. The total population was therefore 150 respondents. The study’s sample size was reached at using Krejcie and Morgan sample size determination formula. The 108 respondents were chosen with the help of stratified random sampling technique Primary data was obtained using structured questionnaire. Seventeen respondents from target population were used to pilot the questionnaire. Data collected was analyzed using SPSS version 28. Descriptive statistics such as frequency, percentages, means, and standard deviation was used to summarize findings the research variables. Pearson R correlation was used to measure strength and the direction of linear relationship between variables. The study results were presented through use of tables and figures. Regression analysis revealed that variables significantly contribute to hospital performance, with contract management having the highest impact (β = 0.321, p = 0.000), followed by material acquisition (β = 0.311, p = 0.000). The study concludes that Robust contract management, strategic material acquisition significantly enhance hospital operations, reduce risks, and improve overall service delivery. To improve performance, Public Level 5 Hospitals should invest in enhancing their contract management practices by implementing digital management systems and standardized oversight protocols. Hospitals should also adopt advanced supply chain technologies to streamline material acquisition to ensure quality and reliability.

Key Words: Supplier sourcing, Material Acquisition, Contract Management Practices, Performance, Public Level 5 Hospitals 


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References


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