CONTRACT MANAGEMENT PRACTICES AND PROCUREMENT PERFORMANCE OF PUBLIC HEALTH FACILITIES IN NAIROBI CITY COUNTY, KENYA
Abstract
Contract management practice is a vital aspect in any organization that intends to gain a competitive advantage and value for money. A firm’s procurement process is incomplete without an effective and efficient contract management practice. Customer dissatisfaction in majority of public organizations and particularly public hospitals in Nairobi County. The study was limited to examination of contract management practices on procurement performance of public health facilities in Nairobi City County, Kenya. The specific objectives were to examine effect of contract planning and contract awarding. The study was guided by the principal-agent theory and virtue ethics theory. The study targeted 84 procurement, 126 administration, 78 finance, 56 stores, and 40 logistics officers. Yamane 1967 formula was used to sample 196 staff. Data was collected using questionnaires. The pilot test was conducted on a total of 10% of the sample population (19 respondents). The study used content and construct validity. Cronbach's Alpha was used to measure internal consistency of the questionnaire. The researcher used SPSS version (V28) to analyse quantitative data collected from the study samples. Descriptive statistics included percentages, frequencies, and means while inferential statistics involved regression and correlation analysis. The validity and reliability of the research instrument were rigorously tested in this study. The study revealed that all variables had a significant positive impact on procurement performance: contract planning (B = 0.329, p = 0.000) and contract awarding (B = 0.388, p = 0.000). The findings conclude that effective contract management practices are critical in enhancing procurement performance, with contract awarding having the strongest influence. The study recommends that public health facilities adopt comprehensive planning tools and ensure merit-based contract awarding to improve procurement outcomes and enhance healthcare delivery. Further research is suggested to explore other factors influencing procurement performance, such as technological adoption and supplier management.
Key Words: Contract Management Practices Procurement Performance, Public Health Facilities, Contract Planning, Contract Awarding
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