GLOBAL PROCUREMENT PRACTICES AND PERFORMANCE OF TEXTILE COMPANIES IN KIAMBU COUNTY, KENYA

Samson Okumu Makokha, Dr. Charles Ndeto

Abstract


This study sought to assess the effect of global procurement practices on performance of textile companies in Kiambu County, Kenya. Specifically, the study sought to determine effect of supplier sourcing on performance of textile companies in Kiambu County, Kenya and to assess effect of logistics management on performance of textile companies in Kiambu County, Kenya. This study was guided by Grey Theory and Transaction Cost Theory. The study adopted a descriptive research design. The research focused on listed medium and large-scale textile manufacturing companies in Kiambu County, Kenya. There are 88 listed textile companies in Kiambu County, Kenya which are registered members of the Kenya Association of Manufacturers (KAM) as of 20th January 2023 (KAM, 2024). The unit of observation was 603 management employees working in the textile companies in Kiambu County, Kenya. The study’s sample size was reached at using Krejcie and Morgan sample size determination formula (Russell, 2019). Using the formula, 235 respondents were chosen with the help of stratified random sampling technique. This study used questionnaire to collect data relevant to this study. Quantitative data collected was analysed using descriptive statistical techniques which are frequencies, mean, standard deviation. Inferential statistics which include Pearson correlation and the Regression Analysis Model was used to test the relationship between study variables. The significance of the model was tested at 5% level of significance. Data was analysed using Statistical Package for Social Sciences (SPSS) software. The study results were presented through use of tables and figures. The study concludes that supplier sourcing has a positive and significant effect on performance of textile companies in Kiambu County, Kenya. The study also concludes that logistics management has a positive and significant effect on performance of textile companies in Kiambu County, Kenya. Based on the findings, the study recommends that the management of textile companies should adopt a structured procurement strategy that emphasizes transparency, accountability, and strategic sourcing. In addition, the study recommends that the management of textile companies should diversify and decentralize the supplier base.

Key Words: Global Procurement Practices, Supplier Sourcing. Logistics Management, Performance of Textile Companies


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