ETHICAL PROCUREMENT PRACTICES, LEAD-TIME VARIATION, AND ORGANIZATIONAL PERFORMANCE: EVIDENCE FROM KENYA MEDICAL SUPPLIES AUTHORITY (KEMSA)

Charles Salil - Department of management Science, School of Business and Economics, Kisii University, Kenya

Enock Musau - Department of management Science, School of Business and Economics, Kisii University, Kenya

Cornelious Kurere - Department of management Science, School of Business and Economics, Kisii University, Kenya

ABSTRACT

The Kenya Medical Supplies Authority (KEMSA) has faced persistent challenges in achieving optimal performance, partly due to unethical procurement practices and lead-time variations. This study investigates the influence of ethical procurement practices specifically transparency, confidentiality, and accountability on organizational performance at KEMSA. The research also examines how variations in lead time moderate the relationship between these ethical practices and performance. A sequential explanatory mixed-method design was employed, targeting 149 respondents from key departments within KEMSA. Data collection utilized structured questionnaires, followed by descriptive statistics, regression, and moderation analyses. The study found that transparency and confidentiality positively influence performance, with transparency (β=0.423, p=0.000) being the most significant predictor. Accountability showed a weaker, yet positive, relationship. The moderating role of lead-time variation was also confirmed, as significant changes in R-square values across regression models demonstrated its impact. The findings suggest that KEMSA could enhance performance by fostering greater transparency, confidentiality, and accountability, especially by mitigating the effects of lead-time variation. Future research should focus on exploring other ethical dimensions, such as fairness and declaration of interest, and their impact on procurement performance.

Full Length Research (PDF Format)