STRATEGIC PROCUREMENT MANAGEMENT PROCESSES ON PERFORMANCE OF PUBLIC INSTITUTIONS IN KENYA: A CASE OF NATIONAL TRANSPORT AND SAFETY AUTHORITY
STRATEGIC PROCUREMENT MANAGEMENT PROCESSES ON PERFORMANCE OF PUBLIC INSTITUTIONS IN KENYA: A CASE OF NATIONAL TRANSPORT AND SAFETY AUTHORITY
Veronica Mwihaki Giathi - Student, Master Of Business Administration St. Pauls University, Kenya
Robert Abayo - Lecturer, St. Pauls University, Kenya
John Muhoho - Lecturer, St. Pauls University, Kenya
ABSTRACT
Organisations both in the public and private sector domain have highly adopted strategic management with an aim to provide a blue print in the management of the entire firm. Excellence in procurement has increasingly become a vital component in the success of operations within companies. The main objective of this study was to assess the influence of strategic management of procurement processes on the organizational performance of public institutions in Kenya, with a focus on National Transport and Safety Authority. The specific objectives of the study are; To establish the influence of supplier management on the performance of organisations; determine the influence of technology utilization on the organizational performance, Investigate the organizational capacity influence on organization performance of NTSA. The study made use of a descriptive research design while employing stratified random technique to come up with 92 respondents from 923 NTSA employees making a 10% sample. Closed ended questionnaires were used to collect data while descriptive statistics were exploited to show the relationship between variables. The study made use linear regression and correlations to show the relationship between the independent and dependent variables. Among the study findings, correlation analysis revealed that there was a significant relationship between supplier management and organizational performance. There was a positive relationship between technology utilization and organizational performance, there was a positive relationship between organizational capacity and organizational performance. The study concludes that the existence of a pre-qualified list of suppliers who are reliable had the greatest effect on operational performance with a mean of 3.88. the study further concluded that organizational capacity had a distinct procurement function/department in place and that it’s structure supports the implementation of strategic procurement contributed to organizational performance. The study suggest that there is need for both top managers and other senior managers in firms such as NTSA to invest in research and development (R&D) with an aim of adopting the new technologies so as to keep pace with trends in the global arena and shifts in trajectory; further study is required focusing on other public institutions for generalizability and comparative analysis. Similar studies should also be conducted to focus on private institutions particularly Small and Medium sized organizations an area not much research has focused on.
