Role of Strategic Procurement Practices On Procurement Performance in State Corporations in Kenya
Author(s)
Jackson Kimanthi Nyamai , Dr. Noor Ismail ,
Download Full PDF Pages: 12-22 | Views: 1388 | Downloads: 232 | DOI: 10.5281/zenodo.3455928
Abstract
The purpose of this paper was to investigate the effect of strategic procurement on the performance of geothermal development corporation. The researcher collected both primary and secondary data during the researcher. Primary data was collected using a questionnaire covering the strategic role of procurement in organizational performance. Quantitative data was analyzed by employing descriptive statistics and inferential analysis using statistical package for social science (SPSS) version 24. The findings have shown that cost Management on strategic procurement has a positive and significant effect on Procurement Performance, β1 = 0.550, p < 0.000. Furthermore, Supplier Relations do not have a significant effect Procurement Performance, β2 = 0.030, p = 0.656. Further focus on cost management strategies such as purchasing at a more centralized divisional level, cost analysis prior to approving purchases, contract reviews, supply chain mapping, and adequate human resource can go a long way in further improving procurement practices in the company. There is the specific focus that needs to be placed on cost reduction and how the competency of the suppliers can be further improved through training and resource provision that is critical to ensuring effective and efficient procurement processes
Keywords
Supplier Relations, Strategic Procurement, Performance, Procurement, Cost Management
References
i. Arye Bebchuk, Lucian & Cohen, Alma & Ferrell, Allen. (2004). What Matters in Corporate Governance?. Review of Financial Studies. 22. 783-827. 10.2139/ssrn.593423.
ii. Birch, D. (2001) Made for each other? Supply Management , Feb 15, p.42-43.
iii. Bowen, M., Morara, M., & Mureithi, S. (2005) Management of business challenges among small and micro enterprises in Nairobi-Kenya, KCA Journal of Business Management, Vol.2 (1)
iv. Burt, D., Doyle, M., 2003. The American Keiretsu: A Strategic Weapon for Global Competitiveness, Irwin
v. Carr, A.S., &Smeltzer, L.R. (2007). The relationship between information technology use and buyer-supplier relationships: an exploratory analysis of the buying firm's perspective. IEEE Transactions on Engineering Management, 49(3), 293-304.
vi. Cremers, M., V. Nair, and C. Wei, 2004, The congruence of shareholder and bondholder governance, NYU Law and Economics Research Paper, Vol. 04-007 (New York University, New York)
vii. Ellram, L. and Carr, G. (2004), “Factors that drive purchasing and supply management’s use of information technology”, IEEE Transactions on Engineering Management, Vol. 49 No. 3, pp. 269-81.
viii. Freeman RE, Wicks AC, Parmar B. Stakeholder theory and “The corporate objective revisited.” Organ Sci. 2004;15(3):364–9. doi: 10.1287/orsc.1040.0066.
ix. Freeman, R. B. (1984), “The New immigration and the New US economy”, Testimony at Hearings on "Immigration: the economic impact", United States Senate, Committee on the Judiciary, April 25.
x. Giunipero, L.C. and Sawchuk, C. (2000) E-Purchasing Plus: Changing the Way Corporations Buy, Goshen, NY: JGC Enterprises
xi. Gupta, M., Palmer, R. J., & Sprenger, C. (2007). The progress of purchasing cards in North America: Current data and a historical perspective. Cost Management, 21(1), 22-28
xii. Heide, 1.B. and John, G 2009, "The Role of Dependence Balancing in Safeguarding Transaction-Specific Assets in Conventional Channels", Journal of Marketing, vol. 52, no.January, pp.20-35.
xiii. Johnston, R. (2005). The determinants of service quality: Satisfiers and dissatisfiers. International Journal of Service Industry Management, 6(5), 53-71.
xiv. Kaufmann, L., & Carter, C. (2004). Deciding on the mode of negotiation: to auction or not to auction electronically. Journal of Supply Chain Management, 40(2), 15-26
xv. Krause, D.R., Handfield, R.B. & Tyler, B.B. (2006),“The relationships between supplier development, commitment, social capital accumulation and performance improvement”, Journal of Operations Management, Vol. 25 No. 2, pp. 528-45
xvi. Marshall, D., & Lamming, R. (2007). “The Impact of Strategic Purchasing the Insider View.” Proceedings of 6th Annual IPSERA Conference (PpW14.1-W14.12), Naples, Italy
xvii. McDonald, Denys & G. Puxty, Anthony. (1979). An inducement-contribution approach to corporate financial reporting. Accounting, Organizations and Society. 4. 53-65. 10.1016/0361-3682(79)90007-2.
xviii. Min, H. and Galle, W. (2009), “Electronic commerce-based purchasing: a survey on the perceptual differences between large and small organizations”, International Journal of Logistics: Research and Applications, Vol. 4 No. 1, pp. 79-95.
xix. Monczka Robert M. , Trent Robert J. , (1991) "Evolving Sourcing Strategies for the 1990s", International Journal of Physical Distribution & Logistics Management, Vol. 21 Issue: 5, pp.4-12, https://doi.org/10.1108/EUM0000000000383
xx. Moorman, Christine & Zaltman, Gerald & Deshpande, Rohit. (1992). Relationships Between Providers and Users of Market Research: The Dynamics of Trust Within and Between Organizations. Journal of marketing research. 29. 314-328. 10.2307/3172742.
xxi. Nunnally, J. C. (1978). Psychometric theory (2nd ed.). New York: McGraw-Hill.
xxii Osmonbekov, T; Bello, D.C., Gilliland, D.I., 2002. Adoption of electronic commerce tools in business procurement: enhancing buying center structure and process. Journal of Business and Industrial Marketing. Vol 17(2), pp 151-166
xxiii. Porter, M. (2000). The competitive advantage of nations. New York: Free Press
xxiv. Presutti, W. (2003). Supply management and e-procurement: creating value added in the supply chain.Industrial Marketing Management, 32(3), 219-27.
xxv. Rotchanakitumnuai, S., & Speece, M. (2009). Modeling electronic service acceptance of an e-securities trading system. Industrial Management & Data Systems, 109(8), 1069-84
xxvi. Sanda, A.U, Mikailu, A.S and Garba, T (2005): ―Corporate governance mechanisms and firm financial performance in Nigeria‖, AERC Research Paper 149, Nairobi
xxvii. Simatupang, T. M., & Sridharan, R. (2005). An integrative framework for supply chain collaboration. International Journal of Logistics Management, 16(2), 257-274
xxviii. Simatupang, T.M. and Sridharan, R. (2003), “The collaboration index: a measure for supply chain collaboration”, submitted for publication
xxix. Smart, A., & Harrison, A. (2003). Online reverse auctions and their role in buyer-supplier relationships. Journal of Purchasing & Supply Management, 9(5/6), 257-69.
xxx. Smeltzer, L., Carr, A. (2003). Electronic reverse auctions: promises, risks, and conditions for success. Industrial Marketing Management, 32(6), 481-8.
xxxi. Steele, P. and Court B. (2006).Profitable Purchasing Strategies: A Manager‟s Guide for Improving Organisational Competitiveness through the Skills Purchasing, Mc-Graw Hill, London, UK
xxxii. Tabachnick, B. G., & Fidell, L. S. (2007). Using Multivariate Statistics (5th ed.). New York Allyn and Bacon.
xxxiii. Togar M. Simatupang, R. Sridharan, (2002) "The Collaborative Supply Chain", The International Journal of Logistics Management, Vol. 13 Issue: 1, pp.15-30, https://doi.org/10.1108/0957409021080
Cite this Article: