INFLUENCE OF PROCUREMENT MANAGEMENT PRACTICES ON PERFORMANCE OF CONSTRUCTION FIRMS IN NAIROBI COUNTY, KENYA
Loise Kemunto Sindiga - Masters Student, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Samson Nyang’au Paul - Jomo Kenyatta University of Agriculture and Technology, Kenya
Lydia Kwamboka Mbura - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Misconducting the procurement process leads to wastage of resources and dismal developmental outcomes for the citizenry at large. In Kenya, construction firms encounter immense competition owing to globalisation, evolving market conditions and trends, changing business models, calls to reassess the costing models, price volatility and so forth. Therefore, this study aims to examine the role played by procurement management practices such as procurement planning, supplier relationships, outsourcing and inventory management in the performance of construction firms within the county of Nairobi. Anchored on Agency Theory, Stakeholder Theory, Legitimacy Theory, and Resource - based Theory, the study adopted a descriptive research design targeting senior managers, mid - level managers, and lower - level managers working at construction firms based in Nairobi County. The 4,142 enlisted operational construction companies in Nairobi County constituted the target population and through simple random sampling, the sample size established. Primary data was collected via a series of open and closed ended questions presented in a structured questionnaire. Drop –off/pick-up survey method was employed with the questionnaires being distributed by enumerators, the researcher too approached some respondents especially those in the same division. The data was entered into the latest version of SPSS for analysis. Biographical data such as gender, age bracket, and employee position and length of service in the organization were analysed using descriptive statistics while the relationship between procurement management practices and performance was evaluated through the application of Linear Regression. The study's discovery was that the performance of construction firms in Nairobi County was significantly and positively affected by procurement management practices. The study concluded that procurement planning had the greatest impact on the performance of construction firms in Kenya, with outsourcing and inventory management taking second and third place respectively. According to the study, the supplier relationship has been found to have the least influence on construction firms ' performance in Kenya. The study recommended that construction firms ' management enforce higher quality assurance standards throughout the entire procurement process, based on the research findings. Finally, that the study also recommended firms to reconsider contracting suppliers as a means of focusing on their core business.
