Influence of Procurement Capabilities on Firm Performance of Manufacturing Entities in Kenya (original) (raw)

2017, The International Journal of Academic Research in Business and Social Sciences

Procurement is a dynamic function that is crucial to the productivity and general performance of a manufacturing entity. The purpose of manufacturing is to produce value in form of products and services, through different processes and activities, which are performed by a network of organizations both upstream and downstream. These processes form an integrated supply chain where raw materials are converted into final finished products for the end consumer. In order to realize successful performance, the management of manufacturing entities must have a holistic comprehension of procurement and implement it accordingly. Therefore, the objective of this study was to investigate the influence of procurement capabilities on firm performance of manufacturing entities in Kenya. The population of interest for this study was manufacturing firms within Nairobi and its environs. A sample of 69 manufacturing entities was randomly selected to participate in this study. Data was collected using q...

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Influence of Procurement Quality Management on Performance of Manufacturing Firms in Kenya

International Journal of Supply Chain and Logistics

Purpose: The overall objective of this study was to examine the influence of procurement quality management on performance of manufacturing firms in Kenya, with an aim of making recommendations on proper use of procurement quality management in the manufacturing sector. The study aimed to establish how process management, continuous improvement, supplier management and customer focus influence performance of manufacturing firms Methodology: This research study adopted a descriptive research design. The researcher preferred this method because it allowed an in-depth study of the subject. To gather data, structured questionnaire was used to collect data. The study population was the manufacturing firms in Nairobi; the respondents were the designated heads of procurement of these firms. 200 heads of procurement were selected using stratified random sampling. Once collected, data was analyzed using descriptive and inferential statistics.Quantitative data was analyzed using multiple reg...

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Influence of Supplier Development Practices on Procurement Performance in Food and Beverage Manufacturing Firms in Nakuru East Sub-County, Kenya

2019

Though, many food and beverage manufacturing firms in Kenya are experiencing growth in several areas, the increase in demand for their products and services has necessitated an increase in their manufacturing capacity which has led to increased operational challenges. The purpose of this study therefore was to establish the influence of supplier development practises on procurement performance of food and beverage manufacturing firms in Nakuru East Sub-County, Kenya. The study specifically sought to establish the influence of supplier training, supplier appraisal, supplier partnership and supplier financial support on procurement performance. The study was anchored on two theories, namely: Human capital Theory and Social Exchange Theory. A survey research design was employed since it permits gathering of data from the respondents in natural settings. The study targeted all procurement staff and accountants in the food and beverage manufacturing firms in Nakuru East Sub-county since ...

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Effects of Procurement Practices on the Performance of Commercial State Owned Enterprises in Nairobi County

Procurement practices are a set of activities undertaken by an organization to promote effective management of its supply chain (Sollish & Semanik, 2012).The main purpose of the study was to establish the effect of procurement practices on performance of commercial state owned enterprises in Nairobi County. The specific objectives of the study were to establish the effect of buyer-supplier relationships on performance of commercial state owned enterprises in Nairobi County, to establish the effect of supplier selection procedures on performance of commercial state owned enterprises in Nairobi County, to determine how organizational capacity affect performance of commercial state owned enterprises in Nairobi County and to ascertain the effect of procurement process management on performance of commercial state owned enterprises in Nairobi County. The study adopted a descriptive survey design. Primary data was collected using questionnaires targeting managers in Finance, Procurement, Production and Sales and Marketing departments in each enterprise. The study achieved 80% response rate since ninety six (96) out of the 120 questionnaires administered were filled and returned. The population of the study comprised of thirty eight (38) commercial state owned enterprises operating in Nairobi county. A random sample of thirty (30) enterprises representing 78.95% was selected.

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Buyer - Supplier Relationships Management Strategies and the Link with Procurement Performance of Large Scale Manufacturing Firms: Perspectives from Kenya

2018

The main aim of this study is to establish buyer-supplier relationships management strategies and procurement performance of large scale manufacturing firm in Kenya. The study was guided by specific objectives that included; to establish the buyer - supplier relationships management strategies commonly used by large scale manufacturing firm and to determine the relationship between buyer - supplier relationships management and procurement performance of large scale manufacturing firm. The study used cross-sectional survey research design. The population of interest in this study consisted of large manufacturing companies that are members of KAM (Kenya association of manufactures) in Nairobi. The population of this study was 1500 firms. The 10% of the target population of 1500 respondents made a sample size of 150 manufacturing firms. The Â study Â used both primary and secondary data Â which Â was Â largely Â quantitative Â and Â descriptive Â in nature. Mean and standard deviations...

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Strategic Procurement Practices and Firm Performance; A Case of Selected Logistics Firms in Nairobi

Abstract This empirical study examines the relationship between strategic procurement practices and firm performance among logistics firms in Nairobi, Kenya. Using a mixed-methods approach, quantitative surveys and qualitative interviews were conducted to gather data from selected logistics firms. Results indicate that strategic procurement practices significantly impact firm performance through improved operational efficiency, cost savings, and supplier relationship management.

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Role of Supplier Management on Procurement Performance in Manufacturing Sector in Kenya: A Case of East African Breweries, Kenya

Competitive forces in today's business world are putting firms under pressure to improve quality, delivery performance, and responsiveness while simultaneously reducing cost, which for many companies have resulted in increased outsourcing of activities. Consequently a greater dependency on supplier's performance in terms of quality and delivery service has evolved. One important aspect of supply chain management is supplier management which is organizing the optimal flow of high-quality, value-for-money materials or components to manufacturing companies from a suitable set of innovative suppliers. This study therefore was aimed at evaluating the role of supplier management on procurement performance in manufacturing companies a case of East African breweries. The specific objectives covered supplier integration, supplier quality management, supplier collaboration and supplier training. Theories relevant to the study include: deeming's theory, network governance theory and social capital theory which all shows how the variables link up with the mentioned theories. Study variables were discussed under the conceptual framework there after operationalized. The study adopted a descriptive design with the population being the employees of East African breweries and their suppliers. Pilot test was also carried done on 5 employees (1.25%) before the actual data was collected to ensure validity and reliability of the research instruments. Data was edited, coded and analysed by use of statistical package for social sciences (SPSS version 21) and presented through tables and graphs. The study findings indicated that 81% of change in procurement performance at EABL can be explained by four variables namely buyer supplier integration, Supplier quality management, Supplier collaboration, and Supplier Training. Supplier performance management is key to procurement performance as suppliers are integrated into organizations activities. EABL has a strong collaborative relationship with its suppliers and undertakes measures to train them. This has improved procurement performance to great extent (94.6%).However supplier integration and to be specific shared technology has not properly been achieved. EABL should focus more on integration and to maintain or improve on supplier collaboration and supplier training.

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Effects of Supplier Development on Procurement Performance of Kenya Ports Authority

There are different destinations which purchasing associations try to achieve in their provider improvement undertaking. These may incorporate; improving provider execution, decreasing item costs, lessening lead-times, settling genuine quality issues, growing new courses to supply, growing new item in the market. Before attempted provider improvement on any provider, the acquiring experts in charge of the task must choose the perfect provider for advancement dependent on their present limit contrasted with perfect capacity, their collaboration with purchasing association, item or administration provided nature and extent of improvement required. The investigation tries to analyze the impact of provider advancement on obtainment execution of Kenya Ports Authority. The study was guided by both general and explicit destinations. The particular targets are to inspect the impact of provider organization on obtainment execution of Kenya Ports Authority; to decide the impact of provider financing on acquisition execution of Kenya Ports Authority and to decide the impact of provider preparing on acquirement execution of Kenya Ports Authority. Also, to look at the impact of provider assessment on obtainment execution of Kenya Ports Authority. This reinforce the calculated system the examination utilized hypotheses such as network theory of supply chain management, social learning theory and resource-based view theory. The examination targets 1238 staff of Kenya Ports Authority in acquirement and client offices and the example size was 302. The study results revealed that supplier partnership was critical for the enhancement of procurement performance of Kenya Ports Authority. On supplier financing the study established that finances played a key role in securing materials and services for supply to Kenya ports Authority. On supplier training and auditing the study established that training enabled suppliers to be aware of tendering processes and supplier auditing helped to vet out ghost or briefcase suppliers from doing legitimate business with Kenya Ports Authority. The study concluded that supplier partnership and supplier training have a significant effect on procurement performance and that supplier financing and supplier audit have no significant effect on procurement performance at Kenya Ports Authority. The study recommended that That Kenya Ports Authority should enter into procurement strategic partnerships with suppliers; That Kenya Ports Authority should carry out a needs assessment on what do suppliers want; That Kenya Ports Authority should carry out training programmes for suppliers and even finance staff to further their studies in procurement in local universities; That Kenya Ports Authority should open the scope for auditing of suppliers so as to bring in as many suppliers as possible.

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