Procurement Planning Practices and Performance of Commercial State Corporations in Nairobi City County, Kenya
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Date
2023-10
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Strategi Journals
Abstract
This study investigated the effect of procurement planning on performance of commercial state corporations
in Nairobi City County, Kenya. The study variables were anchored on Institutional Theory, Resource Based View
Theory, Agency Theory and Partnership Theory. The study utilised descriptive and explanatory research design.
The target population consisted of five (5) commercial state corporations were the respondents were selected
from four core department in each of the five state corporations. The total respondents were 153, where a
census was used. Cronbach Alpha score was used to test reliability where all construct had a score greater than
a threshold of 0.7. Data was analysed using quantitative and qualitative methods. Data was presented in tables
and charts. The study found that procurement need identification had significant and positive effect on
organizational performances of commercial state corporations in Nairobi City County. The regression results
revealed statistically significant positive linear relationship between procurement need specification and
performance of commercial state corporations. The study concluded that there was positive correlation
between budget cost & estimates and organizational performance. The regression results revealed statistically
insignificant linear relationship between procurement methods and performance of commercial state
corporations in Nairobi City County, Kenya. The study recommended that State Corporations in Kenya need to
implement a Procurement Process any time the public entity want to buy items from external suppliers. By
using this Procurement Management Process, State Corporations ensure that the items provided meet
Organisation needs need. It also helps State Corporations manage the supplier relationship, ensuring that any
issues are resolved quickly. By implementing a Procurement Process, State Corporations ensure get the
maximum value from your supplier relationship.
Key Words: Procurement, Need Identification, Need
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Citation
Munene, C. W., & Gachengo, L. W. (2023). Procurement planning practices and performance of commercial state corporations in Nairobi City County, Kenya. The Strategic Journal of Business & Change Management, 10 (4), 882 – 901. http://dx.doi.org/10.61426/sjbcm.v10i4.2793