Investigation of strategic supplier related factors affecting performance of procurement function: a case of' Mathira Water and Sanitation company
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Date
2014-07-23
Authors
Maina, Esther Wangui
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Abstract
This study is set to establish the strategic supplier related factors affecting the performance of the
procurement function in the service industry. A strategy includes all the organization's moves
and managerial approaches that can be taken to achieve the organizations objectives. The major
objective for any organization is to secure competitive advantage and elevate the organizations
performance. A well functioning procurement function is an asset to any forward looking
company .This is because the all important task of acquisition of the required materials or
services as well as their management once acquired is the responsibility of the procurement
function. Specifically, the research attempted to establish the effect of financial stability, quality
aspects, past performance and reliability of suppliers on the performance of the procurement
function. The research findings are of benefit to Mathira Water and Sanitation Company and
other water and sanitation service providers across the nation since they can implement the
recommendations that have been advanced by the study. The research findings are of benefit to
others researchers since they can carry out further research on areas left out by the researcher.
The research findings contribute to literature in the area of study which can be of use to scholars.
The researcher has related the study with other past studies carried out related to similar topic.
The research has criticized studies carried in advance in relation to its findings under the critical
review section. The research has come up with recommendations, conclusions and gaps to be
filled by the study. The research has used a case study research design. This was found
appropriate because it allowed a detailed study of the area in question. The case study research
design was found suitable for this study because all the water and sanitation companies in the
country were started at the same time after the water sector reforms of 2002.Furthermore, the
companies have similar mandate and are governed the same way. As such, findings of a study
carried out in one company can be generalized to a very large extent. The target population
comprised of 104 employees of Mathira water and Sanitation Company consisting of the senior
management, permanent staff and those under contract. Purposive sampling was used to ensure
that only those involved in the procurement process were used in the study. Data was collected
using a questionnaire with both open and close ended questions. The questionnaires were
administered using drop and later pick method. Data has been presented using tables, graphs, and
percentages. Statistical package for Social Sciences (SPSS) was used to generate data array for
subsequent analysis. Data analysis has been done using descriptive statistics. Findings of the
study show that financial stability of suppliers, quality management aspects of suppliers, past
performance and reliability of suppliers have a significant effect on performance of procurement
function. The study recommends that suppliers should be evaluated to establish their financial
stability, quality management aspect, their past performance and reliability before awarding them
with contracts to supply goods or services. The study further recommends that orders should be
placed with suppliers who have been evaluated on the given parameters and found to be
satisfactory and included in the approved vendors list. The study Suggests that further research
be carried out by other scholars on other variables affecting performance of procurement
function not addressed by the study
Description
Department of Business Administration,78p. 2013, HD 39.5 .M3