Procurement Management Practices and Supply Chain Performance of National Referral Hospitals in Nairobi City County, Kenya
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Date
2023
Authors
Kamau, Alice Njoki
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Improved technological devices, effective medication, a competent staff to patient ratio that is acceptable, efficacy, cost, and providing services speed are all examples of what constitutes excellence within the healthcare industry. The supply as well as accessibility of healthcare amenities and pharmaceuticals in Kenyan hospitals is still a mystery, especially in the case of top-tier hospitals, which are more severely impacted by a lack of suitable drugs and medical equipment and hence require efficient supply chain. Although many hospitals have acknowledged the importance of supply chain performance, implementing methodologies, strategies, and standard procedures that have been extensively established in industrial settings is still a major challenge. This has greatly contributed to the present lack of medications and other key supplies needed for hospitals to efficiently carry out their primary responsibilities. Therefore, this study aimed at determining the association between supply chain efficiency and procurements managements practices in public referral hospitals in Nairobi County, Kenya. Specifically, the study determined the impact of competitive tendering, procurement transparency, procurement planning, and supplier approval monitoring on supply chain efficiency in referral hospitals in Nairobi County. The normalization process theory, resource-based view theory and supply chain operations reference model served as the anchored theories for the investigation. The research project used descriptive survey design. The three referral hospitals in Nairobi County, Kenya, were target population of the investigation. The unit of observation for this study were the 327 hospital managers, procurement officers, accountants and staff procurements. Stratified random sampling technique was utilized in picking 187 respondents. Before actual data collection, the questionnaire was piloted on 18 respondents representing 10% of study sample size; they were selected from Mbagathi county referral hospitals in Nairobi County. Validity and reliability of questionnaire were evaluated using results of pilot test. Results of reliability of all variables shows the reliability is above 0.7. With the aid of one study assistant, data was sourced with drop-and-pick questionnaires. SPSS was utilized in computing descriptive and inferential analysis of collated data. Included in the descriptive statistics were mean, mode, standard deviation, and variance. Correlation and regression analysis were both included in inferential analysis. Tables, charts, and graphs with frequency data were used to present the findings. Diagnostic test was taken, test showed that there is no serial autocorrelation, no multicollinearity and variables are normally distributed. The correlation co-efficient indicates level of strength of relationship between variables in a study at 91%. The investigation concluded competitive tendering was positive and significant on supply chain performances (t= 1.711, p value > 0.05), procurement transparency has positive and significant effects on supply chain performances (t= 14.75, p value > 0.05) procurement planning have positive and substantial effects on supply chain performances (t=5.758, p value> 0.05) and supplier qualification managements had significant positive effects on supply chain performances (t= 3.719, p value = 0.05). The study recommended that governments should provide transparent reasons for the award based on predetermined standards once it has been made. All bidders should be identified and their beneficial ownership made public by the government. The details of government contracts, including appendices, schedules, and references, must be made public. The government must provide regular and routine updates on the contract's execution, performance, these will improve supply chain performance of national referral hospitals in Nairobi and others in Kenya. All moral research ethics were duly followed.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirement for the Award of the Masters Degree in Business Administration (Procurement and Supply Chain Management) of Kenyatta University, November, 2023
Keywords
Procurement Management Practices, Supply Chain Performance, National Referral Hospitals, Nairobi City County, Kenya