SUPPLY CHAIN MANAGEMENT PRACTICES, GOVERNMENT POLICY AND PROCUREMENT FUNCTION PERFORMANCE IN KAKAMEGA COUNTY, KENYA

Abstract

In every organization procurement function plays an important role. Due to competition and a fast changing market environment many organizations have started implementing supply chain management practices so as to survive in the long run. The study established Supply Chain Management Practices, Government Policy and Procurement Function Performance in Kakamega County, Kenya. Specifically, established the effect of Procurement Planning on procurement function performance in Kakamega County Government, determined how supplier selection affects procurement function performance in Kakamega County Government, ,assessed how buyer-supplier relationship affects procurement function performance in Kakamega County, found out how information sharing affects procurement function performance in Kakamega County, and determined the moderating effect of Government Policy on the relationship between supply chain management practices and procurement function performance in Kakamega county, Kenya. This study was guided by five null hypotheses. The review of the literature consisted of theoretical review and empirical review. The study was guided by Network perspective theory, Systems theory and principal-agent theory. The conceptual framework consisted of three kinds of variables: independent variables, dependent variables and moderating variable. The study adopted a crosssectional research design involving a target population of all staff members in the procurement department. Census was used. Primary data was collected using questionnaires which was administered through drop and pick method. The researcher used test re-tests method to test reliability of data collection instruments. Pilot study was conducted in Samburu County. Analysis of data was done using descriptive statistics. The study findings were presented in tables. Findings were; supplier selection, buyer-supplier relationship and information sharing were strong predictors of procurement function performance. Procurement planning indicated a positive but non-significant change in procurement function performance. Government policy had non-significant moderating effect between supply chain management practices and procurement function performance. Recommendation, the combined effect of procurement planning, supplier selection, buyer supplier relation and information sharing on procurement function performance in Kakamega county, was positive and statistically significant. Hence the study recommends the application of all these variables be adopted to enhance procurement function performance. In conclusion, County governments in Kenya can enhance procurement function performance levels by embracing supply chain management practices and putting up infrastructure that can help in the implementation of supply chain management practices.