PROCUREMENT CONTRACTING PRACTICES, PROCUREMENT POLICIES AND SUPPLY CHAIN PERFORMANCE OF ROAD AUTHORITIES IN KAKAMEGA COUNTY, KENYA.

Abstract

Implementing and adopting the procurement Contracting process in public institutions have continuously faced the challenges due to its complexity and lack of resources that directly impacts the supply chain performance. Institutions are operating in a competitive business environment that is dynamic and unpredictable. Key to optimal performance is understanding the procurement contracting practices; pre-contracting, contracting and post-contracting. The study focused on the procurement contracting practices, procurement policies and supply chain performance of road authorities in Kakamega county, Kenya. Specifically the study; established the effect of precontracting procurement practices on the supply chain performance in road authorities in Kakamega; determined the effect of contracting procurement practices on supply chain performance in road authorities in Kakamega; investigated the effect of post contracting procurement practices on supply chain performance in road authorities in Kakamega and examined the moderating influence of the procurement policies in the relationship between the procurement contracting process and the supply chain performance in road authorities, Kakamega County. The study covered three road authorities with regional offices in Kakamega County, KeNHA, KURA, KeRRA. The study was supported by three theories; the system theory, agency theory and institutional theory. Research design used was causal. The target population was 48 respondents that comprised of supply chain officers, roads officers and accounts officers on the road authorities. Census method was adopted in the study. Structured questionnaires were used as a data collection instruments. Pilot testing was conducted in Vihiga County. Data was analyzed using descriptive and inferential statistics. Data presentation was done diagrammatically by use of tables and figures. Likert scale was used to determine how strongly variables agree or disagree with statements on a five-point scale. Key findings of the study were; pre-contracting procurement practices based on contractor pre-qualification and contractor selection had no significant effect on supply chain performance in the road authorities, Kakamega county. Contracting procurement practices based on contractor monitoring and contractor development were equally not significant drivers for supply chain performance. Post-contracting procurement have a significant influence on supply chain performance in Road authorities in Kakamega County. It was concluded that the KeNHA, KURRA and KeRRA can promote supply chain performance by adopting the procurement contracting process in all their operations. Recommendation that were made from the study were as follows; first, there is need for adoption of procurement contracting process as they have been confirmed to be full predictors of supply chain performance. Secondly, there is need for adopting other procurement contracting process in research to unearth their contributions to supply chain performance in public entities. Thirdly, the study recommends the use of post contracting procurement practices as it poses the biggest contributions to supply chain performance. Lastly, procurement policies should be adopted in moderating the relationship between levels of contracting procurement practices and supply chain performance in road authorities Kakamega county. The study findings gave insight to the supply chain managers, accountants and larger contracting team in effectively managing their procurement practices so as to enhance supply chain performance. Contributions to literature; the study has established how both the levels of contracting and procurement policy affect the supply chain performance of the road authorities in Kakamega county. The study suggested a comparative study to be carried out in other public sectors to see the views of management and employees on contract procurement practices and how they influence supply chain performance.