PROCUREMENT TRANSFORMATION PRACTICES ON PERFORMANCE OF BEVERAGE MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, KENYA
Keywords:
Procurement Transformation Practices, Procurement Process Transformation, Technological Transformation, Organizational PerformanceAbstract
Despite importance of beverage manufacturing firms in Kenya, they have been experiencing a lot of turbulence in the recent past including a drop in the GDP, an increasing imbalance of trade and the exiting of large multinationals. The beverage manufacturing firms recorded a significant drop in growth from 4.7% to 1.6% and 2.7% to 0.2% respectively according to the World Bank economic update 2018. The general objective of this study is to examine the influence of procurement transformation practices on organizational performance of beverage manufacturing firms in Nairobi, Kenya. Specifically, the study sought to assess the effect of procurement process transformation on organizational performance of beverage manufacturing firms in Kenya and to determine the effect of technological transformation on organizational performance of beverage manufacturing firms in Kenya. The study used descriptive research design. The target population was 230 management employees from 8 beverage manufacturing companies. The study employed a multistage sampling technique since the target sample for the respondents is large and it is not possible to study all the key employees in beverage manufacturing firms. The sample size was therefore 146 respondents. Primary data was used collected using questionnaire. The pretesting sample was made of 15 respondents, representing 10% of the sample size. Inferential and descriptive statistics were employed for analysis of quantitative data with the assistance of Statistical Package for Social Sciences (SPSS version 25). Descriptive statistics such as frequency distribution, mean (measure of dispersion), standard deviation, and percentages were used. Inferential data analysis was conducted by use of Pearson correlation coefficient, and multiple regression analysis. The study results were presented through use of tables and figures. The study concludes that procurement process transformation has a positive and significant influence on organizational performance of beverage manufacturing firms in Kenya. In addition, the study concludes that technological transformation has a positive and significant influence on organizational performance of beverage manufacturing firms in Kenya. From the results; Firms should continue to invest in and adopt advanced procurement technologies, including procurement databases, e-procurement platforms, and other digital tools. In addition, leverage procurement databases and online platforms to foster better collaboration and communication with suppliers.
References
Adams, M., & Buckle, M. (2018). The Determinants of Operational Performance in Bermuda Insurance Market. Applied Financial Economics, 13, 133-43.
Siedlecki, S. L. (2020). Understanding descriptive research designs and methods. Clinical Nurse Specialist, 34(1), 8-12.
Muema, D. (2021). Sustainable Procurement Practices and Organizational Performance of the County Governments in Kenya (Doctoral dissertation, University of Nairobi).
Suherman, S., Janitra, A. A., Budhiary, K. N. S., Pratiwi, W. Z., & Idris, F. A. (2021, February). Review on hazard analysis and critical control point (HACCP) in the dairy product: Cheese. In IOP Conference Series: Materials Science and Engineering (Vol. 1053, No. 1, p. 012081). IOP Publishing.
Rajab, F., Ngugi, P., & Kiarie, D. (2021). Influence of supplier relationship management on performance of manufacturing firms in Kenya. International Journal of Supply Chain and Logistics, 5(1), 31-45.
Florence, M. N. (2020). Effect Of Strategic Procurement Planning On Organizational Performance Of State Owned Corporations In Coastal And Lower Eastern Regions Of Kenya (Doctoral dissertation, Pwani University).
Nguyen, H., Onofrei, G., Akbari, M., & McClelland, R. (2022). Enhancing quality and innovation performance: the role of supplier communication and knowledge development. Total Quality Management & Business Excellence, 33(3-4), 410-433.
Allen, B. (2021). Broader outcomes in procurement policy–a case of New Zealand pragmatism. Journal of public procurement, 21(3), 318-341.
Mafini, C., Dhurup, M., & Madzimure, J. (2020). E-procurement, supplier integration and supply chain performance in small and medium enterprises in South Africa. South African Journal of Business Management, 51(1), 1-12.
Kim, M. K., & Narasimhan, R. (2019). Designing supply networks in automobile and electronics manufacturing industries: a multiplex analysis. Processes, 7(3), 176.
Gati, H. M., & Machoka, P. (2023). Procurement Transformation Process and Performance Of Food And Beverage Industry In Nairobi City County, Kenya. International Journal of Social Sciences Management and Entrepreneurship (IJSSME), 7(2).
Idrees, M. A., Abbas, M., Ali, S. Q., & Khan, A. (2022). Impact Of E-Procurement On Procurement Practices And Performance Efficiency-A Structural Equation Modeling Approach. Journal of ISOSS, 8(3), 235-250.
Kamau, J., & Thogori, M. (2023). Influence Of Strategic Procurement Management Practices On Procurement Performance Of Tier One Commercial Banks In Kenya. International Journal of Social Sciences Management and Entrepreneurship (IJSSME), 7(1).
Khalid, U., Ahmad, W., Abubakar, M., & Asrar, M. (2020). Determinants of Capital Structure: A Case Of Non-Financial Sector of Pakistan. International Journal of Accounting and Management Research, 1(1), 1-14.
Chawana, M. C., & Ngungi, P. K., (2019). The influence of competitive bidding and performance of small and medium food processing enterprises in Kenya. International Journal of Social Sciences and Information Technology, 5(4), 27-44.
Kiboori, W. G., & Misango, S. B. (2023). Technology adoption influence on organisational performance of dairy farmers’ cooperative societies in O’lessos sub-county, Nandi County, Kenya. Retrieved from http://41.89.96.81:8080/xmlui/bitstream/handle/123456789/1871/
Basias, N., & Pollalis, Y. (2018). Quantitative and qualitative research in business & technology: Justifying a suitable research methodology. Review of Integrative Business and Economics Research, 7, 91-105.
Cooper, D. R. & Schindler, P. S. (2011). Qualitative research: business research methods, Boston, MA: McGraw-Hill.
Cronbach, L. J. (1971). Test Validation. In R. L. Thorndike (Ed).Educational Measurement (2nd Ed.) Washington, DC: American Council on Education.
Cronbach, L. J. (2011). Test Validation. In R. L. Thorndike (Ed).Educational Measurement (2nd Ed.) Washington, DC: American Council on Education.
Cronbach, L. J. (2018). My Current Thoughts on Coefficient Alpha and Successor Procedures. Washington, D: Educational and Psychological Measurement.
Momanyi, S., & Paul, S. (2018). Influence of Supplier Management on Procurement Performance of Sidian Bank in Nairobi County, Kenya. International Journal of Social Sciences and Information Technology 3(4), 540–555.
Kilonzo, G. M., (20218). Procurement best practices and organizational performance: case study of Cadbury’s Kenya limited. Retrieved from http://erepository.uonbi.ac.ke/bitstream/handle/11295/74 y
Kioko, N. J., & Were, S. (2018). Factors affecting efficiency of the procurement function at the public institutions in Kenya (a case of Supplies Branch in Nairobi). International Journal of Business & Law Research, 2(2), 1-14.
Kipkemoi, R.T. (2018). Effects of procurement practices on organizational performance within the public sector: a case of east African Portland Cement Company limited. Retrieved from https://core.ac.uk/download/pdf/157498212.pdf
Gudda, K., Keitany, P. J., & Ombok, M. (2023). Supplier Development and Procurement Performance of Steel Manufacturing Firms in Nairobi City County, Kenya. International Journal Of Academic Research In Business And Social Sciences, 13(9), 938-955
Muthumbi, D.M., & Kamau, J. (2021). Effect of career development on employee performance in Deloitte Limited, Kenya. Journal of Human Resource and Leadership, 1(1), 9-16.
Mwikali, F. (2016). Procurement governance and procurement performance of small medium-sized enterprises in Nairobi central business district. Retrieved from http://erepository.uonbi.ac.ke/bitstream/handle/11295/98947/Mwikali_Procurement%20Governance%20and%
Mwiti, J., Moguche, A., & Rintari, N. (2021). The Relationship between Career Advancement and Job Satisfaction among Teachers in Selected Public Secondary Schools in Igembe North, Kenya. Human Resource and Leadership Journal, 6(1), 49-64.
Lewis, M. A.; Roehrich, J. K. (2019), Contracts, relationships and integration: towards a model of the procurement of complex performance, International Journal of Procurement Management, 2, (2), 125-142.
Viale, L., & Zouari, D. (2020, July). Impact of digitalization on procurement: the case of robotic process automation. In Supply Chain Forum: An International Journal (Vol. 21, No. 3, pp. 185-195). Taylor & Francis.
