ROLE OF SUPPLIER RELATIONS MANAGEMENT ON THE PERFORMANCE OF HOSPITALS IN KIAMBU COUNTY, KENYA

Abstract

Despite the extensive law provisions that guide the procedures of procurement among hospitals in Kenya, there have been numerous issues arising that affect supplier relations management. Poor supplier relations have significant financial implications as well. Thus, this study sought to investigate the role of supplier relations management on the performance of hospitals in Kiambu County, Kenya. The study was guided by the following specific objectives; to establish the role of supplier selection on the performance of hospitals in Kiambu County and to determine the role of supplier payment on the performance of hospitals in Kiambu County. This study employed a descriptive research design. The study targeted all 115 registered hospitals in Kiambu County. Due to the small size of the population, the study adopted census sampling design. Therefore, the sample size of the study was 115 top level officials from procurement departments. This research used a questionnaire to collect primary data. The study carried out pilot study to pretest and validated the questionnaire and the interview guide. Questionnaires were distributed to 15 of the total 115 115 registered hospitals in Kiambu County. The selected sample was excluded from the final study. Quantitative data collected using questionnaires was analyzed by the use of descriptive statistics using Statistical Package for Social Sciences. To test the relationship between the study variables, inferential statistics was computed using correlation and regression analysis. The results were presented in form of tables and figures. The study concludes that supplier selection has a positive and significant effect on performance of hospitals in Kiambu County. The study also concludes that that supplier payment has a positive and significant effect on performance of hospitals in Kiambu County. From the findings, the study recommends that Hospitals in Kiambu County should consider a broader range of criteria when selecting suppliers. In addition to financial stability and experience, they should also evaluate factors such as ethical practices, compliance with regulatory standards, and the ability to adapt to changing healthcare needs.

Key Words: Supplier Relations Management, supplier selection, supplier payment and Performance of Hospitals