PROCUREMENT TRANSFORMATION PRACTICES ON PERFORMANCE OF BEVERAGE MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, KENYA

Authors

  • Candida Bosibori Jomo Kenyatta University of Agriculture and Technology
  • Dr. Charles Ndeto Jomo Kenyatta University of Agriculture and Technology

Keywords:

Procurement Transformation Practices, Procurement Process Transformation, Technological Transformation, Organizational Performance

Abstract

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.

Key Words; Procurement Transformation Practices, Procurement Process Transformation, Technological Transformation Organizational Performance

Author Biographies

Candida Bosibori, Jomo Kenyatta University of Agriculture and Technology

Masters Student

Dr. Charles Ndeto, Jomo Kenyatta University of Agriculture and Technology

Lecturer

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Published

2024-05-07

How to Cite

Bosibori, C., & Ndeto, C. (2024). PROCUREMENT TRANSFORMATION PRACTICES ON PERFORMANCE OF BEVERAGE MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, KENYA. International Journal of Management and Business Research, 6(1), 268–280. Retrieved from https://grandmarkpublishers.com/index.php/ijmbr/article/view/81

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Articles