Procurement Management Practices and Organizational Performance of Construction Firms in Nairobi County

Abstract

Worldwide aggressive nature of competitors for both independent and governmental institutions has catalyzed automation of services to advance competitiveness in the present day. Therefore, it becomes fundamental for firms to ensure that their consumers obtain the best value at a worthwhile sacrifice in order to insure contentment. Endorsing practical approaches in regard to procurement management practices enables firms to escalate firm performance and earn a competitive advantage. Examining the effect of procurement management practices within the construction firms’ performance in Nairobi County was the main objective of the study. In organizations, procurement is an expensive but important business activity. This is due to the fact that organizations spend around 70% of their revenue on procuring goods and services. The target population was 836 firms of which a sample of 84 firms was taken. From 84 firms, primary data was collected using questionnaires. The Participants who included the procurement managers returned back 63 questionnaires. The findings revealed that procurement management practices to a moderate extent had an effect on performance in the construction firms in Nairobi. The study recommended that firms that had not implemented procurement management practices should incorporate the practices into the system.