Supplier Evaluation and Supply Chain Performance of Telecommunications Firms in Kenya

Abstract

Effectiveness in operations of a firm is highly attributed to adoption of supplier evaluation in the supply chain management processes of firms in Kenya. Telecommunication firms have become very essential in day to day life of the Kenyan population based on the fact that they have specialized services, fast internet service in the current digitalized economy. The study was aimed at establishing the effect of supplier evaluation on supply chain performance of telecommunication firms in Kenya. It was specifically aimed at establishing how quality, financial stability, supplier operational attributes, supplier information technology and environmental issues affect performance of telecommunication firms in Kenya. The study was guided by goal setting and transactional cost economic theories. The study used descriptive research design in its methodology since it focused on the supplier evaluation criteria on supply chain performance of telecommunication firms in Kenya. The study used primary data in the research. Data collection was effected by use of structured questionnaires. Procurement managers and the equivalent were the targeted population from the 30 telecommunication firms in Kenya. These questionnaires were issued through drop and pick method, coded, keyed, and analyzed using both descriptive and regression analysis. The regression model used had five variables; financial stability, quality, environmental issues, supplier operational attributes and supplier information technology were the dependent variables while residential supply chain performance was the independent variable. The study findings evidenced that all the supplier evaluation criteria had a positive impact on supply chain performance. In addition to that the findings evidenced that all the supplier evaluation criteria had been adopted in telecommunication firms I Kenya. .The major limitation of the study is that it was based on telecommunication firms only. Further studies need to e done on supplier evaluation criteria and supply chain performance in other firma rather than the telecommunication firms alone.