Procurement Best Practices and Procurement Performance of Smes in Nairobi County

Abstract

This study was on procurement best practices and procurement performance of SMEs in Nairobi County. To accomplish study, it used descriptive research design. Out of 450 SMEs operating in Nairobi CBD, researcher sampled 45 SMEs using judgmental sampling method. Forty-one (41) questionnaires was completed and returned by respondents for analysis the respondents were procurement managers, procurement officers and stores clerks. Descriptive statistics and regression method was used in data analysis and results findings presented using tables. The objectives of the study were to establish the extent to which procurement best practices are adopted by SME’s in Nairobi County and to determine the relationship between procurement best practices and procurement performance of SME’s in Nairobi County. Data revealed procurement best practices namely green purchasing had moderate extent, adoption of information technology had moderate extent, supplier partnering had moderate extent and purchasing ethics had moderate extent. Therefore, this had positive relationship between procurement best practices and procurement performance. The study recommends more adoption and application of procurement best practices in SME in order to enhance procurement performance in terms of minimization of cost of market survey, quality checks on merchandise before delivery to customers, flexibility in processing of orders and flexibility in recycling of products procured.