Procurement practices and the performance of parastatals in kenya
Abstract
In today’s dynamic global competitive business environment, technology-based service
is no longer an afterthought rather it is a must for public and private organizations. It has
become necessary for companies to provide their customers with cost-effective total
solution and better customer satisfaction with innovative ideas and methods. Adoption of
effective procurement practices is one such approach to gain competitiveness and
increase organizational performance. The objective of the study was to establish the
Effects of procurement practices on organizational performance of Parastatals in Kenya.
The research adopted a descriptive research design. Data was collected using a selfadministered
questionnaire that was distributed to 76 senior and middle level managers at
the firms. The finding of the study was that procurement is both a driving force to
competitive strategy selection and an important resource to achieving improved
organizational performance. It was found that if procurement practices are employed
effectively, then is expected to improve firm-customer relationship, preserve the
environment, motivate and improve the coordination of staff. One limitation of the study
is that the researcher measured only the operational side of procurement and considering
the early stages of procurement implementation on the organizations. Further research
could extend on measuring the strategic level of procurement and analyze the impact of
electronic procurement at the strategic level.
Citation
Master of Business AdministrationPublisher
University of Nairobi