Procurement Governance and Procurement Performance of Small Medium-sized Enterprises in Nairobi Central Business District

Abstract

This study was set out to establish the effect of Procurement governance and Procurement performance of SMEs in Nairobi CBD. To accomplish this, the study set out five specific objectives which included; determining the effect of Procurement planning, Procurement and Disposal procedures, Procurement Record management, Procurement code of ethics and Complaints Review mechanism on Procurement performance of SMEs in Nairobi CBD. The study adopted a descriptive research design of a cross sectional type approach and sampled forty (40) SMEs out of the total number of four hundred (400) SMEs in Nairobi CBD through random sampling to take part in the research. The researcher used questionnaires as the main data collection tool. The data was analyzed using the SPSS (version 22). Mean and standard deviation was used to analyze the data which was later on presented in the form of percentages, graphs and frequency distribution tables. The study found out that, most of the respondents were Marketing and Sales managers, with some being Procurement managers. Majority had worked for more than 5 years in their designated roles, meaning that they had enough experience concerning the topic of study. Regression analysis findings revealed that Procurement governance has a positive effect on Procurement performance with all the variables (Procurement planning, Procurement Disposal procedures, Procurement Record management, Procurement Code of ethics, Complaints Review mechanism) hence all these variables have a statistically significant effect on Procurement performance. Based on the conclusion, this study recommends all SMEs in Nairobi CBD to adopt Procurement governance practices such as Procurement planning, Procurement Disposal procedures, Procurement Record management, Procurement Code of ethics and Complaints Review mechanism. This is because these practices improve Procurement performance which in turn ensures that there are no loopholes through which public resources can be misappropriated.