Sustainable Procurement Strategies and Supply Chain Performance of Five-star Hotels in Nairobi County, Kenya

Abstract

Sustainable procurement firms do minimize the external factors on the purchased products. The study sought to investigate the influence of sustainable procurement strategies on supply chain performance of five star hotels in Nairobi County, Kenya. The study adopted a descriptive research design and was guided by the following objectives: to establish the sustainable procurement strategies adopted by five star hotels in Nairobi County; and to establish the influence of sustainable procurement strategies on supply chain performance of five star hotels in Nairobi County, Kenya. The respondents in the study were procurement managers of the five-star hotels owing to the fact that supply chain design strategy fall in the domain of procurement managers in most companies who align their strategies to the overall corporate strategy. A census approach was applied in the study in which case, the sampling frame consisted of all the twenty five-star hotels in Nairobi County. Using SPSS version 21 package, a Multivariate regression model was used to analyse the relationship between sustainable procurement strategies and supply chain performance among the five star hotels. The outcome of the study establishes a near perfect positive relationship between sustainable procurement strategies and supply chain performance yielding a Coefficient of Multiple Determination (R2) of 0.852 implying that up to 85.2% of the variation in the procurement performance of the five star hotels in Nairobi can be attributed to the sustainable procurement strategies they have adopted over the time. The p-value of 0.001 indicates that the impact of sustainable procurement strategies on supply chain performance is significant at the 95% confidence level among five star hotels in Nairobi. The study recommends that local firms implement sustainable procurement strategies to enhance their dynamic capability through supply chain performance. It is clear that a study of this magnitude should include a survey of sizeable number of firms. However time and material resources did not make this feasible and for this reason the study concentrated on five star hotels in Nairobi County. Besides, due to the sensitivity of procurement matters, some of the respondents were non-committal. The study recommends further studies involving confirmatory factor analysis to further test the model so established and to confirm the findings of the study