PROCUREMENT PROCESS OPTIMIZATION AND PERFORMANCE OF COMMERCIAL STATE CORPORATIONS IN KENYA
Abstract
Commercial state corporations in Kenya have adopted procurement optimization strategies to ensure cost reduction and improve efficiency in their supply chains. However, despite the adoption of procurement optimization strategies, the performance of commercial state corporations in Kenya remains low, and in most cases continues to decline. This study therefore sought to investigate the effect of procurement process optimization on the performance of commercial state corporations in Kenya. This study utilized a descriptive research design. The unit of observation was managers in finance, procurement/supply chain, operations and information and communication technology departments in the 33 commercial state corporations in Kenya making a total population of 132. Purposive sampling was used to select managers in commercial state corporations. Secondary data was obtained from annual reports of the commercial state corporations. Primary data was collected by use of a semi-structured questionnaire. A pilot test was conducted to assess the validity and reliability of the research instrument. The questionnaires generated both quantitative and qualitative data. Thematic analysis was used to analyze qualitative data from the open-ended questions and the results were presented in a narrative form. Descriptive and inferential statistics were used in analyzing quantitative data with the help of the Statistical Package for Social Sciences (SPSS version 24) statistical software. Descriptive statistics included frequency distribution, percentages, mean, and standard deviation. Inferential data analysis was done using correlation analysis and linear regression analysis. The results were then presented in tables and figures such as bar charts and pie charts. The study found that procurement process optimization has a positive and significant effect on the performance of commercial state corporations in Kenya. Therefore, the study recommends that commercial state corporations should use technology to manage the entire procure-to-pay cycle instead of the traditional manual method since procurement automation speeds up the procurement process by freeing employees from repetitive and time-intensive tasks, minimizes labor costs and reduces errors.
Key Words: Procurement Process, Optimization, Performance, Commercial State Corporations
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