STRATEGIC PROCUREMENT PRACTICES AND PROCUREMENT PERFORMANCE OF STATE CORPORATIONS IN KENYA

Grace Awuor Owino, Dr. Denis Juma

Abstract


In today’s competitive business environment, many companies are trying to find new ways to achieve competitive advantage. The business environment is constantly changing and becoming more complex, organizations. Strategic management is concerned with defining and achieving long-term goals and objectives by effective interaction and adaptation with dynamic environment in a continuous basis within limit of resources. The aim of this study was to investigate the effect of strategic procurement practices on the procurement performance in state corporations. The objectives of the study are to examine the effect of strategic sourcing on the procurement performance of state corporations in Kenya and to establish the effect of strategic negotiation on the procurement performance of state corporations in Kenya. The study uses the descriptive survey design and the population is 96 state corporations. Data was collected structured questionnaire. The data was analysed using descriptive statistics mainly the means, standard deviation, frequencies. The study also used multiple regression to test the relationship between the variables. The study found that the state corporations in Kenya employ the strategic sourcing practices to a great extent which had a positive significant effect on procurement performance. The study also found that the corporations largely employed the strategic negotiation practices which had a positive and significant effect on the procurement performance. The researcher recommends that the management of the state corporations should do more of the strategic sourcing where they get the best services from the experts and concentrate on their core to enhance the procurement performance. The management should engage more in them negotiation so as to gain more from the practice and enhance the procurement performance.

Keywords: Strategic Sourcing, Strategic Negotiation, Procurement Performance, State Corporations 

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