EFFECT OF STRATEGIC PROCUREMENT ON THE PERFORMANCE OF PARASTATALS IN KENYA

Judith Tarus, Dr. Charles Ndeto

Abstract


The study sought to evaluate the effect of strategic procurement on the performance of parastatals in Kenya. The study was guided by the following specific objectives: to assess the influence of strategic sourcing on the performance of parastatals in Kenya; to establish the influence of outsourcing on the performance of parastatals in Kenya; to determine the influence of information technology on the performance of parastatals in Kenya; and to evaluate the influence of inventory management systems on the performance of parastatals in Kenya. The study was guided by Resource-Based View theory, The Partnership Theory, Dynamic Capability Theory, Just in time theory, and Contingency Theory of Management. The study employed descriptive research design. The target population for the study was 187 parastatals in Kenya (Ministry of Devolution, 2019). Purposive sampling technique was used to select 128 parastatals. The study used both primary and secondary data. Primary data was collected by use of Questionnaires. The questionnaire also comprised of both open and closed-ended questions .Quantitative data was analyzed using SPSS version 21.Presentation of data was done through use of Tables and figures. The study concludes that strategic sourcing has a positive and significant effect on the performance of parastatals in Kenya. In addition, the study concludes that outsourcing has a positive and significant effect on the performance of parastatals in Kenya. Further, the study concludes that information technology has a positive and significant effect on the performance of parastatals in Kenya. The study found that inventory management systems have a positive and significant effect on the performance of parastatals in Kenya. From the results, the study recommends technical expertise, matching supply and demand and value for money to improve performance of government parastatals in Kenya. In addition, the study also recommends risk transfer; focus on core competencies and technical capacity to improve performance of government parastatals in Kenya.

Key Words: Strategic Sourcing, Outsourcing, Performance


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