Influence of Tender Award Process on Performance of Private Commercial Banks in Kenya
Abstract
Procurement function has been acclaimed as an effective and promising means of improving the performance of private enterprises as well as government departments. The debate in the private sector has been more complex than just increasing the effectiveness of tender award systems and narrowing the gap between ambitious strategies and annual planning. The private sector acknowledges that over the years there has been poor performance in the private sector, especially in the management of its meager resources which has hindered the realization of sustainable profitability. To improve the tender award process performance, the private sector has continued to undertake a number of reform measures. The study examined the influence of tender award process on performance of private commercial banks in Kenya. It employed a descriptive research design, targeting procurement, finance and ICT staff at all private commercial banks. A census was conducted where 117 staff in the procurement, finance and ICT department were issued with questionnaires. Data was collected using self-administered questionnaires. The data collected was analyzed by use of descriptive and inferential statistics. Multiple regression models was used to show the relationship between the dependent variable and the independent variables. Findings of the study indicated that organizational policy, procurement skills and competencies, ICT adoption and ethical practices have a positive relationship with performance of private commercial banks. Finally, the study recommended that institutions should embrace effective tender award process so as to improve performance and further researches should to be carried out in other institutions to find out if the same results can be obtained.
Keywords: Organizational Policy, Procurement Skills, ICT Adoption, Ethical Practices, Performance, Private Commercial Banks and Kenya.
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