Relationship between International Procurement Practices and Supply Chain Performance of Energy Development Agencies in Kenya
Abstract
As part of the global economy, companies today are seeking to improve their competitiveness by managing the supply chain process. This involves managing the suppliers and the logistics involved in the movement of goods from the suppliers to the location of consumption in the organization. Worldwide, national economies are faced with the challenge of improving their supply chains, especially within their energy sectors as the generation and supply of reliable energy is the backbone of all developed economies. Therefore, this study sought to establish the relationship between international procurement practices and the supply chain performance of energy development agencies in Kenya. The positivistic philosophy approach was adopted for the study. The study adopted a cross-sectional survey research design to collect a large number of quantitative data at a point in time to establish patterns of value addition in the Kenyan energy sector. The study's target population consisted of six energy development agencies in Kenya as outlined by the Ministry of energy (2018). The unit of analysis was the energy development agencies. The study purposely sampled only the top managers and middle managers since they are the key individuals handling the strategic issues within the departments. This study utilized primary data. Primary data was obtained using self-administered questionnaires. Quantitative data was analyzed using Statistical Package for Social Sciences (SPSS). Regression results showed that when international procurement practices through international sourcing, international supplier International procurement practices through international sourcing, international supplier evaluation, ethical procurement practices and supplier relationship management were positively and significantly related to the supply chain performance of energy development agencies in Kenya. The study concluded that there is a significant relationship between international procurement practices and the supply chain performance of energy development agencies in Kenya. The study recommended that the management of energy corporations should put measures in place to ensure that all the drawn ethical policies and codes are adhered to by all the supply chain staff as well as by the suppliers that they deal with. The energy corporations should therefore firmly deal with conflicts of interest in the supply chain, ensure fair dealings with the suppliers, treat suppliers' information with the utmost confidentiality and adhere strictly to all their ethical policy statements, to improve their supply chain performance. The study recommended that all energy corporations should establish supplier appraisal audit policies because this will help them ensure that they will deal with qualified and competent suppliers. It was also recommended that all the energy corporations should adopt the ethical policies and guidelines that have been established by the Public Procurement and Regulatory Authority (PPRA) as well as the Kenya Institute of Supplies Management (KISM) since they are all aimed at ensuring that all the public institutions conduct their supply chain processes in line with the Public Procurement and Asset Disposal Act (PPADA), 2015. Lastly, the study recommended that all state corporations should focus on supplier relationship management by understanding the supplier's business positions.
Keywords: International Procurement Practices, Supply Chain Performance, Energy Development Agencies & Kenya.
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