The Intervening Effect of Planning Function of Management in the Relationship between International Procurement Practices and Supply Chain Performance of Energy Development Agencies in Kenya
Abstract
During the procurement planning process, the procurement method is assigned and the expectations for the fulfilment of procurement requirements are determined. The planning function of management entails a set of goals and targets that aim to transform and improve the image of the public service through the quality delivery of services. This study sought to establish the intervening effect of the planning function of management in 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). They established a partial mediation effect on the mediating role of the planning function of management on the relationship between international procurement practices and supply chain performance. The study thus rejected the null hypothesis and adopted the alternative hypothesis that there is a significant intervening effect of the planning function of management in the relationship between international procurement practices and the supply chain performance of energy development agencies in Kenya. The study concluded that there is a significant intervening effect of the planning function of management in the relationship between international procurement practices and the supply chain performance of energy development agencies in Kenya. The study also found that from the responses, the agencies had adopted well-laid-out strategic plans that are well planned and management organizes all the required resources for optimal supply chain performance. The management had stipulated a clear vision, mission and strategic goals and is effective in directing the agency towards achieving its vision and mission. The study also recommended that measures should be put in place to ensure that only exact quantities of materials are procured in a way that minimizes the overall cost of the supply chain. Effective use of e-procurement technologies should be highly encouraged to achieve this. To improve the supply chain performance more, the study recommended that the supply chain managers should be holding regular supplier appraisals and meetings to know the areas of improvement on the part of the suppliers. Specific e-procurement implementation key performance indicators should also be defined and closely monitored since this will lead to improvement in supply chain performance.
Keywords: Planning Function of Management, International Procurement Practices, Supply Chain Performance, Energy Development Agencies & Kenya.
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