International Journal of Business & Law Research 3(2):44-60, April-June 2015


© SEAHI PUBLICATIONS, 2015

INFLUENCE OF PROCUREMENT PRACTICES ON ORGANIZATION PERFORMANCE IN PRIVATE SECTOR IN KENYA.: A CASE STUDY OF GUARANTY TRUST BANK KENYA LTD


1KARANJA Maruri Kennedy & David KIARIE2

1M.Sc. Scholar Procurement and Logistics,
Jomo Kenyatta University of Agriculture and Technology, Kenya
2Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya

ABSTRACT
Procurement practices integrate various firmís operations and support functions, synchronizing production with new orders, purchasing with demand, scheduling and shipping with customer requirements. The main objective of this study was to establish the influence of procurement practices on an organizationís performance in the private sector in Kenya. This study employed a descriptive approach on the influence of procurement practices on the performance of private sector firms in Kenya. The target population for this research study was the 137 employees of GT Bank, Nairobi Headquarters from different functional units. This study had a sample size of 42 respondents drawn from among the employees of GT Bank Nairobi Headquarters. Stratified sampling was applied in grouping the respondents. The study employed the use of questionnaires as the principle data collection tool to collect views from the respondents. Descriptive statistics analysis and multiple regression was used. The results of the indicated that procurement practices, E-procurement and contract management influences organizational performance at private sectors. The study also found that the organization performance at private sectors have improved over the past five years. The study recommends the development and issuing of operational guideline, procedures and task descriptions which provide authority to the purchasing department in private sectors. The study further recommends decisions on outsourcing, establishing long-term contracts and contacts with certified and or preferred suppliers, adopting a supplier strategy based on multi-versus single sourcing, making investment decisions and related to policies concerning transfer pricing and intercompany suppliers.
Keywords: procurement practices, e-procurement, organizational performance, contract management