Publication: Influence Of Strategic Sourcing Practices On Procurement Performance Of Lamu County Government In Kenya
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2024-03
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IOSR Journal of Business and Management
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Abstract
The impact of strategic sourcing on various aspects of organizational performance has been well-documented.
Strategic sourcing plays a crucial role in fostering effective communication and building enduring relationships
between suppliers and buyers, both of which are factors that influence the overall performance of a firm. This
research paper aimed to examine the impact of strategic sourcing practices on the procurement performance of
the Lamu County Government in Kenya. The study was guided by specific objectives, including assessing the
influence of supplier development practices on the procurement performance of the Lamu County Government,
investigating the effects of e-sourcing practices on procurement performance, analyzing the influence of financial
evaluation practices on procurement performance, and evaluating the effects of outsourcing practices on
procurement performance within the Lamu County Government. The study was guided by The Balanced
Scorecard (BSC) theory and strategic choice theory. This study adopted a descriptive research design, which
portrays participants in a precise manner as it characterizes the individuals who are involved in the research.
The target population comprised of two hundred and one (201) employees and pre-qualified suppliers of Lamu
County government that comprised the head of directorates, procurement officers, county chief officers and prequalified suppliers. The study employed a stratified sampling method where a sample of 52 respondents were
selected. A pilot study was conducted with at least ten per cent (10%) of targeted sample size to determine the
validity of the research instruments. Data was collected using structured questionnaires. The study undertook
both descriptive and inferential statistics in data analysis. Quantitative and qualitative data were analysed by use
of Statistical Software for Social Sciences (SPSS) version 24to generate mean, standard deviation, frequencies,
regression and correlation analysis. Frequency distribution table and charts were also used in the presentation
of the data. Data analysis was conducted using multiple regression models. Based on the findings, conclusions
were drawn and recommendations were provided to improve the delivery of high-quality products and the
provision of dependable services. From the findings, all four independent variables of the study had a positive
and significant influence on procurement performance. Based on the magnitude of the unstandardized regression
coefficients, supplier development had a weak positive and significant contribution to procurement performance,
e-sourcing had a weak positive significant contribution to procurement performance, financial evaluation had a
strong positive contribution to procurement performance while outsourcing had a moderate positive and
significant contribution to procurement performance at Lamu County. Based on the findings, the study concludes
that; strategic sourcing practices influence procurement performance of Lamu County Government in Kenya. In
relation to specific objective, the study concludes that: supplier development has a weak positive and significant
contribution to procurement performance; e-sourcing has a weak positive significant contribution to procurement
performance; financial evaluation has a strong positive contribution to procurement performance and
outsourcing has a moderate positive and significant contribution to procurement performance at Lamu County.
Description
Keywords
Strategic sourcing practices, procurement performance, balance scorecard, Strategic Outsourcing