Effects of procurement management practices on performance of market development projects in Meru county, Kenya

Abstract

The County government had set out its Integrated Development Plan for the 2018 to 2022 to implement various market development projects to reverse the weak business infrastructure in the county. Meru County intended to expand Nkubu and Ntharene Markets. Imenti North Sub County there were aims to establish a modern retail market at Gakoromone, while Buuri Sub County sought to expand Timau Market. Additionally, Igembe Sub County had plans to expand Kangeta Market. These projects did not get to completion as anticipated. As a result, this study sought to assess the effects of procurement management practices on performance of market development projects in Meru County, Kenya. The study specifically looked at how needs training, contract management, supplier relationship management, and information exchange affect the performance of market development projects in Meru County. Steward theory, Stakeholder Theory and Agency Theory led the research. It adopted a descriptive research design for the research methodology. The study targeted 410 officials directly involved in project implementation as respondents, who were selected using a simple random sampling method. Semi-structured questionnaires were employed as the data collection method for gathering primary data. The data obtained from the questionnaires were analyzed using both descriptive statistics and inferential statistics to draw meaningful conclusions. Descriptive statistics, including mean and standard deviation, were used to analyze the quantitative data. Inferential analyses, such as correlation and regression, were also performed to evaluate the relationships between variables. The regression model coefficients revealed that information sharing, contract management, supplier relationship management, and training needs assessment positively impacted the performance of market development projects in Meru County. However, the effect of contract management was not statistically significant. The study concludes that training needs assessment, contract management, supplier relationship management, and information sharing, as components of procurement management practices, are positively correlated with the performance of market development projects in Meru County, Kenya. The study suggests that the Meru County government should prioritize procurement management practices, as they have a positive effect on the performance of market development projects. Specifically, the study highlights the importance of training needs assessment. This approach ensures that the appropriate individuals are selected for training sessions, helps identify knowledge and skill gaps before they become problematic, aligns training with actual business demands, and equips employees with the necessary skills for their roles. Additionally, the study recommends that Meru County emphasize contract management practices to enhance project performance. This can be achieved by utilizing appropriate validation and certification tools, simplifying the identification of contracts with various suppliers, reducing legal expenses, preventing unexpected service renewals, monitoring key project milestones, and employing automated features and notifications.