An analysis of the effect of supplier relationship management Practices on procurement performance among counties in Kenya. A case of Kakamega county government

Abstract

Signs of poorly managed supplier relationships include late delivery, subpar goods, duplicated raw materials, and repeated legal threats from suppliers owing to unpaid invoices. The firm risks losing both its most valuable suppliers and its most dedicated consumers if the aforementioned supply chain issues are not resolved. Therefore, the Kakamega county administration has taken some heat for the way it has handled ties with its suppliers. The high cost of goods and services provided, poor workmanships in various projects, and the stalling or incompleteness of other projects are just some of the issues highlighted in the audit report on the performance of the county government of Kakamega for the financial years 2016/17, 2017/18, 2018/19, and 2019/20. Despite these challenges, there has not been research on the same. Therefore the general objective of this study was to establish the effect of supplier relationship management on procurement performance in Kakamega County Government. Specific objectives of the study were: To determine the effect of supplier collaboration on procurement performance; to examine the effect of supplier commitment on procurement performance, and to determine the effect of supplier communication on procurement performance in Kakamega County Government. This study was also guided by the following hypotheses: H01: Supplier collaboration has no significant effect on procurement performance in Kakamega County Government; H02: Supplier commitment has no significant effect on procurement performance in Kakamega County Government; and H03: Supplier communication has no significant effect on procurement performance in Kakamega County Government. This study was therefore mainly guided by the transaction cost theory and also supported by theory of constraints, and social exchange theory.. The research design for this study was descriptive. The study population consisted of a Chief Officers, procurement officers and suppliers who were 80 in total. A census survey was therefore used on this total population. Primary data was collected via the use of questionnaires. The county government of Vihiga provided eight volunteers for the trial run. The supervisor and subject matter experts were contacted to establish the reliability of the data collection tool, yielding a rating of 0.89. The reliability of the instrument was calculated using the Cronbach alpha coefficient, and a result greater than 0.7 was obtained, indicating its dependability. Multiple regression analysis was used to examine the performance of Kakamega County Government's supplier relationship management and procurement, while means and standard deviations were used to characterize the organization's progress toward its objectives. Using multiple regression analysis, the study discovered no statistically significant connection between supplier collaboration and procurement performance. Supplier dedication strongly influences procurement performance, according to research conducted in Kakamega County, Kenya. A statistically significant correlation was also established between supplier communication and procurement success. Supplier commitment and supplier communication, but not supplier collaboration, were shown to affect procurement success in the Kakamega county administration. The research shows that a stronger focus on supplier commitment and supplier communication will help the county government of Kakamega improve its procurement performance. To reap the benefits of supplier relationship management, the county administration of Kakamega should be pushed to adopt the practice. The study was conducted with the expectation that researchers, policymakers, and practitioners would gain some insight from it.