Analysis of strategic procurement practices, collaborative capability and operational performance of independent offices and commissions, Kenya

Abstract

Independent offices and commissions were established in the constitution of Kenya, 2010 with the objective of protecting the sovereignty of people and democratic values. The National Treasury report 2018, show that of the 16 independent offices and commissions, only one had implemented strategic procurement practices enshrined in Access to Government Procurement Opportunities (AGPO) 30% directive. Controller of Budgets report 2022, further shows that 78% of procurement employees did not meet their performance targets in terms of timeliness, cost effectiveness, quality and customer service improvements in 2020, increasing from 62% in 2017. Reports indicated that only 56% of strategic practices are often fit to achieve desired result. While previous works have sought to address these pitfalls, reviewed studies on sourcing strategies were in diverse contexts & built on different theories. Previous considered works on contract management did not consider its important measures such as planning, monitoring & documentation. Majority of reviewed works on negotiation were reviews in diverse contexts. Theoretical submissions on collaborative capability built on different methodologies and designs. Empirical discussions on collaborative capability espoused it used as moderator in differing relationships and environments. A portion of reviewed literature on strategic procurement practices and performance showed weak relationship, suggesting need for moderation effects. The aim of study was to analyze strategic procurement practices, collaborative capability and performance of independent offices and commissions, Kenya. Specifically, the study sought to determine effects of sourcing, contract management, negotiation and collaborative capability practices on performance and further investigate moderating role of collaborative capability on strategic procurement practices and performance relationship. The study was mainly based on Relational View Theory. A correlational survey design and positivism approach on a target population of 216 respondents made up of heads of procurement, procurement officers and departmental heads from which a sample of 140 was selected using Krejcie & Morgan sample tables. Primary data was collected using a questionnaire. Supply Chain Management (SCM) expert opinion and factor correlations (r >.65) confirmed construct & content validities while reliability was affirmed through Cronbach alpha with values (0.7<α<0.89). The data were analyzed by descriptive and inferential statistical techniques including correlation and regressions. The results reveal that adopting strategic procurement practices has a significant positive effect (Sourcing practices: β=0.426, R2=0.181, t=5.438, p<0.05; Contract management practices: β=0.557, R2=0.311, t=7.754, p<0.05; Negotiation practices: β=0.721, R2=0.520, t=12.16, p<0.05) Collaborative Capability Practices: β=0.745, R2=0.555, t=12.99, P<0.05, indicating that practical unit increase in adoption of Sourcing, Contract management , Negotiation and Collaborative capability practices results to 0.43, 0.58, 0.72 and 0.75 units increase respectively. Presence of interactive effect confirmed moderation (β=0.429, R2=0.136, t=9.688, p<0.05) proving that incorporating collaborations in supply chains improves the effect of strategic procurement on performance by 0.439 units. The study recommends that stakeholders in supply chain firms need to continuously derive policies geared towards improvement in use of sourcing, contract management, negotiation and collaborative capability practices and further enhance collaborations among parties to achieve higher results. The study is profound as it proves that strategic procurement practices are indeed frugal firm practices that may derive more value in the presence of collaborations.