Abstract: The main purpose of this study was to establish the effects of supplier relationship management on organizational performance. Effective supplier relationship management has become a vital valuable way of securing competitive advantage and improving on organizational performance. This is because competition in modern business world is no longer between organizations, but among supply chains. The study was guided by the following research objectives, to determine effect of adversarial supplier, effect of partnership supplier relationship, effect of supplier development relationship and effect of electronic sourcing relationship on procurement performance at Kenya Pipeline Company Limited. Procurement performance is crucial in enhancing the performance of organizations because whatever gets measured gets done. The study was achieved through use of the following theories commitment operational principles theory, theory of constraints, organizational buying behavior theory and resource based approach theory.
The study employed descriptive and inferential research design methods. The target population for the study was 410 employees of Kenya Pipeline Company limited from respective departments. The sample size was 123 which was arrived at by using slovin’s formula from the target population. The study adopted also quantitative research design. The study used both primary and secondary data in collection of data from the respondents which helped them ascertain the results. Data collection was done using questionnaire method. The researcher used pilot testing of 10% to ascertain the validity and reliability for the results for the study. Data analysis and interpretation was based on descriptive statistics as well as inferential statistics mainly regression analysis and Pearson correlation which was employed during analysis of data. Data analysis was analyzed by using statistical packaging social sciences version 22. Data presentation was done through frequency distribution of tables. From the findings results the independent variables adversarial supplier, partnership, supplier development and electronic sourcing have strong significant relationship with the dependent variable (procurement performance). From the study conclusions it is evident that adversarial supplier, partnership, supplier development and electronic resources are key determinants of procurement performance in an organization. It is recommended that in order to boost the morale of the supply chain unit, management of Kenya Pipeline Company Limited should involves suppliers in design of projects and programmes for the benefits of the organization. The study revealed that cooperating with our suppliers is beneficial to organization in regards to long term relationships. The study therefore recommends that organization puts more emphasize openness of communication between supplier and organization suppliers. Performance in any given organization is used as indicator for measuring the capability of the organization on how it can run its activities. It is recommended that oil firm’s stakeholders and policy makers have to strategize on vibrant strategies and policies that initiate and promote performance of the organization.
Keywords: Adversarial Supplier Relationship, Supplier Development, Partnership Relationship, Electronic Sourcing and Procurement Performance.
Title: EFFECTS OF SUPPLIER RELATIONSHIP MANAGEMENT ON PROCUREMENT PERFOMANCE AT KENYA PIPELINE COMPANY LIMITED
Author: Felix Msabaa Mwashegwa, Richard Nondi
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
