INFLUENCE OF PROCUREMENT ETHICS ON ORGANIZATIONAL PERFORMANCE (A CASE OF EWASO NGIRO NORTH DEVELOPMENT AUTHORITY)

Abdirashid Muktar, Dr. Jane Omwenga

Abstract: Procurement ethics has become an important strategic tool and many organizations are leveraging on it in order to remain competitive. Procurement personnel and organizations in entirety are expected to adopt procurement ethics in order to ensure flawless procurement processes. There are lots of ethical challenges that organizations go through before attaining desired performance levels. The general objective of this study was to examine the influence of procurement ethics on the organizational performance of Ewaso Ngiro North Development Authority (ENNDA), Kenya. The study was guided by the following specific objectives: to evaluate the influence of transparency resulting from procurement ethics on organizational performance of ENNDA; to assess the influence of accountability resulting from procurement ethics on organizational performance of ENNDA; to determine the influence of integrity resulting from procurement ethics on organizational performance of ENNDA; and to examine the influence of confidentiality resulting from procurement ethics on organizational performance of ENNDA. The study was anchored on three theories namely: theory of procurement contracts; agency theory and person-situation interaction theory. A case study research design was adopted for the study. The target population comprised of 42 employees of ENNDA who included the top management, middle level managers, procurement personnel, as well as finance personnel. A census approach was used to include all the 42 respondents for the study. The study used a structured questionnaire containing closed ended questions as the primary data collection instrument. The questionnaires were pretested at Ewaso Ngiro South Development Authority to ensure validity and reliability. The collected data was summarized and analyzed with the aid of SPSS using both descriptive and inferential statistics and then presented in form of tables and charts. The study established that transparency, accountability and integrity resulting from procurement ethics did not have a significant influence on organizational performance of ENNDA. Confidentiality resulting from procurement ethics had a significant influence on organizational performance of ENNDA. Following this, the study recommended that the management of ENNDA should consider reviewing and scaling up the quality of ethical procurement processes; adopting stringent measures that promote record keeping accuracy, effective communication between and among stakeholders; putting in place measures that promote employees adherence to set ethical code that dictates their behavior and actions while doing business; and ensuring that appropriate measures are put in place to ensure maximum protection of commercially sensitive information that a supplier provides during the procurement process. The information can be useful for guiding the development supportive policies and regulations that help in strengthening procurement ethical practices in ENNDA and similar programs

Keywords: transparency, accountability integrity, confidentiality and on organizational performance.

Title: INFLUENCE OF PROCUREMENT ETHICS ON ORGANIZATIONAL PERFORMANCE (A CASE OF EWASO NGIRO NORTH DEVELOPMENT AUTHORITY)

Author: Abdirashid Muktar, Dr. Jane Omwenga

International Journal of Social Science and Humanities Research 

ISSN 2348-3156 (Print), ISSN 2348-3164 (online)

Research Publish Journals

Vol. 7, Issue 2, April 2019 – June 2019

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INFLUENCE OF PROCUREMENT ETHICS ON ORGANIZATIONAL PERFORMANCE (A CASE OF EWASO NGIRO NORTH DEVELOPMENT AUTHORITY) by Abdirashid Muktar, Dr. Jane Omwenga