Abstract: The current business environment is growing to be more challenging, and so, companies have to increase their business operations to stay competitive. According to this idea, one of the most important factors for improving business operations is implementing of procurement management practices that translates into improved organizational performance. Hence the general objective of this study was to establish influence of procurement practices on organizational performance of energy sector: a case of Kenya power company, Thika region with the Specific objectives which are to assess the influence of procurement planning on organizational performance at Kenya Power Thika region, to determine the influence of supplier relationships on organizational performance at Kenya Power Thika region, to establish the influence of Technology utilisation in Procurement on organizational performance at Kenya Power Thika region, and finally to find out the influence of procurement policy on organizational performance at Kenya Power Thika region. The study adopted both descriptive and correlational design. A correlation research design is a specific type of non-experimental design used to describe the relationship between or among variables. The target population of the study was 1400 employees of Kenya Power in Central Kenya region working in Thika station. The respondents are 14 top level managers, 300 middle level managers, and 1086 lower level managers The study used Yamane formula to determine the sample size of 311. In this case the study selected 3 top level managers, 67 middle level managers, and 241 lower level managers from the Kenya Power Thika Station. The study used stratified random sampling method. The stratified sampling was used because the employees are divided into various strata. The individual respondents was randomly selected from the target population. Data collection was done through primary and secondary sources in soliciting information from respondents. Primary data was collected using structured questionnaires. On the other hand, secondary data was collected from the research journals, reports, and internet. The questionnaire was subjected to content, construct and face validity. The Cronbach’s alpha (α) approach was used to test for the reliability of the instrument. The research adopted descriptive statistics and inferential statistics to analyze quantitative data. Data was analyzed using the statistical package for social sciences (SPSS) version 20.0 based on the questionnaires. The descriptive statistics involved frequency distribution table, percentage, mean and standard deviation while the inferential statistics was correlation analysis. The Pearson’s correlation was used to test for the relationship between the independent variables and the dependent variables. The study found that 79.8% which means that the independent variables (Information Technology, Supplier Relationships, Procurement Planning, Procurement Policy) explained organisational performance to an extent of change. There are other factors which are not captured by the proposed model in this study which are captured by 20.2% which is not explained. The study was having value to the Procurement Department of Kenya Power Company as they knew that the value of having the procurement best practices that they can achieve efficiency and effectiveness in performance. The study will help procurement managers in various organizations understand the procurement best practices and thus use them when they will undertake procurement process in their organizations.
Keywords: Information Technology, Supplier Relationships, Procurement Planning, Procurement Policy.
Title: INFLUENCE OF PROCUREMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE OF ENERGY SECTOR IN KENYA, (A CASE OF KENYA POWER COMPANY, THIKA REGION)
Author: Jane Nduta Mwinga, Dr.Anaya W. Senelwa
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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