Abstract: Multinational firms are always under pressure to find the most profitable ways to bring products to market. To effectively compete, organizations must continuously improve their performance by reducing costs, enhancing quality, and differentiating their products and services. Increasingly, this means relying on third parties management and outsourced services have to lead to a highly collaborative working relationship with their suppliers. This study therefore aimed at to determine the role of supplier management practices in the optimization of operational performance in telecommunication service industry in Kenya. A case of Safaricom Kenya. The independent variable of this study are supplier selection process, supplier involvement practices, supplier development practices, and supplier monitoring programs while the dependent variable of the study is optimization of operational performance. Theories relevant to this study were Transaction Cost Theory, Resource Dependency Theory, Social Capital Theory and Deming's theory of Total Quality Management. Study variables were discussed under the conceptual framework after that operationalized. The target population constitutes of Safaricom employees involved in procurement operation and suppliers of both at headquarters and other customer care centers with a sample size of 50 staffs and suppliers. Stratified random sampling was carried out. The research instruments that were used included printed questionnaires. Data collected were analyzed using both descriptive and inferential statistical tools, and SPSS version 21 was used to process the collected data which was then to be presented in the form of tables. Correlation analysis was conducted to describe the strength of the linear relationship between two variable which indicated that 76.2% of change of Optimization of Operational performance was explained by the four variables namely; supplier selection process, supplier development programs, supplier involvement, supplier monitoring programs and revealed that they play a significant role in optimizing of operational performance. The study recommends that management of companies in telecommunication industry should embrace overall effective and efficient supplier management practices that focus on long-term goals of the organization.
Keywords: Operational Performance, Supplier Selection Process, Supplier Involvement Practices, Supplier Development Practices, And Supplier Monitoring Programs.
Title: Role of Supplier Management Practices in Optimization of Operational Performance in Telecommunication Service Industry in Kenya: A Case of Safaricom Limited
Author: Muo Charles, Dr. Jane Omwenga
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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