Supply Chain Inclusivity and Performance of State Corporations in the Energy Sector in Kenya.

Abstract

In recent years, there has been a growing recognition of the importance of diversity and inclusivity in supply chain management. This includes a focus on promoting diversity and inclusivity within the workforce, as well as in the supply chain itself. Governments while deploying public funds for the provision of goods, works and services have realized the need to use supply chain function to advance social and economic development by ensuring the inclusion of otherwise excluded. However, there is little research done to establish whether inclusivity practices improve organization performance. This study therefore sought to establish the influence of supply chain inclusivity on the performance of state corporations in the energy sector. Specifically, the study aimed at determining the influence of discriminatory procurement, stakeholder involvement, supply chain diversity and supply chain integration on performance of state corporations in the energy sector in Kenya. The study adopted a descriptive survey design. The target population for this study was nine (9) State Corporations operating in the Energy sector in Kenya. Due to the limited number of target population, a census approach was adopted. Thus, all the 9 state corporations operating in Energy sector were included. The research purposefully targeted employees in the procurement and finance departments. A total of 20 employees were involved per organization arriving at a total of 180 respondents. A questionnaire was used in collecting data. With the study being quantitative in nature, both descriptive statistics and inferential statistics were employed. The study used SPSS version 26 to facilitate the analysis of data. Inferential data analysis was done using Pearson correlation coefficient and multiple regression analysis method. Data was presented using a combination of statistical techniques and graphical techniques. The study established that jointly, discriminatory procurement, stakeholder involvement, supply chain diversity and supply chain integration influence the performance of state corporations in the energy sector. The study recommends that state corporations should institutionalize procurement plans with a total reservation of at least 30% of the procurement budget to the special groups. The study also recommends that state corporations should authenticate tender awards and purchase orders and enter into agreements with relevant financing institutions with an undertaking that the contracted special enterprises be paid through the account opened with the financier. Consequently, the study recommends that local firms be offered more protection to enable them stand chance against the mega global entities. Further, the study recommends for involvement of citizens, local communities and civil society organizations in the process of purchasing goods and services by the state corporations through provision of input on procurement plans, monitoring procurement processes, and providing feedback on the quality of goods and services purchased. Based on the findings of this study, it is recommended to state corporations that for them to effectively embrace supply chain diversity there is need to access and mitigate any barriers and bottlenecks that may hinder fair treatment, equity and justice in supply chain processes. The study also recommends to state corporations to explore and embrace advanced and emerging technologies in exchange of strategic supply chain information for improvement in the relationship and integration between the supply chain partners. The study further recommends for collaborations within the supply chain to allow firms to partner by combining core competencies and expertise as firms derive more benefits from working together than individual firms can gain on their own.