PROCUREMENT PLANNING PRACTICES AND PERFORMANCE OF COMMERCIAL STATE CORPORATIONS IN NAIROBI CITY COUNTY, KENYA

Abstract

This study investigated the effect of procurement planning on performance of commercial state corporations in Nairobi City County, Kenya. The study variables were anchored on Institutional Theory, Resource Based View Theory, Agency Theory and Partnership Theory. The study utilised descriptive and explanatory research design. The target population consisted of five (5) commercial state corporations were the respondents were selected from four core department in each of the five state corporations. The total respondents were 153, where a census was used. Cronbach Alpha score was used to test reliability where all construct had a score greater than a threshold of 0.7. Data was analysed using quantitative and qualitative methods. Data was presented in tables and charts. The study found that procurement need identification had significant and positive effect on organizational performances of commercial state corporations in Nairobi City County. The regression results revealed statistically significant positive linear relationship between procurement need specification and performance of commercial state corporations. The study concluded that there was positive correlation between budget cost & estimates and organizational performance. The regression results revealed statistically insignificant linear relationship between procurement methods and performance of commercial state corporations in Nairobi City County, Kenya. The study recommended that State Corporations in Kenya need to implement a Procurement Process any time the public entity want to buy items from external suppliers. By using this Procurement Management Process, State Corporations ensure that the items provided meet Organisation needs need. It also helps State Corporations manage the supplier relationship, ensuring that any issues are resolved quickly. By implementing a Procurement Process, State Corporations ensure get the maximum value from your supplier relationship. Key Words: Procurement, Need Identification, Need Specification, Budget CITATION : Munene, C. W., & Gachengo, L. W. (2023). Procurement planning practices and performance of commercial state corporations in Nairobi City County, Kenya. The Strategic Journal of Business & Change Management, 10 (4), 882 – 901. http://dx.doi.org/10.61426/sjbcm.v10i4.2793