INFLUENCE OF PROCUREMENT PRACTICES ON PERFOMANCE OF LOGISTICS FIRMS IN KENYA: A CASE OF NAIROBI COUNTY

Abstract

The objective of the study was to assess the influence of procurement practices on the performance of logistic firms in Kenya. Specifically, the study sought to; establish the extent to e-procurement affects the performance of logistic firms in Kenya and to determine the effect of procurement planning on the performance of logistic firms in Kenya. This study adopted a descriptive survey design. The target population for this study was 400 comprising of the procurement manager in each of the logistic firms in Kenya. The study used a sample size of 80 firms and applied simple random sampling methods in generating the sample. The study used a primary data collected using a questionnaire. Statistical package for social sciences (SPSS) computer software for data analysis was used to conduct the data analysis task. The statistics generated included descriptive statistics and inferential statistics. Microsoft excel was used to complement SPSS especially in production of diagrams and tables. The qualitative data generated from open ended questions were categorized in themes in accordance with research objectives and reported in narrative form along with quantitative presentation. A multiple linear regression model was used to test the significance of the influence of the independent variables on the dependent variable. It was notable that there existed a strong positive relationship between the independent variables and dependent variable. The studied variables were very significant therefore needed to be considered in any effort to boost performance of logistics firms in Kenya. Based on the study findings, the study concluded that performance of logistics firms in Kenya was affected by E-procurement and procurement planning were the major factors that mostly affected performance of logistics firms in Kenya. Therefore other factors affecting performance of logistics firms in Kenya needed to be established. These may include the legal framework, contract management and staff competency among others needs further investigation.