Best procurement practices and procurement performance of SMEs in Nairobi County, Kenya

Abstract

Purpose: This paper analyses the procurement practices and performance of SMEs in Nairobi County, Kenya. To accomplish this,  the  study  set  out  two specific objectives  which included: (i) To establish the  extent to  which procurement best practices are  adopted  by  SMEs  in  Nairobi  County and  (ii)  To determine the relationship between procurement best practices and  procurement performance  of SMEs in  Nairobi  County. 

Design/ Methodology/Approach: The study adopted a  descriptive research design of a cross sectional type approach and sampled forty-five (45) SMEs out of the total number of four  hundred  and  ffty (450) SMEs in Nairobi  operating  in CBD  through  random sampling method to take part in the research. Linear regression was used to draw inferences. 

Findings: Regression  analysis  findings revealed that procurement   best practices has a positive  effect on procurement performance with all the independent variables (Green Purchasing, Supplier Partnering, Adoption of Information Technology and Purchasing Ethics) hence all these variables had a statistically significant effect on procurement performance.

Contribution to policy and practice: The study recommends that procurement management of SMEs in Kenya to ensure that there is an appropriate focus on procurement best practices in order to meet long term procurement performance in SME’s.

Originality/Value: The study contributes to the academic understanding of how procurement practices might improve or hinder procurement effectiveness. As such, the present research may assist scholars to move beyond a simple dyadic context and toward examining complete supply networks.