An empirical investigation of influence of procurement governance on procurement performance of SMEs in Nairobi, Kenya

Abstract

Purpose: This paper analyzed the influence procurement governance on procurement performance of SMEs in Nairobi Central Business District, Kenya. To accomplish the objective, the study set out five   specific objectives which included; determining the effect of Procurement planning, procurement and disposal procedures, procurement record management, procurement code of ethics and complaints review mechanism on procurement performance of   SMEs in Nairobi CBD.    

 Design/ Methodology/Approach: The study adopted a descriptive research design of a cross sectional type approach and sampled forty (40) SMEs out of the total number of four hundred (400) SMEs in Nairobi CBD through   random   sampling   to   take   part in the research. Correlation and regression analysis results were generated using SPSS (version 2).      

Findings: Regression analysis revealed that Procurement   governance has a positive effect on Procurement performance with all the variables (Procurement planning, Procurement Disposal procedures, Procurement Record management, Procurement Code   of ethics, Complaints Review mechanism) hence all these variables   have a statistically significant effect on Procurement performance.

Contribution to policy and practice: The study recommends all SMEs in Nairobi CBD to adopt Procurement governance practices such as Procurement planning, Procurement Disposal procedures, Procurement Record management, Procurement Code  of ethics   and   Complaints Review mechanism

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.