Supply Chain Governance and Organizational Performance Among Parastatals in Kenya

Abstract

The impact of supply chain management on economic growth and investment decision of firms has been studied by several scholars around the world. Supply chain accounts for more than 25% of the total demand in most private sectors and over 35% of public sector’s total demand. Despite this, effect of supply chain governance on public organization performance has not been well covered, probably due to their non-profit nature. As a result, this study was intended to determine the effect of supply chain governance among parastatals in Kenya. Its objectives were; to determine the effect of supply chain planning on organization performance, to establish the effect of supply chain and disposal procedure on organisation performance, to evaluate the effect supply chain record management on organisation performance, to analyse effect of supply chain code of ethics on organisation performance and, to determine the effect of market price index on organization performance. The study used an exploratory research design. From a target population of 96 parastatals, a sample size of 77 respondents was arrived at using Yamane formula. Stratified and simple random sampling methods were used to select respondents. Both primary and secondary data was collected and analyzed using multiple regression methods. Significance of regression beta results was assessed at 0.05 level of confidence using F test statistics. The study findings showed that there was significant correlation between supply chain governance and organization performance.