Procurement risk management practices and supply chain performance of mobile phone service providers in kenya

Abstract

The study was conducted to establish the relationship between procurement risk management practices and supply chain performance among mobile phone service providers in Kenya. The study had two objectives to achieve: to establish the extent to which mobile phone service providers have implemented procurement risk management practices and to find the relationship between procurement risk management practices and supply chain performance. In order to satisfy the objectives of the study, a survey was conducted in all the four mobile telecommunications companies in Kenya. The research design was a descriptive study. Data was collected using a questionnaire that was administered through drop and pick later method. Means and standard deviation were used to analyze objective one whereas regression analysis was used to analyze the relationship between procurement risk management practices and supply chain performance. The findings were presented in tables, pie charts and bar charts. The study established that most of the mobile phone service providers in Kenya implement procurement risk management practices. It was also clear that there was a very significant relationship between procurement risk management practices and supply chain performance represented by adjusted R2 value of 0.646 which translates to 64.6% variance explained by the ten independent practices of Procurement Risk Management. The study recommended that further research on the same study can be done in other countries to establish whether implementing procurement risk management practices is able to yield the same effect on supply chain performance of mobile phone service providers. The study therefore recommends that all mobile phone service providers in Kenya should endeavor to fully understand the procurement risk management practices in order to drive them to undisputed performance of their supply chains. Procurement risk management practices are very dynamic and keeps on changing hence need to replicate the study in line with trends that may affect supply chain performance in mobile phone companies.