Procurement practices and the performance of parastatals in kenya

Abstract

In today’s dynamic global competitive business environment, technology-based service is no longer an afterthought rather it is a must for public and private organizations. It has become necessary for companies to provide their customers with cost-effective total solution and better customer satisfaction with innovative ideas and methods. Adoption of effective procurement practices is one such approach to gain competitiveness and increase organizational performance. The objective of the study was to establish the Effects of procurement practices on organizational performance of Parastatals in Kenya. The research adopted a descriptive research design. Data was collected using a selfadministered questionnaire that was distributed to 76 senior and middle level managers at the firms. The finding of the study was that procurement is both a driving force to competitive strategy selection and an important resource to achieving improved organizational performance. It was found that if procurement practices are employed effectively, then is expected to improve firm-customer relationship, preserve the environment, motivate and improve the coordination of staff. One limitation of the study is that the researcher measured only the operational side of procurement and considering the early stages of procurement implementation on the organizations. Further research could extend on measuring the strategic level of procurement and analyze the impact of electronic procurement at the strategic level.