Factors affecting procurement lead-time and operational performance in state owned financial institutions in Kenya

Abstract

The objective of the study was to establish the factors affecting procurement lead-time and operational performance in state owned financial institutions in Kenya. The research adopted a descriptive research design where data was collected using a self-administered questionnaire that was distributed to 55 senior and middle level managers at the organization researched on. The results show that that inadequate financing to the firm’s procurement process, staff capacity to effect procurement and stringent public procurement procedures were found to be an impediment to successful management of the procurement process. In addition, a lack of adequate enforcement of ethical code of contact by staff and other actors in the supply chain was found to delay the processing of tenders and the eventual delivery of the products or services. The limitation of the study was that it did not account for certain behavioral factors – related to employees’ and managers’ characteristics, attitudes, and experience levels – as well as organizational factors – such as structure, size, and business nature – that play a moderating role in the relationships highlighted in this study. The recommendation of the study was that senior management must consider their internal procurement processes, and their own role in championing efficient procurement in their organizations. There is need to increase the funding process of the organization towards the lead time management. The government has a role to play in ensuring successful enforcement of all procurement laws since the problem is not a lack of the laws but the circumventing of the laws by the parties for their own selfish gains.