FACTORS AFFECTING PROCUREMENT PERFORMANCE OF STATE CORPORATIONS IN MOMBASA COUNTY

Abstract

The study sought to establish the factors affecting procurement performance in state corporations 
in Mombasa County. The study objectives were: to examine the effect of supplier relationship 
management on the procurement performance of state corporations in Kenya, to find out the 
effect of risk management on the procurement performance of state corporations in Kenya, to 
establish the effect of procurement ethics on the procurement performance of state corporations 
in Kenya and find out the effect of procurement leadership on the procurement performance of 
state corporations in Kenya. The study was anchored on various theories namely, the agency 
theory, the institutional theory, the four pillars theory and the public value theory. The study 
adopted a research design descriptive of the survey. The study targeted 5 employees per 
company with the 34 state-owned companies operating in Mombasa County, namely 
Procurement Managers, Procurement Officers, Record Officers, Suppliers and Junior 
Procurement staff. This gave 170 respondents. Using Slovenes formula, the sample size was 
approximated to the 63 respondents. The study targeted a sample of 63 respondents. The 
response rate was considered good and deemed fit for the study. The mean and standard 
deviation for the study variables was calculated based on the responses from the questionnaires. 
Regression and correlation analysis were done using SPSS. The overall mean was calculated by 
getting the average of the means. The study variables were supplier relationship management, 
risk management, procurement ethics, procurement leadership and procurement performance. 
Supplier relationships management was found to correlate positively with procurement 
performance and significant. Increase in supplier relationship management leads to increase in 
procurement performance. Risk Management correlated positively with procurement 
performance and significantly. Increase in risk management leads to an increase in procurement 
performance. Procurement ethics was found to correlate positively with procurement 
performance and significant. This implies increase in procurement ethics leads to an increase in 
procurement performance. Procurement Leadership was found to correlate positively with 
project performance and significant. This implies that increase in procurement leadership leads 
to increase in procurement performance. This study was based in Mombasa County, it will be
prudent to replicate the study in other counties too and compare with the findings. This will 
enable contribution to the body of knowledge on procurement performance of state corporations.