Strategic Procurement Practices and Performance of Investment Firms Listed in Nairobi Securities Exchange, Kenya

Abstract

The overall goal of the proposed study was to lay out the impact of key obtainment rehearses on acquisition execution of venture companies recorded in the NSE, Kenya. The specific objectives were to investigate how investment firms listed on the NSE’s procurement performance is affected by strategic supplier relationship practice; to determine how strategic contract management practices affect investment firms listed on the NSE procurement performance; To determine the impact of strategic sourcing on the procurement performance of NSE-listed investment firms in Kenya and; to ascertain how the practice of strategic negotiation affects investment procurement performance firms listed in the NSE, Kenya. This research problem was studied through the use of a cross-sectional research design. The units of observation constituted the 104 top and middle management staff working in the offices of investment firms listed in the NSE. This study used Yamane’s method to understand the sample size. Following this sample determination formula, the calculation generated a sample of 83 respondents from which the study sought information from. This study utilized both primary and secondary data sources. Primary data was gathered using research questionnaire as the research instrument. To complement the primary data, secondary data collection sheet was employed in collecting the secondary data from audited reports of the Company, NSE and other reliable sources. The researcher dropped the questionnaires physically through face-to-face method requesting them to fill them promptly and pick them up once filled up. The structured questions were used in an effort to conserve time and money as well as to facilitate in easier analysis as they are in immediate usable form; while the unstructured questions were used so as to encourage the respondent to give an in-depth and felt response without feeling held back in revealing of any information. Before processing the responses, the completed questionnaires were edited for completeness and consistency. The raw primary data collected was coded prior to being input into SPSS statistical analysis software. Once coded, the data was then cleaned to ensure accuracy and completeness of the information obtained. The data collected was both quantitative and qualitative and it was analyzed descriptively and inferentially. In addition, correlation analysis was conducted to the indicated the nature (positive or negative) and significance of the relationships between the variables in the study. Regression analysis was used to test the direction and magnitude of the relationship between the study variables. The study found that strategic supplier relationship affects procurement performance of investment firms listed in the NSE to a great extent. Utilization of strategic contract management practice was found to affect the procurement performance of the investment firms to a great extent. The study found that strategic sourcing practice affects the procurement performance of investment firms to a great extent. Strategic negotiation practice affects procurement performance to a moderate extent.It is imperative that Investment firms listed in the NSE reviews their existing procurement systems in order to identify the weak points and fasten them. Investment firms listed in the NSE should adopt customer orientation and then implement customer integration in order to receive a high level of procurement performance. Investment firms listed in the NSE should try as much as possible to tailor make their processes to best suit their unique needs.