SUPPLIER SELECTION CRITERIA AND PROCUREMENT PERFORMANCE OF GOVERNMENTAL PARASTATALS IN THE LAKE REGION, KENYA
Abstract
This study determined the effect of supplier selection on the procurement performance of government parastatals in the Lake Region. The study used a descriptive research design and the target population was the three government parastatals in the Lake Region of Migori, Kisumu, Homabay, and Siaya Counties. The study collected data using questionnaires which had five sections with section one seeking to collect information on the respondents’ biodata while the subsequent sections collected data based on the study objectives. The findings were presented in tables, charts, and figures. The study found that most government parastatals evaluated the suppliers based on quality commitment including quality standards, quality inspections, and quality control techniques. The supplier quality commitment exhibited a positive and significant influence on the procurement performance of the government parastatals. A majority of the government parastatals employed financial capacity criteria in the evaluation of their suppliers which included: the ability to pay off short-term debt obligations and, the ability to convert assets to cash among others. The supplier's financial capacity had a direct influence on the procurement performance of the government parastatals. The organizations evaluated their suppliers based on their technical capabilities, such as labor force skills, etc. According to the results, the supplier's technical capability had a positive and significant effect on the procurement of the government parastatals. Finally, most government parastatals used supplier capacity criteria to evaluate their suppliers. The study thus recommends that the management of the government parastatals should employ more supplier quality commitment during the supplier evaluation process. Further, the government parastatals should employ more of the financial capacity aspects in the evaluation of the suppliers to achieve more procurement performance in the government parastatals in Kenya. The study recommends that the management of the government parastatals should employ more of the technical capabilities to enhance the procurement performance of the government parastatals in Kenya. The management of government parastatals should more of the supplier capacity aspects in the evaluation process to enhance the procurement performance of the organizations.
Keywords: Supplies Selection, Criteria, Procurement Performance
CITATION: Awuor, W. O., &Namusonge, E. (2024). Supplier selection criteria and procurement performance of governmental parastatals in the Lake Region, Kenya. The Strategic Journal of Business & Change Management, 11 (2), 1152 – 1161. http://dx.doi.org/10.61426/sjbcm.v11i2.2975
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i2.2975
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