INFLUENCE OF PURCHASING MANAGEMENT PRACTICES ON PERFORMANCE OF COMMERCIAL BANKS IN NAIROBI COUNTY, KENYA
Abstract
The general objective of the study was to examine the influence of purchasing management practices on performance of commercial banks in Nairobi County, Kenya. The study adopted a descriptive research design and was conducted in the commercial banks in Kenya and the 86 respondents were used to provide pertinent information about the research problem. It was notable that there existed a strong positive relationship between the independent variables and dependent variable. The coefficient of determination explained the extent to which changes in the dependent variable was explained by the change in the independent variables or the percentage of variation in the dependent variable and the four independent variables that were studied explained of the performance of commercial banks. This implied that these variables were very significant therefore needed to be considered in any effort to boost performance of commercial banks in Kenya. The study recommended that commercial banks should have adequate supplier base which is important to improve performance of its suppliers. The commercial banks should be concerned with the supplier credit terms to enhance service delivery. The commercial banks should strive to make timely dispute resolution with suppliers to enhance service delivery. There is need for the organizations to ensure that the procured goods match demand and supply. Technical expertise which is the base for strategic sourcing should be adequate to enhance service delivery. Sourcing functions should have active interaction with the other functions to enhance matching demand and supply improves cost of reduction. There is need for the organizations to ensure that there is adequate IT infrastructure, adequate level of automation for the procurement staff in the organization. This will facilitate procurement functions such as E-procurement to reduce procurement costs and enhance procurement usage to improve service delivery.
Key Words: Supplier Relationship Management, Strategic Sourcing, ICT Integration, Purchase Control, Purchasing Management
CITATION: Mwangi, L. N., & Moronge, M. (2019). Influence of purchasing management practices on performance of commercial banks in Nairobi County, Kenya. The Strategic Journal of Business & Change Management, 6 (2), 387 – 403.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1120
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