Performance of Procurement Methods and Practices in Faith – Based Organizations in Kenya
- September 1, 2020
- Posted by: RSIS
- Categories: IJRSI, Management
International Journal of Research and Scientific Innovation (IJRSI) | Volume VII, Issue VIII, August 2020 | ISSN 2321–2705
Performance of Procurement Methods and Practices in Faith – Based Organizations in Kenya
Nomelif Kemei, Oyaro Jackson Ong’eta, Biru Sara and Omondi Richard Mc’Otieno
Department of Management, School of Business, University of Eastern Africa, Baraton, P.O. Box 2500 – 30100 Eldoret, Kenya
Abstract: Faith – based organizations in Kenya have grown in terms of their operations and systems. This growth has necessitated the establishment of various strategic business units aimed at improving their performance and productivity. One of the key strategic business units that has been adopted by most of these organizations is the procurement units. The procurement function is considered as one of the key functional areas of any organization. This is due to its strategic position in enhancing the performance of the organization both in terms of improving their financial performance as well as managing the quality of service and products by the organizations. This study by adopting the descriptive research design and involving procurement staff and committee members from 18 institutions, and by using self – constructed survey questionnaire aimed at evaluating the performance effectiveness of the procurement methods and practices as used in the faith-based organizations in Kenya by addressing the following research questions: What is the place of procurement in the operations of the organizations?; What are the procurement methods used in the organizations under the category of Competitive methods and Non-competitive methods; What is the level of effectiveness of the procurement practices used in the organizations based on Costs of procurement, Quality of procurement and Risk mitigation ability; Is there a significant relationship between the place of procurement in the organization and the level of effectiveness of procurement practices and Is there a significant relationship between the assessment of the relationship between the organization and its suppliers and the place of procurement in the organization and the level of effectiveness of procurement practices. Descriptive statistical tools including frequencies, percentages, means and standard deviations were used to analyze the data. Additionally, Pearson product-moment correlation coefficient was used in testing the null hypothesis. The study established that procurement is well placed, competitive procurement methods are mostly used compared to the non-competitive methods. There was a significant positive and moderate relationship between place of procurement in the organization and the level of effectiveness of procurement practices (r = 0.309; P = 0.012<0.05) and the self-assessment of the relationship between the organization and its suppliers (r = 0.355; P = 0.004<0.05). The study concludes that competitive procurement methods are mostly used as compared to the non-competitive methods, the institution have procurement practices that are cost effective, high quality and effective in risk mitigation.
Key words: procurement methods; procurement practices; faith – based organizations; performance; procurement cost; procurement quality
