The Intervening Effect of Planning Function of Management in the Relationship between International Procurement Practices and Supply Chain Performance of Energy Development Agencies in Kenya
During the procurement planning process, the procurement method is assigned and the expectations for fulfillment of procurement requirements determined. The planning function of management entails a set goals and targets that aim to transform and improve the image of the public service through quality delivery of services. This study sought to establish the intervening effect of planning function of management in the relationship between international procurement practices and supply chain performance of energy development agencies in Kenya. Positivistic philosophy approach was adopted for the study. The study adopted a cross-sectional survey research design with an aim of collecting large number of quantitative data at a point in time to establish patterns of value addition in the Kenyan energy sector. The study’s target population consisted of six energy development agencies in Kenya as outlined by the Ministry of energy (2018). The unit of analysis was top and middle managers. The study purposely sampled only the top managers and middle managers since they are the key individuals handling the strategic issues within the departments. This study utilized both primary and secondary data. Primary data was obtained using self-administered questionnaires. The questionnaire was made up of closed questions relating to the study’s objectives. Secondary data was collected from energy sector reports and was gathered from internal management reports, organizational annual reports and various research related organizations. Quantitative data was analyzed using Statistical Package for Social Sciences (SPSS). The established a partial mediation effect on the mediating role of planning function of management on the relationship between international procurement practices and supply chain performance. The study thus rejected the null hypothesis and adopted the alternative hypothesis that there is a significant intervening effect of planning function of management in the relationship between international procurement practices and supply chain performance of energy development agencies in Kenya. The study concluded that there is a significant intervening effect of planning function of management in the relationship between international procurement practices and supply chain performance of energy development agencies in Kenya. The study also found that from the responses, the agencies had adopted well laid out strategic plans that are well planned and management organizes all the required resources for optimal supply chain performance. The management had stipulated a clear vision, mission and strategic goals and is effective in directing the agency towards achieving its vision and mission. The study also recommended that measures should be put in place to ensure that only exact quantities of materials are procured and in a way that minimizes their overall cost of supply chain. Effective use of e-procurement technologies should be highly encouraged to achieve this. To improve the supply chain performance more, the study recommended that the supply chain managers should be holding regular supplier appraisals and meetings to know the areas of improvement on the part of the suppliers. Specific e-procurement implementation key performance indicators should also be defined and closely monitored since this will lead to improvement in supply chain performance.
Keywords: Planning Function of Management, International Procurement Practices, Supply Chain Performance, Energy Development Agencies & Kenya.
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