Supply Chain Performance of Energy Development Agencies in Kenya

Supply Chain Performance of Energy Development Agencies in Kenya

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Author: Dr. Solomon Kyalo Mutangili.

Publisher: Stratford Publishers.

Year of Publication: 2020.

Pages: 159.

Reviewed by: Stratford Peer Reviewed Journal & Book Publishing.
To get a copy of this book: Contact Stratford Publishers
Email: info@stratfordjournals.org

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Description

Kenya has regularly experienced frequent breaks in the supply of energy products over the years despite the state spending about Kshs. 234 billion per year in the energy sector. This study contributes to the body of knowledge by establishing the relationship between international procurement practices and supply chain performance of energy development agencies in Kenya, as well as shedding light on the intervening role of planning function of  management and moderating influence of regulatory framework on this relationship. The general objective was to establish the influence of international procurement practices, planning function of management and regulatory framework on supply chain performance of energy development agencies in Kenya. The study’s theoretical review was based on five theories that were relevant to international procurement practices and supply chain performance. These theories include: coordination theory, social network approach theory, the classical management theory, contract theory and bullwhip theory. The study was underpinned by coordination theory and social network
approach theory. The study adopted a cross-sectional survey research design aimed at collecting large number of quantitative data at a point in time so as 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 (2019). These agencies include: Rural Electrification and Renewable Energy Corporation (REREC), Geothermal Development Company (GDC), Kenya Electricity Transmission Company (KETRACO), Kenya Generation Company (KENGEN) and Kenya Power, Lighting Company (KPLC) and Nuclear Power and Energy Agency (NUPEA). The study’s respondents were drawn from all the 224 top and middle level managers from the energy development agencies. Yamane formula was used to obtain a sample size of 144. The study used stratified random sampling
to pick the 144 respondents. Primary data was obtained using self-administered questionnaires. The questionnaire was made up of closed questions relating to the study’s objectives. Descriptive statistics such as percentages, frequencies, mean and standard deviation were used for the quantitative data and information presented in form of tables and graphs. Inferential data analysis was done using Pearson correlation coefficient and regression analysis. A pilot was used to ascertain the validity and reliability of the research instrument. The Cronbach Alpha values were all above 0.7 indicating reliability of the research instrument. The study found that there was significant relationship between international procurement practices and supply chain performance of energy development agencies in Kenya. There was a partial intervening effect of planning function of management in the relationship between
international procurement practices and supply chain performance. There was a significant moderating effect of regulatory framework in the relationship between international procurement practices and supply chain performance of energy development agencies in Kenya. Lastly, the joint intervening effect of planning function of management and moderating effect of regulatory framework on the relationship between international procurement practices and the supply chain performance is significantly different from their separate effect. The study recommended that the management of energy corporations should put measures in place to ensure that all the drawn ethical policies and codes are adhered to by all the supply chain staff as well as by the suppliers that they deal with. For the best supply chain performance in the energy corporations, the management should adopt modern technology in its everyday dealings. In addition, it was recommended that the firms should strive to be cost efficient as they also ensure that they uphold quality during the procurement process. Lastly, the study recommended that all the
state corporations should focus on supplier relationship management by understanding the suppliers’ business positions.

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