Abstract:
The purpose of the study was to determine the effect of the Public Procurement (PP) Legal Framework implementation on Organizational Performance of state corporations in Kenya. Specifically, the study determined the effect of the implementation of the Public procurement and Disposal Act, (2005); implementation of the Public Procurement and Disposal Regulations, (2006); implementation of the Public Private and Partnership Regulations, (2009); and implementation of the Preference and Reservations Regulations, (2011) on performance of state corporations in Kenya. Cross sectional survey design was adopted with a target population of 187 state corporations. The sample size was 125 and study managed to get respondents from 112 corporations drawn from the five functional categories. Both primary and secondary data were used for analysis. Primary data was obtained from the information in the questionnaires distributed to procurement practitioners and interview guides from the accounting officers whereas secondary data was retrieved from existing reports of the PPOA website. The questionnaire was pilot tested on five entities that helped to improve the instrument while factor analysis was used to extract factors with reliability value of 0.70. Data was analyzed using SPSS. Descriptive and inferential statistics were employed to establish the degree of association among the variables. Ordinary linear squares and multiple regression analysis were used to establish the relationship between the variables. The findings indicated a significant effect of the PP legal framework implementation on organizational performance and enforcement moderated the relationship between study variables. Study recommended effective implementation of PP rules and regulations to improve performance of state corporations. The study's limitation was the population as it only targeted procurement practitioners and Accounting officers of the state corporations. Future studies to widen data coverage involving mainstream government departments and service providers. Future studies may also consider testing the effect of other factors, especially internal and environmental factors, which may affect performance of public entities. Study adds to knowledge in the field of PP by establishing the effect of PP legal framework implementation on performance. Managers will use findings of this study to identify performance drivers in their organizations. Policy makers should focus more on enforcement of the laws to increase implementation and compliance levels.
