Influence of Supply Chain Management Practices on Performance of Government Ministries in Kenya

Abstract

The objective of the study was to examine the influence of supply chain management practices on performance of government ministries in Kenya. The specific objectives were; to establish the influence of supplier selection practices, supply chain policies, supplier collaboration practices and risk management practices on performance of government ministries in Kenya and to evaluate the moderating effect of organizational culture on the relationship between supply chain management practices and performance of government ministries in Kenya. The study adopted cross sectional study design. The unit of analysis for this study was 20 government ministries with a target population of 1372 staff working in the supply chain management department/units. Stratified random sampling was used, both primary and secondary data were used. The study made use of questionnaires to collect primary data. A pilot test was conducted to test the reliability and validity of the data collection instruments. SPSS software program version 22 was used to facilitate data processing and analysis. Thematic content analysis was used to analyze qualitative data while descriptive and inferential statistics were used to analyze quantitative data. Organizational culture moderating effect was tested by F- test. The study found that supplier selection practices, supply chain policies, supplier collaboration practices and risk management practices positively and significantly influence the performance of government ministries in Kenya with risk management practices being the most significant predictor, this study further established that organization culture was a moderating factor in the study. The study adopted resource based theory, coordination theory and system theory. The study found that there was a positive association between supply chain management practices and performance of government ministries. The findings also revealed that supply chain management practices can explain 96.4% of performance while the introduction of organization culture in the model increased the r- squared to 98% meaning the model is a good fit. The study recommends new policies should be formulated to ensure suppliers have compatible information system with public institutions and policy to enhance frequent identification of potential risks in supply chain and on-sight investigation of existing risk in addition to considering the provision of after sales service and also come up with training programs to help suppliers improve the quality of their products.