Effect of International Organization for Standardization 9001:2008 Processes on Performance of Supply Chain Departments of Government Ministries in Kenya

Abstract

Since 2010, ISO 9001:2008 certification has become part of the performance management framework by the Government of Kenya to enhance realization of quality service provision within the public sector. Currently, 114 Ministries, Departments and Agencies (MDAs) have been certified. There should be interest as to the full effect of this certification on the performance of these MDAs. The study, focusing on Supply Chain Departments therefore purposed to investigate the effect of the ISO 9001:2008 dimensions on the performance of the certified Ministries. It was informed not just by the high cost of the certification process but also lack of empirical evidence as to the effect of this certification on performance of the Supply Chain Departments in the MDAs considering that various reports had indicated that public sector performance is still unsatisfactory. The Supply Chain Departments being a central component in sourcing, purchasing and distribution of public service goods presented an opportunity for the researcher to interrogate the effect of this ISO 9001:2008 certification in enhancing performance in these organizations. Using the ISO 9001:2008 process approach multidimensional constructs of Management Responsibility, Resource Management, Measurement, Analysis and Improvement and Product Realization as the independent variables, the researcher established empirically the extent to which these dimensions affect Performance of the Supply Chain Departments at the Ministries’ Headquarters in Nairobi. The researcher also analysed the moderating effect of Government Procurement Policies and Regulations and its effect on both the independent, dependent variables and joint effects on the independent variables of the study. With a target population of 21 Government Ministries comprising 563 employees, and driven by a positivism research philosophy, the study was conducted through a descriptive research design that was randomized quasi experimental to analyze the pre and post certification conditions in which the influence of the independent variables and moderating variable were measured against the performance of these SCM departments in GOK Ministries. Using the purposive and systematic random sampling techniques, 224 members of staff and management from these Ministry Headquarters were sampled. Data was collected through questionnaires and observations after a pilot study representing 8% of the sample in four similar departments had been conducted and adjustments on the tools done. The Statistical Package for Social Scientists, Version 7.0 software was used to sort, code and analyze the data. Inferential data analysis was done using correlation analysis. Regression models were constructed using multiple regression analysis and hypothesis testing done using ANOVA. The findings were presented in tables, graphs and literal descriptions. The findings indicated that indeed Management Responsibility Processes, Measurement, Improvement and Analysis Processes and Product Realization Processes all had a p<0.05 hence have a statistically significant effect on performance of SCM departments, and Resource Management Processes had a p=0.402 hence having no effect on performance, while the moderating variable Government Procurement Regulations and Policies had p>0.05 when interacted with MRP, RMP, MAIP and PRP respectively, and hence was found not to have a statistically significant effect on the performance of these departments. The study concluded that three of the ISO 9001:2008 processes, Management Responsibility Processes, Measurement, Improvement and Analysis Processes and Product Realization Processes had a positive and significant effect on performance of Supply Chain Departments in Ministries while the Government Procurement Policies and Regulations do not have a significant moderating effect on the performance of the ISO dimensions. Therefore the study recommends that the Principal Secretaries of the various Ministries put emphasis on ISO Management Responsibility Processes through Performance Contracting, emphasise on Resources Management Processes that enhance productivity, enhancement of Measurement, Analysis & Improvement and the adoption of uniform Product Realization processes for the improved performance of the departments. The researcher recommends that more research on Government Procurement Policies and Regulations needs to be done to inform more appropriate policy guidelines and finally the independent variables within different geographical spaces particularly in the Counties’ SCM departments operating within the ISO 9001:2008 quality framework equally needs further investigation.