Public Procurement Practices and Sustainable Performance of State Corporations in Kenya

Abstract

In recent years there has been growing global pressure on all public procuring entities to improve sustainable performance through procurement practices. The main aim of this study was to assess the effect of public procurement practices on sustainable performance of state corporations in Kenya. The specific objectives of this study were procurement methods, procurement contract management, preferences and reservation in procurement and inventory management. The study was guided by tendering theory, theory of public contracts, public value theory, inventory control theory, theory of regulatory compliance and triple bottom line model. The study employed mixed methods research design to help in collecting both qualitative and quantitative data. This study was anchored on positivist Philosophy. The target population included all 187 registered state corporations in Kenya and the sampling frame consisted employees working in all 187 state corporations in Kenya. The study employed purposive sampling technique in selecting the sample size, the head of finance and the procurement function in 187 state corporations which formed 374 respondents. The study collected both primary and secondary data. Primary data was the main data for the study which was collected using a questionnaire. Secondary data was collected using a secondary data collection template and it was obtained from existing state corporations performance reports. Pilot testing was carried out to establish the data collection instrument's reliability and validity. Descriptive statistics was used to summarize and organize characteristics of a data set collected which was presented in form of means and standard deviations. The results showed that public procurement practices influence sustainable performance of state corporations in Kenya. Diagnostic tests were carried out to ascertain that the dataset met the assumptions of the regression model which included; multicollinearity test, linearity test, autocorrelation test, heteroscedasticity test and normality test. Correlation analysis was carried out to assess the existence of a relationship public procurement practices and sustainable performance. A regression analysis using multiple linear regression model was used to test the research hypotheses. Qualitative data was analyzed using content analysis. The analyzed data was presented in form of tables, graphs, histograms and Pie charts. The study findings revealed that procurement methods, procurement contract management, preferences and reservation in procurement and inventory management combined positively and significantly influenced sustainable performance of state corporations in Kenya. The moderating variable, public procurement regulatory bodies was found to have a moderating influence on the relationship between public procurement practices and sustainable performance of state corporations in Kenya. It was concluded that through proper implementation of public procurement practices such as procurement methods, procurement contract management, preferences and reservation in procurement and inventory management, the sustainable performance of state corporations in Kenya is positively affected. The study recommended that the management of the state corporations ought to ensure effective implementation of public procurement practices so as to improve their sustainable performance. Public procurement regulatory bodies should put more emphasis on enforcing the implementation of the public procurement practices to ensure adherence by all public procuring entities. The study assists policy makers in coming up with better policies on proper implementation of public procurement practices. This study was based on state corporations in Kenya and there is need to undertake similar studies in county governments, ministries and other institutions governed by public procurement regulatory framework to uncover underlying relationship between public procurement practices and sustainable performance.