The effect of Supplier Relationship on Procurement Performance of Public Universities in Nairobi County

Authors

  • Mark Mejooli
    Jomo Kenyatta University of Agriculture and Technology
  • Anaya Senelwa
    Lecturer, Jomo Kenyatta University of Agriculture and Technology

Abstract

Purpose: The study's main purpose was to determine the effect of supplier relationship and procurement performance of public universities in Nairobi County. The study was anchored on social exchange theory (SET), Transaction Cost Theory (TCT), Principal-Agent Theory and Resource Dependence Theory.


Material/methods: Target population were 73 employees in supply/procurement departments drawn from three public universities within Nairobi County. The study employed cross-sectional research design. The research employed the census technique. A 5-point likert scale questionnaire was used to collected data. Reliability of the questionnaire the study adopted Crobanch Alpha value. Data collected was an analyzed using descriptive and inferential statistics.


Findings: The findings revealed that information sharing and management cooperation had a positive and significant influence on procurement performance of public universities in Nairobi County.


Conclusions/recommendation: The study recommended that institutions have regular information sharing with their suppliers. Finally, the institutions should ensure that suppliers have some level of bargaining power whereas the suppliers need to ensure that the institutions’ profits are realized from procurement cost savings.