By Nyaga, R. and Kagwe, J.

Public service reform is concerned with improving public sector results by identifying sustainable improvements to the public sector results chain (World Bank, 2012). It is a deliberate plan to change public bureaucracies through innovation (Africa Development Bank, 2005). One of the ways governments are attempting to efficiently render quality public services is through the implementation of Supply Chain Management (SCM) best practices (Essig & Dorobek, 2006).

Supply Chain (SC) innovation refers to the tools that can improve organizational processes needed for effective SCM through seamless interactions with suppliers, manufacturers, distributors and customers (Lin, 2008). It involves the use of new SCM technologies, a high level of SC collaboration, the attraction, development, and retention of supply management talent, and SC effectiveness on cost, quality, and responsiveness (Soon and Udin, 2011; Lysons et al., 2006; Trott, 2008).

The study conceptual framework relied on the premise that the reforms adopted in the public sector trigger SC innovativeness which leads to supply chain excellence thus creating a competitive advantage (Handfield et al., 2009).

The study is based on both the Resource Based View (RBV) and the Dynamic Capabilities Perspective. Dynamic capabilities are defined as a firm’s ability to integrate, build, and reconfigure internal and external competencies to address rapidly changing environments in order to become more effective (Treece, 2007).

There is a general consensus among scholars that innovation improves SC efficiency which in turn improves performance (Porter, 1990; Herzlinger, 2006; Chapman et al., 2003; Lockamy, Beal and Smith, 2000; Janda and Seshandri, 2001; Harrison and New, 2002). However, effective public SCM is still a challenge in Africa (Migiro et al., 2008).

Although several studies have been carried out regarding the impact of the reforms on the performance of state corporations in Kenya (Kipyego, 2011 and Mwaniki, 2010), more research was required on their impact on the SCs of these corporations.

The study therefore sought to answer the following main question: Are the reforms triggering SC innovation among state corporations in Kenya?

A descriptive research design was undertaken by means of a census survey where all the elements were approached to participate in the study.

The study involved primary data collected by use of a self-administered questionnaire, with only one respondent in each of the 94 state corporations.

The questionnaire was both quantitative and qualitative.

The quantitative data was analyzed by use of frequency tables, mode and mean and the objective of the research was established by use of a simple regression model of the form y=a+bx.

The qualitative data was analyzed through deduction.

The study came up with the following main conclusions. Firstly, public service reforms have a great impact on the implementation of SC innovation amongst state corporations in Kenya. They are leading to the use of new SCM technologies, increased levels of SC collaboration, the attraction, development and retention of supply management talent, and SC effectiveness on cost, quality and responsiveness.

Secondly, although the reforms are having a great effect on SC innovation in most of the state corporations, the positive effects felt are however not only dependent on the number of reforms the state corporations implement but more on how well the reforms are being implemented.

Thirdly, Performance Contracting, ISO Certification, and Values and Ethics are the reforms that have the most impact on SC innovation among state corporations. This could be due to the fact that they are the most implemented reforms. SC managers should therefore focus on ensuring that the targets set out in their performance contracts lead to improved SC innovation.