INTERNATIONAL JOURNAL OF ACADEMICS & RESEARCH (IJARKE) · 2019-09-23 · growing new courses to supply, growing new item in the market. ... 1.1. Profile of Kenya Ports Authority

INTERNATIONAL JOURNALS OF ACADEMICS & RESEARCH ISSN: 2617-4138 IJARKE Business & Management Journal DOI: 10.32898/ibmj.01/2.1article16

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155 IJARKE PEER REVIEWED JOURNAL Vol. 2, Issue 1 Aug. – Oct. 2019

Effects of Supplier Development on Procurement Performance of Kenya

Ports Authority

Eunice Daisy Kibwana, Jomo Kenyatta University of Agriculture & Technology, Kenya

Dr. Stanley Kavale, Jomo Kenyatta University of Agriculture & Technology, Kenya

1. Introduction

The provider advancement logic started from the Japanese car industry after the World War Two. As indicated by Sako

(2013), addresses, classes and instructional classes for Toyota Motor Corporation representatives were made accessible to center

provider workers as right on time as the 1950s. Provider advancement later spread and picked up root in the European and North

American car businesses during the 1980s (Handfield, Krause, Scannell and Monczka, 2015). The training was consequently

grasped by North American assembling firms outside the car business, for example, John Deere, Motorola, Harley-Davidson,

Digital Equipment Corporation and Marks and Spencer (Wagner, 2016).

Provider advancement is characterized as any exertion by a purchasing firm to expand the execution and abilities of their

provider. It is the way toward working cooperatively with providers to improve or extend their capacities (Dominick, 2014). It is a

reciprocal exertion by both the purchasing and providing association to together improve the provider's execution or abilities in at

least one of the accompanying zones: cost, quality, conveyance leads time, innovative headway, security and natural obligation,

administrative capacity and money related feasibility (Krause, Handfield, and Tyler, 2017). It is the way toward having the

purchasing association work straightforwardly with specific providers to improve their execution to help the purchasing

association. There are different goals which purchasing associations look to achieve in their provider advancement undertaking.

These may incorporate; improving provider execution, lessening item costs, decreasing lead-times, settling genuine quality issues,

growing new courses to supply, growing new item in the market. Before embraced provider improvement on any provider, the

obtaining experts in charge of the venture must choose the perfect provider for advancement dependent on their present limit

INTERNATIONAL JOURNALS OF ACADEMICS & RESEARCH (IJARKE Business & Management Journal)

Abstract

There are different destinations which purchasing associations try to achieve in their provider improvement undertaking.

These may incorporate; improving provider execution, decreasing item costs, lessening lead-times, settling genuine quality

issues, growing new courses to supply, growing new item in the market. Before attempted provider improvement on any

provider, the acquiring experts in charge of the task must choose the perfect provider for advancement dependent on their

present limit contrasted with perfect capacity, their collaboration with purchasing association, item or administration provided

nature and extent of improvement required. The investigation tries to analyze the impact of provider advancement on

obtainment execution of Kenya Ports Authority. The study was guided by both general and explicit destinations. The

particular targets are to inspect the impact of provider organization on obtainment execution of Kenya Ports Authority; to

decide the impact of provider financing on acquisition execution of Kenya Ports Authority and to decide the impact of

provider preparing on acquirement execution of Kenya Ports Authority. Also, to look at the impact of provider assessment on

obtainment execution of Kenya Ports Authority. This reinforce the calculated system the examination utilized hypotheses such

as network theory of supply chain management, social learning theory and resource-based view theory. The examination

targets 1238 staff of Kenya Ports Authority in acquirement and client offices and the example size was 302. The study results

revealed that supplier partnership was critical for the enhancement of procurement performance of Kenya Ports Authority. On

supplier financing the study established that finances played a key role in securing materials and services for supply to Kenya

ports Authority. On supplier training and auditing the study established that training enabled suppliers to be aware of

tendering processes and supplier auditing helped to vet out ghost or briefcase suppliers from doing legitimate business with

Kenya Ports Authority. The study concluded that supplier partnership and supplier training have a significant effect on

procurement performance and that supplier financing and supplier audit have no significant effect on procurement

performance at Kenya Ports Authority. The study recommended that That Kenya Ports Authority should enter into

procurement strategic partnerships with suppliers; That Kenya Ports Authority should carry out a needs assessment on what do

suppliers want; That Kenya Ports Authority should carry out training programmes for suppliers and even finance staff to

further their studies in procurement in local universities; That Kenya Ports Authority should open the scope for auditing of

suppliers so as to bring in as many suppliers as possible.

Key words: Supplier Partnership, Supplier Financing, Supplier Training and Supplier Auditing


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contrasted with perfect capacity, their participation with purchasing association, item or administration provided nature and extent

of advancement required.

Gonzalez and Quesada (2014) properly called attention to that provider improvement is the most powerful administration

process for accomplishing item quality and consumer loyalty. To accomplish this target, firms should put more accentuation on

their capacity to make and upgrade its very own ability in a deliberately significant angle, for example, provider advancement.

The achievement of any organization today lies not just in the administration of its associations with its clients, yet additionally

remembering a more extensive reference bunch in the store network including its providers.

In the present day, provider advancement is generally rehearsed in Japanese, North American and European organizations.

Honda and Nissan, for instance, have built up provider improvement projects and groups (Handfield, et al., 2015). The take-up of

provider improvement changes especially crosswise over various businesses. In Europe, as affirmed by an expansive scale

overview of mechanical firms from Germany, Switzerland and Austria, it is progressively predominant in get together ventures

such car, hardware, development, and metal/manufactured metal businesses than it is all the while and essential enterprises

(Wagner, 2016).

Provincially provider improvement has likewise been embraced in spite of the fact that at a moderate rate. Angola is renowned

as an extraordinary case of a fruitful industry wide provider improvement activity. In the South African setting, provider

advancement accomplishes high Preferential Procurement focuses, by guaranteeing the improvement of competent providers in

key zones and is likewise supported by independent focuses for big business improvement. The division of open ventures started a

CSDP (Competitive Supplier Development Program) program to improve national provider industry aggressiveness. The

Department of Public Enterprises through SOEs (State possessed undertakings) targets financial development through framework

venture. In Kenya, the dimension of provider improvement has not been sure about association and collective premise. Misoi and

Nyoro (2015) saw this has been on the grounds that the production network framework in has dependably been erratically done.

Each individual from the production network seeks after their own cost decrease and benefit thought processes to the detriment of

one another. This has seen the unending deficiencies of items, spiraling costs, poor stock taking care of and the board prompting

low quality items and staggering expenses along the production network.

In Kenya, Public acquirement takes up about 13% of GDP (The Organization for Economic Corporation Development, 2001).

In the year 2018/19, the Government of Kenya will spend about 70% of the 3 Trillion Shillings spending plan on acquirement of

products and enterprises. 30% of all administration acquisition adding up to roughly 900 Billion Shillings is held for ladies, youth,

people living with incapacities and little and medium undertakings in an offer to even the playing field by building up these

gatherings of providers. Classifications of merchandise and ventures that will be obtained on special premise to people who have

been recently segregated or hindered by out of line rivalry will likewise be given anyway the premise of provider improvement

isn't yet stipulated.

As indicated by Lascelles and Dale (2018) there are reasons why provider advancement has turned into a key component in

keeping up or improving an organization's aggressiveness which thusly prompts authoritative improvement. Right off the bat,

mechanical and aggressive weights have brought about a more noteworthy pattern towards specialization. Furthermore, the nature

of rivalry itself has changed. Feigenbaum, among others, proposes that viable global challenge is a blend of rivalry in its

conventional and noticeable structure (item versus item) and a similarly incredible, however less unmistakable, type of rivalry

including organizations' aptitude in actualizing and dealing with a procedure of complete quality administration – of which

providers are crucial parts. As a universal organization East African Breweries Limited perceives that accomplishing exclusive

requirements and yearnings presents one of a kind difficulty in various nations. Thusly, EABL gets that while there will fluctuate

degrees of execution, they make progress toward ceaseless improvement with their providers and they reliably drive up gauges

together to accomplish magnificence. They additionally welcome that the manner in which they work to accomplish the principles

will advance and they will reliably offer help to their providers in accomplishing least models in this way the provider

improvement program (Ireland, 2018).

1.1. Profile of Kenya Ports Authority

The Public Procurement framework in Kenya has developed from a simple stage amid the provincial and post-pilgrim period

to an energetic controlled framework that contrasts well and the worldwide benchmarks. In 1997, the World Bank directed

nationwide audit on Public Procurement and revealed the accompanying shortcomings; diminished viability of Public Financial

Management; Government failure to convey benefits adequately; cloud rules not founded on reasonable challenge and

straightforwardness rendering the framework to mishandle; no legitimate system to uphold obtainment rules.

Kenya Ports Authority (KPA) is a state company with the duty to keep up, work, improve and direct all planned seaports on

the Indian Ocean coastline of Kenya, including essentially Kilindini Harbor at Mombasa; with different ports to be specific Lamu,

Malindi, Kilifi, Mtwapa, Kiungaa, Shimoni, Funzi and Vanga. KPA was built up in 1978 through a demonstration of Parliament

and is situated in Mombasa. Attributable to Kenyan Coast being the port of decision in East Africa KPA has a huge obligation of

being the encapsulation of adequacy and being a vast Organization, it has a few providers who supply basic things demanded by


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its inclination of tasks. Building up its providers would, along these lines, be key for it to accomplish its vital acquisition targets

that will at last drive its Vision: "World class seaports of decision" and Mission: "To encourage and advance worldwide sea

exchange through arrangement of focused port administrations".

Kenya Ports Authority is one of the main parastatal in the nation with colossal budgetary allotments just as immense income

desires in this manner referred to as an essential wellspring of the Government's save for progress. KPA accordingly, is required

to execute completely, arrangements of PPDA 2018, Act and to set benchmarks in obtainment practice that will be the guide for

both public and private divisions in Kenya's economy. These days key acquirement comprehensive of significant worth and

production network techniques requires an increasingly synergistic methodology in how associations handle their providers.

KPA has been extremely quick forward in receiving the idea of provider advancement yet because of no past research on the

equivalent, the effective execution and natural products are yet to be delighted in occasioning this work. Notwithstanding

expanded change in the open acquisition condition at KPA, provider improvement has not gotten the required consideration from

concentrates in open organization, open account or open planning (PPOA, August 2018).

2. Statement of the Problem

With the goal for firms to contend viably and get by in the worldwide market, they should keep up and assemble associations

with a proficient and skillful system of providers and concentrate most extreme incentive from these connections. To make and

keep up such a system and to improve abilities that are vital for the purchasing association to address its expanding focused

difficulties, the purchasing firm may take part in Supplier Development.

In this way, for State Corporations to have the capacity to convey on their order there is having to build up a decent working

association with providers of products and enterprises to their associations. Nearby investigations that have inspect the connection

between provider improvement and execution incorporate however not restricted to; Wachiuri, Waiganjo and Oballah (2015)

evaluated the impact of provider advancement on hierarchical execution of assembling industry in Kenya. Lukhoba and Muturi,

(2015) inspected the impact of provider advancement in the nourishment production network in Kisumu County. Yegon, Kosgei

and Lagat (2015) assessed the impact of provider advancement on purchaser execution in the sugar processing firms in Western

Kenya. Lubale and Kioko (2016) assessed impacts of provider improvement on hierarchical execution of Kenya Power Limited.

Oromo and Mwangangi (2017) inspect impacts of provider improvement on acquisition execution of recorded organizations at the

Nairobi Securities Exchange. Shigoli and Simba (2017) inspected the determinants of provider advancement rehearses in open

organizations in Kenya. Gachini and Kioko (2018) inspected impacts of provider improvement on execution of store chains in

Kenya.

Be that as it may, no examination had been done on the impacts of provider advancement on obtainment execution of Kenya

Ports Authority subsequently the present investigation looks to set up the impacts of provider improvement on acquisition

execution with explicit spotlight on Kenya Ports Authority.

3. Objectives of the Study

3.1 General Objective

The main objective of the study was to determine the effects of supplier development on procurement performance of Kenya

Ports Authority.

3.2 Specific Objectives

The study was guided by the following specific objectives:

i. To determine the effect of supplier partnership on procurement performance of Kenya Ports Authority.

ii. To evaluate the effect of supplier financing on procurement performance of Kenya Ports Authority.

iii. To examine the effect of supplier training on procurement performance of Kenya Ports Authority.

iv. To determine the effect of supplier auditing on procurement performance of Kenya Ports Authority.

4. Literature Review

4.1 Theoretical Framework

Hypotheses are planned to clarify, foresee, and get wonders and, as a rule to challenge and expand existing information inside

the breaking points of the basic bouncing suspicions. The hypothetical structure presents and depicts the hypothesis which

clarifies why the exploration issue under examination exists. A hypothetical structure comprises of ideas, together with their

definitions, and existing hypothesis/speculations that are utilized for the specific examination Sekaran, (2015). This examination


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was tied down on the accompanying speculations; arrange hypothesis in store network the executives, exchange off hypothesis,

social learning hypothesis and asset-based view hypothesis.

4.1.1 Network Theory in Supply Chain Management

The system hypothesis is one of the fabulous speculations for buying and supplies the executives which have been presented

amid the most recent decades. For the most part the system hypothesis is considered to depict the connections in which

organizations, providers, clients or purchaser are locked in. The hypothesis was first presented amid the 1970s and the 1980s and

created from the attention on connections between only two substances, or key partnerships, towards a methodology which

involves numerous connections between various partners all through the production network (Wellenbrock, 2013).

Harland (1996) characterizes the system as a particular kind of connection connecting a characterized set of people, articles or

occasions (Harland, 1996). Chang, Chiang and Pai (2012) further express that the store network arrange is a confused system

model, and its particular setting relies upon the connections among the system individuals (Chang, Chiang, and Pai, 2012).

Alongside this Thorelli (1986) states that the term arrange alludes to at least two associations engaged with long-term connections

(Thorelli, 1986). In addition, systems are viewed as useful for each organization inserted through the ventures and activities of

different partners associated with the procedure (Håkansson and Ford, 2002).

Besides, it was discovered that there are a few hidden suppositions, concerning occasion that a focal position of organizations

inside a system could prompt upper hand, or that organizations share data and learning with their accomplices. In addition, as far

as the commitment to buying it very well may be said that the hypothesis is material to the most significant choice focuses. The

hypothesis assists with the interest arranging through the improvement of the asset designation came to through the settlement of

vital long haul organizations. In addition, organizations implanted in a system can browse a more prominent arrangement of

providers and through this can even guarantee the supply of basic items. Besides, the connections among organizations are

thought to be dependable and, in this way, add to the esteem option on the two sides and further streamline the choice about the

determination of the supply procedure. In conclusion, the system hypothesis adds to the fourth choice point, to be specific the

exchange, since organizations in systems expect to take part in long haul contracts through which solid associations between the

partners are structured (Wellenbrock, 2013).

4.1.2 Trade-Off Theory

The exchange off hypothesis is an improvement of the MM hypothesis yet taking in thought the impacts of assessments and

chapter 11 costs. This hypothesis is considered as the initial step for the advancement of numerous different speculations which

have contemplated how firms pick their capital structure. Modigliani and Miller's (1958) hypothesis can be utilized to portray how

firms use tax assessment to control gainfulness and to pick an ideal obligation level. Obligation level at the opposite side builds

the danger of chapter 11 or as we consider it the insolvency costs in light of the fact that as the obligation to value proportion

expands the obligation holders will require higher loan costs yet in addition the investors will imagine higher benefits for their

speculations.

As indicated by a few examinations (DeAngelo and Masulius, 2014; Fama and French, 2005; Lopez-Gracia and Sogorb-Mira,

2008) expressed that a positive relationship was normal between the compelling duty rate and obligation. Basing on this

contention, Trade off Theory, there was a positive connection between the compelling assessment rate and obligation in.

DeAngelo and Masulius (2014) expressed that non-obligation charge shields, for example, decreases permitted by devaluations

and speculation charge credit could substitute the job of assessment reserve funds permitted by obligation. This implies a business

with an abnormal state of non-obligation charge shields was maybe to have a lower dimension of obligation than a business with

low non-obligation charge shields.

The Trade-Off Theory typically estimates a negative connection between non-obligation charge shields and obligation, in this

manner it was planned the accompanying examination speculation. The most productive business as a rule had limit with regards

to a more elevated amount of obligation, exploiting obligation charge shields (Fama and French, 2005). Profoundly gainful

business was probably going to be progressively ready to satisfy their obligations with respect to the reimbursement of obligation

and premiums, which added to a less probability of chapter 11. The foremost contentions legitimize the likelihood of a positive

connection among productivity and obligation in development firms. (Myers, 2015) expressed that as liquidation and office costs

are more noteworthy for organizations with exclusive standards of development openings, organizations could be hesitant to

utilize high measures of obligation so as not to improve their probability of chapter 11. Therefore, organizations with high

development openings may not utilize obligation as the principal financing choice.

As indicated by the Trade-Off Theory, organizations with more prominent development openings had a lower dimension of

obligation, given that more noteworthy venture openings increment the likelihood of office issues between supervisors/proprietors

and loan bosses, in light of the fact that the previous do have an extraordinary motivating force to underinvest (Myers, 2015).

Substantial resources could be utilized as guarantees on account of business chapter 11, securing the loan bosses' interests.

Michaelas et al., (2013) guaranteed that organizations, with profitable substantial resources, which could be utilized as insurances,


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do had simpler access to outside money, and they could have had most likely more elevated amounts of obligation than

organizations with low dimensions of unmistakable resources. In this way, in the Trade-Off methodology, do had a positive

relationship it was estimated between resource substance and organizations' dimension of obligation. Bigger organizations will in

general have more prominent enhancement of exercises that inferred less probability of chapter 11 as demonstrated by (Titman

and Wessels, 2015). Furthermore, expansive organizations with less unstable benefits were bound to exploit the obligation charge

shields, so they expanded the potential advantages of obligation (Smith and Stulz, 2017). In this way, as per the Trade-Off

methodology, vast organizations will in general increment their dimension of obligation as a result of the lesser probability of

liquidation, and furthermore as an approach to expand the obligation charge shields. Along these lines, a positive relationship was

normal among size and obligation. The scientist could contend that age could be a significant factor of capital structure choices,

given that the organizations in the later phases of their life-cycle had more invaluable terms in getting obligation than youthful

organizations. Ramalho and Silva (2009) the more seasoned was the business (and the more noteworthy was its notoriety), the

lower was the expense of obligation, as long as lenders trusted that the business won't embrace extends that infer the substitution

of advantages.

Along these lines, a positive relationship was normal among age and obligation. The positive connection among age and

obligation were liable to higher business hazard, and more prominent likelihood of liquidation. Thus, development firms will in

general decrease their dimension of obligation. In this way, as indicated by Trade-Off Theory a negative relationship was normal

between organizations' dimension of hazard and obligation and there was an ideal obligation proportion, which was where tax cuts

were equivalent to the liquidation and office costs related with obligation. At whatever point organizations go amiss from their

obligation proportion, the presence of modification costs keeps organizations from making a complete acclimation to that

proportion, thus Trade-Off Theory gauges that organizations were to make a halfway change of obligation towards the ideal

obligation proportion as expressed by (Lopez-Gracia and Sogorb-Mira, 2008). Embracing the viewpoint of Trade-Off Theory. In

synopsis the hypothesis targets credit gathering approach and credit organization exercises rehearses factors to limit the obligation

apportion of the organization. This hypothesis reinforces the provider financing through gathering of obligation cycle, the shorter

the period the better the money related execution.

4.1.3 Social Learning Theory

Social learning hypothesis was created by Bandura and Walters in 1963 and further nitty-gritty in 1977 key fundamentals of

social learning hypothesis are as per the following: learning isn't absolutely conduct; rather, it is an intellectual procedure that

happens in a social setting. Hypothesis sets that individuals gain from each other, through perception, impersonation, and

displaying. The hypothesis has regularly been known as a scaffold among behaviorist and intellectual learning speculations since

it envelops consideration, memory, and inspiration. Bandura's social learning hypothesis accentuates the significance of watching

and displaying the practices, frames of mind, and enthusiastic responses of others. It depends on the learning standards and

persuasive thoughts of Hull, who endeavored to disclose conduct with respect to inner states known as "drives" (Chen, Ellis, and

Suresh, 2016).

One of the central errands of any fruitful present-day association is to pull in the best, most splendid, most coordinated, and

most inventive workers by building up a powerful and drawing in learning society. To do this implies empowering constant

learning and development of providers. The best providers are the individuals who are spurred to learn and constantly develop

their insight and aptitudes.

Learning can be separated into two essential organizations: Implicit learning and unequivocal learning. The first is the learning

of complex data without cognizant exertion; the second is learning with cognizant support. Social learning includes both of these

learning strategies and gives an approach to learn both deliberately and unwittingly (Marksberry, 2012). The social learning

hypothesis encourages providers to obtain new aptitudes and experience to have the capacity to serve successful and increment

acquirement execution in Kenya Ports Authority.

4.1.4 Resource Based View Theory

Asset Based View (RBV) is a key hypothetical establishment for seeing how manageable upper hand can be accomplished in

associations. RBV is a monetary hypothesis that proposes that firm execution is a component of the sorts of assets and capacities

constrained by firms (Barney, 2008). An asset is a moderately perceptible, tradable resource that adds to an association's market

position by improving client esteem or bringing down expense (or both); and a capacity signifies the capacity of a firm to achieve

errands that are connected to higher financial execution by expanding esteem, diminishing expense, or both (Walker, 2009).

Barney (2008) likewise portrays assets as substantial and elusive resources a firm uses to think about and actualize its

procedures; and capacities as a subset of assets that empower a firm to exploit its different assets. As indicated by Priem and

Butler (2001), the asset-based view misses' administrative ramifications or operational legitimacy. The asset-based view discloses

that supervisors need to create and acquire vital assets that meet the criteria profitable, rareness, non-imitable and no substitution

and how a proper association can be created. In any case, the asset-based view does not clarify how chiefs can do this (Connor,

2002). As indicated by Priem and Butler (2001) and Collins (1994), the asset-based view involves endless relapse.


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Firms which have an ability which they can put practically speaking best can be overwhelmed by a firm that can build up that

capacity superior to anything firm who is best by and by. As per Eisenhardt and Martin (2010), accessibility of substitute assets

will in general discourage returns of the holders of a given asset and this legitimizes the motivation behind why they ought to be

protected from contenders. By leading a viable esteem chain examination, an association can recognize these rare assets that give

it upper hand and apply fitting components to shield the assets from contenders. This hypothesis will help further clarify the

impact of provider association, provider financing and provider preparing and their effects on obtainment execution.

5. Conceptual Framework

Bryman and Bell, (2018) defines conceptual framework as a diagrammatical, graphical or visual depiction of a relationship

between the independent variables and the dependent variable as shown in Figure 1.

Independent Variables Dependent Variable

Figure 1: Conceptual Framework

6. Discussion of Key Variables

6.1 Supplier Partnership

Provider organization, characterized as the dedication of relationship-explicit assets to key provider connections, provider

preparing and training, and non-ill-disposed joint effort with providers, decidedly impact the purchasing association's general

execution through their improvement of provider execution or potentially abilities. Provider organization or coordinated effort

alludes to a purchaser company's use of its capital, time and HR toward the improvement of its providers' execution and

capacities. Hence, the purchasing firm for instance funds the provider's sources of info, machines, devices, or castings.

Furthermore, the purchaser firm attempts exercises that exchange learning and capabilities into the provider's association.

Instances of such exercises contain nearby conference, instruction and preparing programs, impermanent staff exchange, and

welcoming provider's work force (Chavhan, Mahajan and Sarang, 2016; Wagner, 2016).

As indicated by CIPS (2013), provider organization is described by receptiveness, viable correspondence, trust, genuineness,

straightforwardness, sharing, common advantage, and close co-task between the purchaser firm and chose providers. As talked

about in the hypothetical system, the rationale supporting provider organization between a purchaser firm and its key providers is

drawn from the Resource Dependency Theory (Ukalkar, 2015).

Supplier Partnership

Capital Support

Technical Support

Information Exchange

Joint Ventures

Supplier Financing

Prompt Payment

Advance Payments

Credit Guarantees

Direct Purchase Payment

Procurement Performance

Cost

Quality

Time

Efficiency

Supplier Training

Buyer Assisted Training

Supplier Own Training

Seminars & Conferences

Professional Associations

Supplier Auditing

Compliance

Value for Money

Quality Assurance

Supplier Compliance


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As indicated by Bowersox, Closs, Cooper and Bowersox (2017), there are five essential types of joint effort which depend on

recognized reliance and data sharing between purchaser firms and providers. The most rudimentary of these are contracting and

redistributing. In these connections, recognized reliance is restricted. Contracting with a provider acquaints a period measurement

with conventional purchasing by confining value, administration, and execution desires over a predefined period. Thusly the

provider consents to convey the predefined item(s) as indicated by arranged terms and conveyance necessities.

As per Lysons and Farrington (2016), this type of joint effort is frequently called antagonistic in light of the fact that the

relationship is normally founded on exchange. Because of arranged settlement, the terms of execution and related installments are

obviously determined. Disappointment of either gathering to perform will prompt authorizations, plausible re-arrangement or

conceivable end. In re-appropriating, the center movements from purchasing an item or material to playing out a particular

administration or procedure, for example, assembling or warehousing. Contracting and re-appropriating connections include a

level of data sharing, essentially operational data, however there is restricted joint arranging between the purchaser firm and the

provider firm, and there are commonly explicit periods for rebidding or ending the connections. The re-appropriating relationship

is plainly situated in the conventional order and-control standard with the purchaser as the pioneer. In regulated connections, a

predominant purchaser firm accepts authority accountability and looks for cooperation with providers.

The purchaser firm and its picked provider deliberately consent to incorporation of human, money related, operational, or

specialized assets to make more prominent productivity and more prominent client sway (Lysons and Farrington, 2016; Ukalkar,

2017). At last, through coordinated effort, taking an interest firms make joint strategies and incorporate activities. The relationship

incorporates broad joint arranging and is relied upon to be constant for in any event the middle of the road term and possibly the

exceptionally long haul (Ukalkar, 2017). A few instances of coalitions incorporate Walmart's course of action with Procter and

Gamble, and Dell's plan with its providers (Bowersox, et al., 2013).

6.2 Supplier Financing

As indicated by Choi (2018), provider budgetary help is the purchasers' exertion towards its providers to persistently spot

monetary shortcomings inside its supply base and taking the important money related help to evade supply interruptions and

increment provider money related wellbeing in order to meet his present moment and long haul monetary commitments. Money

related help is a basic achievement factor in provider improvement and provider execution. As indicated by Heidi and John

(2017), demonstrated money related help gives the purchasing firm expanded provider rivalry in the worldwide market and

possibly diminishes transportation and other calculated expenses of providers. The present effective purchasers can credit their

accomplishment to their significant purchaser provider relationship possible through purchasers' drive to help provider by means

of specialized help, budgetary help and through provider preparing so as to accomplish predominant execution and shared addition

for the two gatherings.

Budgetary venture can likewise allude to the purchasing association’s exertion to build up their provider by participating in

human and capital assets which incorporates direct interest in gear and instruments and specialized help at the provider site (Li et

al., 2017). At the point when the provider gets assessment input from the purchasing association for enhancements, the firm needs

to give recommendations or work force to provider site (Krause et al., 2000; Prahinski and Benton, 2018). Such activity of the

purchasing firm persuades the immediate contribution of their potential providers including budgetary assets (Wagner, 2016).

Arrangement of money related help might be stretched out to explicit providers who may encounter monetary troubles to

enable them to meet their budgetary commitments. This can be as up-front installments, credits, gear gifts and so forth which help

a provider in gaining operational limit which they might not have been prepared to do. A provider who is appropriately and

sufficiently monetarily bolstered expands the purchasing association’s capacity to convey high caliber and creative items to its

clients and in this manner lessens purchasers' operational dangers. Provider's budgetary help is basic in deciding the provider's

capacity to remain monetarily dissolvable (Wagner, 2016). Budgetary help improves providers' ability and ability to adapt to the

purchasers' necessity and in this manner reinforces the providers' ability to meet asset prerequisites by the purchaser.

6.3 Supplier Training

Obtainment execution of an association does not depend entirely on the single association's execution but rather on the

provider's execution too (Wong and Wong, 2018). Thus, it is imperative to consider the distinctive provider's advancement

rehearses. Accessible abstract works recommends that purchasers or purchasing association have utilized trainings as a method for

supporting their providers with certain purchasers giving more help than others. Provider preparing programs are planned by the

purchaser concentrated on upgrading and improving provider specialized ability regarding key skills like quality, generation

procedures and the executive’s best practices to upgrade association's efficiency. Purchasers can choose to either concentrate on

momentary advantages or take a gander at provider improvement as a long-haul speculation when concocting the preparation

programs. Along these lines, providers approach distinctive sorts of provider advancement programs relying upon their

purchasers. This infers the sorts of preparing that would most profit providers could be best evaluated through examinations

concentrating on the provider point of view. This should be possible by recognizing the pertinent kinds of preparing purchaser

bolstered preparing projects could increment. This would be on the grounds that purchasers could choose the kind of preparing


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reasonable for explicit gatherings of providers. The correct kind of preparing could then prompt an expansion in exhibition for the

provider which would thus empower an expansion in purchaser bolstered preparing. Purchaser may send his representatives or

gathering of groups to prepare provider or he may welcome gathering of providers confronting same issue for preparing in his

own firm (Ambrose et al., (2018).

Kadir et al., (2018) put forth a defense think about in Malaysian car industry on Patterns of Supplier Learning. Here they found

that provider improvement programs bolster the advancement of a provider's capacities as a rule with the help of a purchaser.

Provider advancement likewise relies upon provider's advantage and how they investigate them self to expand their abilities.

Investigating conditions that gives purchaser bolster preparing could recognize factors that providers themselves esteem

significant for advancement of their capacities. It is guaranteed that help from purchasers for provider preparing has been

insufficient. Along these lines, there is a need to recognize the kinds of preparing those providers themselves like. Purchasers

themselves have huge information of the preparation that a provider may require yet as innovation improvement happens the

purchaser never again has a hang on the majority of the innovation that is included or coming. In this way, it is significant that

providers hoping to build up their capacities approach the sort of preparing that they require which could conceivably be given by

their purchasers. For providers that approach purchaser bolstered preparing their preparation needs may frequently change as they

build up their very own capacities, (Nadia et al., 2011).

6.4 Supplier Auditing

Increasing the effectiveness, efficiency and transparency of procurement systems is an on-going concern of governments and

the international development community. All countries have recognized that increasing the effectiveness of the use of public

funds requires the existence of an adequate national procurement system that meets international standards and that operates as

intended (UNCTRAL Procurement Modal Law).

The regular and continuous assessment of procurement entities in countries procurement systems with regard to their

compliance with the procedures, rules and regulations has been embraced worldwide (as adopted in the UNCTRAL Procurement

modal Law). In Tanzania, public procurement is regulated by the Public Procurement Act passed into law in 2004 which requires

all public procurement to be conducted in accordance with the principles of transparency, accountability and fairness and in a

manner that maximizes competition and achieves value for money (PPA, 2004).

Procurement processes, in complying with the procurement legislation, need to be permanently monitored. As a known

phenomenon, effective and efficient procurement control play a key role since good rules are necessary but not always enough to

curb procurement systemic and systematic corruption. It is also important to have clear and publicly available procedures and to

have regular audits by external parties. In this case the need to monitor that the activities of public sector entities are in accordance

with the relevant authorities that govern them and that the due process rights of citizens to know the public procurement process

management in a transparent and auditable pattern (Kenneth & Brian, 2018).

Compliance audit as defined by International Organization of Supreme Audit Institutions (INTOSAI) involves audit of the

degree to which the audited entity follows rules, laws and regulation, policies, established codes, or agreed upon terms and

conditions, etc. Compliance auditing may cover a wide range of subject matters. In general, the purpose of a compliance audit is

to provide assurance to intended users about the outcome of the evaluation or measurement of a subject matter against suitable

criteria (Gachini & Namusonge, 2018).

Essentially, “value for money (VFM) audit” and “performance audit” is used interchangeably. Performance audit, as a

common practice in auditing parlances, is considered to be one of the most effective means for improving performance and

governance. Performance or VFM audit assesses the extent to which the procuring function is achieving economy, efficiency, and

effectiveness in procurement activities. The public procurement policies are based on the need to make the best possible use of

public funds, whilst conducting all procurement with honesty and fairness (vide Regulation 4, GN No. 97, 2005).

6.5 Procurement Performance

Acquisition execution can be characterized as a proportion of distinguishing the degree to which the acquirement work can

achieve the targets and objectives with least costs (Van Weele, 2015). For any association to change its concentration and become

increasingly suitable, Amaratunga and Baldry (2016) recommend that acquirement execution is a key driver to improving

predominance of administrations while its nonattendance or utilization of improper methods can go about as an impediment to

change and may prompt decay of the obtaining capacity. Handfield, et al., (2015) declares that cutting edge acquisition and

inventory network execution estimation frameworks contain an assortment of measures which falls into two noteworthy classes:

viability measures and productivity measures. Adequacy alludes to the degree to which by picking a specific strategy, the board

can meet a recently settled objective while proficiency alludes to the connection among arranged and genuine penances made to

understand a recently settled upon objective.


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As a rule, the key execution goals that apply to a wide range of association and are firmly identified with consumer loyalty

necessities are speed, steadfastness, adaptability, quality, and cost (Bhagwat, and Sharma, 2017). Speed implies doing things

rapidly. It is tied in with conveying products and enterprises to clients as quick as could be allowed. This includes settling on brisk

choices and quickly moving materials and data inside the activities. Trustworthiness implies getting things done on schedule and

as guaranteed. It is tied in with creating dependability. Steadfastness can be accomplished using dependable gear, compelling

correspondence, productive booking frameworks, spurred workforce and straightforwardness of procedures (Batista, 2018).

Adaptability is tied in with having the capacity to change the tasks to satisfy new necessities. As necessities can change after

some time, associations need to create tasks capacity to present new or adjusted items and administrations. Adaptability likewise

includes volume adaptability that is the capacity to change volume of yield after some time and conveyance adaptability which is

the capacity to change conveyance time. Adaptability can be accomplished using increasingly adaptable hardware, providers with

great adaptability execution and multi-talented workforce among others (Bhagwat, and Sharma, 2017). The quality goal can be

accomplished by the arrangement of blunder free items or administrations that comply with client prerequisites. This requires

gifted workforce, sufficient occupation details, appropriate advancements, and compelling correspondence. Lower cost of creation

or administration conveyance reflects to the client in type of lower cost. Cost decrease can be accomplished by growing great

associations with providers, great arrangement of providing contracts, getting the correct blend of assets and offices as sources of

info (Batista, 2018).

Every one of these measures are planned to assess vital obtainment commitment to benefit, provider relations and consumer

loyalty (CIPS 2013).It is basic to have such execution measures to assist an association with supporting; better basic leadership,

improve correspondence among the acquirement accomplices, give chance to execution input that will be utilized to anticipate or

address issues distinguished all the while, with a perspective on inspiring and coordinating practices towards the ideal final

product.

7. Research Methodology

The specialist utilized graphic research plan. Spellbinding examination configuration is worried about discovering who, what,

where and the amount of a marvel, which is the worry of the investigation. Sekaran, (2015) sees that the objective of clear

research is to offer the scientist a profile or depict significant parts of the wonders of enthusiasm from the individual, association,

industry or other viewpoint. Furthermore, the plan best fit in the ascertainment and portrayal of qualities of variable in this

examination consider and takes into consideration utilization of surveys, interviews and expressive measurements, for example,

frequencies and rates. Furthermore, a spellbinding plan is fitting since it empowers the specialist to gather enough data essential

for speculation.

The target population for this study comprised of staff currently employed in KPA. However, the sampling frame only focused

on correspondent from the Procurement and User departments who are 1,238 in total (KPA Handbook, 2018) as shown in Table 1.

Table 1 Target Population

Staff Level Target Population Percent

Top Management 100 8

Middle Level Management 320 26

Lower Level Management 818 66

TOTAL 1,238 100

Stratified irregular inspecting system was utilized in this investigation to choose an example measure. With the end goal of this

examination the example outline was stratified into different gatherings. The structure in KPA has placed staff in three

classifications. Top administration level comprises of the Managing Director and General Managers who head divisions; center

dimension the board contains utilitarian heads of office and line administrators while low dimension the executives is primarily

unionisable staff. The example outline was stratified through top administration level, center dimension the board and low-level

administration. An example size of KPA staff generally obtainment officials will be chosen in the examination out of the whole

KPA staff. Stratified proportionate irregular testing strategy was utilized to choose the example. As per Bryman and Bell, (2018)

stratified proportionate arbitrary testing strategy produce assessments of by and large populace parameters with more prominent

exactness and guarantees an increasingly delegate test were gotten from a moderately homogeneous populace. Stratification is

expected to lessen standard blunder by giving some power over change. As per Kothari and Gang, (2018), the system produces

appraisals of by and large populace parameters with more prominent exactness and guarantees a progressively agent test is gotten

from a generally heterogeneous populace to make every stratum homogenous.

The total sample size for this study was obtained using the formulae developed by Yamane, (2017) at 95% confidence level

and P = .5. Therefore, the sample size for the study will be 302 as shown in Table 2.

n = N / 1 + N (α) ²


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Where:

n= the sample size,

N= the sample frame (population)

α= the margin of error (0.05%).

n = 1238 / 1+ 1238(0.05)2 = 302

Table 2 Sample Size

Staff Level Target Population Sample Size

Top Management 100 80

Middle Level Management 320 107

Lower Level Management 818 115

TOTAL 1,238 302

8. Research Results

8.1 Descriptive Statistics

8.1.1 Supplier Partnership

The first objective of the study was to examine effect of supplier partnership on procurement performance of Kenya Ports

Authority. The statement that Kenya Ports Authority makes mutually beneficial joint investments with independent power

producers had a mean score of 3.46 and standard deviation of 1.332. The statement that Kenya Ports Authority provides technical

training for vendors operational staff had a mean score of 3.78 and a standard deviation of 1.553. The statement that Kenya Ports

Authority allows vendors to access their procurement portals had a mean score of 3.51 and a standard deviation of 1.447. The

statement that Kenya Ports Authority provides successful vendors a contract of two years had a mean score of 3.91 and a standard

deviation of 1.494. These results agree with Ndugi and Kwasira (2017) that contractual relationships between the university and

source partners must be supported from the entire organization. More importantly, for a procurement organization to operate both

efficiently and effectively in such a complex environment communication strategy need to be created and suitable instruments put

in use.

Table 3 Supplier Partnership

Mean

Std.

Deviation

Kenya Ports Authority makes mutually beneficial joint

investments with independent power producers. 3.46 1.332

Kenya Ports Authority provides technical training for

vendors operational staff 3.78 1.553

Kenya Ports Authority allows vendors to access their

procurement portals 3.51 1.447

Kenya Ports Authority provides successful vendors a

contract of two years 3.91 1.494

Valid N (listwise)

8.1.2 Supplier Financing

The second objective of the study was to examine effect of supplier financing on procurement performance of Kenya Ports

Authority. KPA offers financial support to suppliers in form of advance payments had a mean score of 3.46 and a standard

deviation of 1.125. The statement that KPA offers financial support to key KPA suppliers in form of credits had a mean score of

3.86 and a standard deviation of 1.289. The statement that Offering financial support to key suppliers will cut down our product

cost had a mean score of 3.72 and a standard deviation of 1.066. The statement in agreement that Offering financial support to key

suppliers will boost our product quality had a mean score 4.06 and a standard deviation of 1.228. The statement that offering

financial support to key suppliers will boost our product quality had a mean score of 3.96 and a standard deviation of 1.269. The

statement that offering financial support to suppliers will enhance our operational flexibility had a mean score of 3.13 and a

standard deviation of 1.464. These results agree with Mesa, Waweru and Kwasira (2018) that adequate resources should be

provided for procurement planning in the Judiciary department at Nakuru Law Courts, professionalism should be enhanced to

ensure compliance to procurement laws, the judiciary procurement department should focus on contract terms and timelines to

minimize delays in service delivery by suppliers and procurement staff should be regularly trained on ICT to facilitate

procurement performance.


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Table 4 Supplier Financing

Mean

Std.

Deviation

KPA offers financial support to suppliers in form of advance payments. 3.46 1.125

KPA offers financial support to key KPA suppliers in form of credits. 3.86 1.289

Offering financial support to key suppliers will cut down our product cost. 3.72 1.066

Offering financial support to key suppliers will boost our product quality 4.06 1.228

Offering financial support to key suppliers will boost our product quality 3.96 1.269

Offering financial support to suppliers will enhance our operational

flexibility. 3.13 1.464

Valid N (listwise)

8.1.3 Supplier Training

The third objective of the study was to examine effect of supplier training on procurement performance of Kenya Ports

Authority. The statement that KPA offers training programs and facilities to their key suppliers had a mean score of 3.71 and a

standard deviation of 1.110. The statement that administering training programs for key KPA suppliers will cut down the product

cost had a mean score 3.78 and a standard deviation of 1.137. The statement that administering training programs for key KPA

suppliers will enhance the product quality had a mean score of 3.28 and a standard deviation of 1.295. The statement that

administering training programs for key KPA suppliers will improve on the delivery time had a mean score of 3.93 and a standard

deviation of 1.252. The statement that Administering training programs for key KPA suppliers will improve the operational

flexibility had a mean score of 3.62 and a standard deviation of 1.309. The statement that KPA continuously trains employees

across the ranks involved in the procurement process had mean score of 3.93 and a standard deviation of 3.93 and a standard

deviation of 1.520. The statement that KPA encourages individual learning had a mean score of 3.60 and a standard deviation of

1.436. The statement that KPA assists supplier in acquiring certification by agencies had a mean score of 4.01 standard deviation

of 1.614. These results agree with Musyoki and Ngugi (2017) findings revealed a positive and significant relationship between

supplier training, information sharing, management support, strategic partnership and performance of pharmaceutical suppliers for

hospitals in Nairobi City County.

Table 5 Supplier Training

Mean

Std.

Deviation

KPA offers training programs and facilities to their key suppliers. 3.71 1.110

Administering training programs for key KPA suppliers will cut down the

product cost 3.78 1.137

Administering training programs for key KPA suppliers will enhance the

product quality. 3.28 1.295

Administering training programs for key KPA suppliers will improve on

the delivery time. 3.93 1.252

Administering training programs for key KPA suppliers will improve the

operational flexibility. 3.62 1.309

KPA continuously trains employees across the ranks involved in the

procurement process 3.93 1.520

KPA encourages individual learning 3.60 1.436

KPA assists supplier in acquiring certification by agencies. 4.01 1.614

Valid N (listwise)

8.1.4 Supplier Auditing

The fourth objective of the study was to examine effect of supplier auditing on procurement performance of Kenya Ports

Authority. The statement that all suppliers, contractors and/or consultants that deal with KPA are fairly treated and/or dealt with

had a mean score of 4.20 and a standard deviation of 1.398. The statement that public procurement officials at KPA are showing

the highest degree of integrity when dealing with suppliers, contractors and/or consultants had a mean score of 3.17 and a standard

deviation of 1.744. The statement that All procurement transactions at KPA are complying with the principle of competition

whereby all suppliers, contractors and/or consultants are given equal chance to participate had a mean score of 3.62 and a standard

deviation of 1.321. This agrees with (Lascelles & Dale, 2018).


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Table 6 Supplier Auditing

Mean

Std.

Deviation

All suppliers, contractors and/or consultants that deal with KPA are fairly

treated and/or dealt with 4.20 1.398

Public procurement officials at KPA are showing the highest degree of

integrity when dealing with suppliers, contractors and/or consultants 3.17 1.744

All procurement transactions at KPA are complying with the principle of

competition whereby all suppliers, contractors and/or consultants are given

equal chance to participate

3.62 1.321

Valid N (listwise)

8.1.5 Procurement Performance

The statement that introduction of supplier development will lead to reduction in product and material costs had a mean score

of 3.96 and a standard deviation of 1.377. The statement that Introduction of supplier development will lead to provision of error-

free products or services that conform to customer requirements had a mean score of 3.91 and a standard deviation of 1.582. The

statement that introduction of supplier development will lead to delivery of goods and services to the organisation as fast as

possible or within the specified time had a mean score of 3.21 and a standard deviation of 1.511. The statement that introduction

of supplier development will lead to reduction in supplier quality problems had a mean score of 3.82 and a standard deviation of

1.326. The statement that introduction of supplier development will lead to the ability of the supplier to introduce new or modified

products, services and to change volume of output over time had a mean score 3.54 and a standard deviation of 1.332. The

statement that introduction of supplier development will lead to eliminating wasteful steps in production process had a mean score

of 3.49 and a standard deviation of 1.554. The statement that introduction of supplier development will lead to transparency in

procurement about winning bids and prices had a mean score of 3.05 and a standard deviation of 1.345.

Table 7 Procurement Performance

N Mean

Std.

Deviation

Introduction of supplier development will lead to reduction

in product and material costs. 245 3.96 1.377

Introduction of supplier development will lead to provision

of error-free products or services that conform to customer

requirements.

245 3.91 1.582

Introduction of supplier development will lead to delivery of

goods and services to the organisation as fast as possible or

within the specified time

245 3.21 1.511

Introduction of supplier development will lead to reduction

in supplier quality problems. 245 3.82 1.326

Introduction of supplier development will lead to the ability

of the supplier to introduce new or modified products, services

and to change volume of output over time.

245 3.54 1.332

Introduction of supplier development will lead to eliminating

wasteful steps in production process 245 3.49 1.554

Introduction of supplier development will lead to

transparency in procurement about winning bids and prices. 245 3.05 1.345

Valid N (listwise) 245

8.2 Inferential Statistics

Inferential statistics was correlation analysis, coefficient of determination, regression analysis, analysis of variance and

coefficients.

8.2.1 Coefficient of Correlation

Pearson Bivariate correlation coefficient was used to compute the correlation between the dependent variable (Procurement

Performance) and the independent variables (Supplier Partnership, Supplier Financing, Supplier Training and Supplier Auditing).

In trying to show the relationship between the study variables and their findings, the study used the Karl Pearson’s coefficient

of correlation. This is as shown in Table 8 below. According to the findings, it was clear that there was a positive correlation

between the independent variables, supplier partnership, supplier financing, supplier training and supplier auditing and the


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dependent variable procurement performance. The analysis indicates the coefficient of correlation, r equal to 0.190, -0.218, 0.016

and 0.181 for supplier partnership, supplier financing, supplier training and supplier auditing respectively. This indicates positive

relationship between the independent variable namely supplier partnership, supplier training and supplier auditing and the

dependent variable procurement performance.

Table 8 Correlation Analysis

Procurement

Performance

Supplier

Partnership

Supplier

Financing

Supplier

Training

Supplier

Auditing

Procurement

Performance

1

245

Supplier

Partnership

.190**

1

.003

245 245

Supplier

Financing

-.218**

-.176**

1

.001 .006

245 245 245

Supplier

Training

.016 .363**

.169**

1

.005 .000 .008

245 245 245 245

Supplier

Auditing

.181**

.728**

-.124 -.153* 1

.005 .000 .053 .016

245 245 245 245 245

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

8.2.2 Coefficient of Determination (R2)

To assess the research model, a confirmatory factors analysis was conducted. The four factors were then subjected to linear

regression analysis in order to measure the success of the model and predict causal relationship between independent variables

(Supplier partnership, Supplier Financing, Supplier Training and Supplier Auditing), and the dependent variable (Procurement

Performance).

Table 9 Coefficient of Determination (R2)

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .744a .554 .550 3.59658

a. Predictors: (Constant), Supplier Auditing, Supplier Financing, Supplier Training, Supplier

Partnership

The model explains 55.4% of the variance (R Square = 0.55) on Procurement Performance. Clearly, there are factors other

than the four proposed in this model which can be used to predict procurement performance. However, this is still a good model as

Bryman and Bell, (2018) pointed out that as much as lower value R square 0.10-0.20 is acceptable in social science research. This

means that 55.4% of the relationship is explained by the identified four factors namely supplier partnership, supplier financing,

supplier training and supplier auditing. The rest 44.6% is explained by other factors in the procurement performance in Kenya

Ports Authority, Kenya not studied in this research. In summary the four factors studied namely, supplier partnerships, supplier

financing, supplier training and supplier auditing or determines 55.4% of the relationship while the rest 44.6% is explained or

determined by other factors.

8.3 Regression Results

8.3.1 Analysis of Variance (ANOVA)

The study used ANOVA to establish the significance of the regression model. In testing the significance level, the statistical

significance was considered significant if the p-value was less or equal to 0.05. The significance of the regression model was as

per Table 10 below with P-value of 0.00 which is less than 0.05. This indicates that the regression model is statistically significant

in predicting factors of procurement performance. Basing the confidence level at 95% the analysis indicates high reliability of the

results obtained. The overall Anova results indicates that the model was significant at F = 62.938, p = 0.001.


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Table 10 Analysis of Variance

Model

Sum of

Squares df

Mean

Square F Sig.

1 Regression 3256.405 4 814.101 62.938 .001b

Residual 3104.493 240 12.935

Total 6360.898 244

a. Dependent Variable: Procurement Performance

b. Predictors: (Constant), Supplier Auditing, Supplier Financing, Supplier Training, Supplier

Partnership

8.3.2 Regression Coefficients

The researcher conducted a multiple regression analysis as shown in Table 11 to determine the relationship between

procurement performance in Kenya Ports Authority in Kenya and the four variables investigated in this study.

Table 11 Regression Coefficients

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig. B Std. Error Beta

1 (Constant) 27.038 3.719 7.271 .000

Supplier

Partnership .261 .086 .110 3.035 .000

Supplier Financing -.267 .096 -.182 -2.787 .006

Supplier Training .234 .064 .038 3.539 .001

Supplier Auditing .111 .122 .084 .911 .003

a. Dependent Variable: Procurement Performance

The regression equation was:

Y = 27.038 + 0.261 X1 + (0.267) X2 + 0.234X3 + 0.111X4

Where;

Y = the dependent variable (Procurement Performance)

X1 = Supplier Partnership

X2 = Supplier Financing

X3 = Supplier Training

X4 = Supplier Auditing

The regression equation below established that taking all factors into account (Procurement Performance in Kenya Ports

Authority, Kenya) constant at zero Procurement performance in Kenya Ports Authority, Kenya will be 27.038. The findings

presented also showed that taking all other independent variables at zero, a unit increase in supplier partnership would lead to a

0.261 increase in the scores of procurement performance in Kenya Ports Authority, Kenya; a unit increase in supplier finance

would lead to a negative (0.261) increase in the procurement performance in Kenya Ports Authority, Kenya; a unit increase in

supplier training would lead to a 0.234 increase the scores of procurement performance in Kenya Ports Authority, Kenya and a

unit increase in supplier auditing would lead to negative 0.111 increase the scores of procurement performance in Kenya Ports

Authority, Kenya (Musyoki & Ngugi, 217).

9. Discussion of Key Findings

The study set out to establish the effect of supplier development on procurement performance of Kenya Ports Authority. The

study was based on four specific objectives namely supplier partnership, supplier financing, supplier training and supplier

auditing. On supplier partnership, the study findings established that Kenya Ports Authority has entered into strategic procurement

partnerships with suppliers. This partnership is of mutual benefits to both vendors and KPA. Further, the study established that to

enhance the capacity of suppliers, Kenya Ports Authority regularly offers technical training to both suppliers and staff. Also, the

study established that Kenya Ports Authority has allowed suppliers to have access to their portals for the purposes of accessing to

procurement opportunities (Ndugi & Kwasira, 2017).

On supplier financing the study established that Kenya Ports Authority after entering into strategic partnership with suppliers,

they help suppliers by providing credit facilities such as advance payments, sanctioning loans for suppliers and prompt payments

of suppliers. This has enabled suppliers to be able to supply as and when required because of a sound financial base of suppliers

(Lubale & Kioko, 2016).


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On supplier training, the study established that Kenya Ports Authority carries out numerous training for suppliers for the

purposes of sensitization and awareness creation. This has helped suppliers to be independent and reduce on paperwork since most

of the tendering processes happen online. This has also improved on efficiency of the procurement processes and ethical issues.

Further supplier training has enabled suppliers to know end to end process of tendering and eventual payment for the work done.

It has also increased on networking of suppliers amongst themselves (Shigoli & Simba, 2017).

On supplier auditing, the study established that Kenya Ports Authority vets all suppliers for suitability and otherwise before

they enter into strategic procurement partnership. This has helped to weed out briefcase suppliers and those who do not meet the

set-out criteria of suppliers (Lukhoba & Muturi, 2015).

10. Conclusions and Recommendations

10.1 Conclusions

The hypothesis statement was there is no significant effect of supplier partnership on procurement performance of Kenya Ports

Authority. From the hypothesis testing results show that t values were above the threshold of 2.0. Therefore, the hypothesis results

rejected the null hypothesis that there is no significant effect of supplier partnership on procurement performance of Kenya Ports

Authority. Based on the results, it is concluded that supplier partnership has a significant effect on procurement performance of

Kenya Ports Authority in Kenya.

The hypothesis statement was there is no significant effect of supplier financing on procurement performance of Kenya Ports

Authority. From the hypothesis testing results show that t values were below the threshold of 2.0. Therefore, the hypothesis results

accepted the null hypothesis that there is no significant effect of supplier financing on procurement performance of Kenya Ports

Authority. Based on the results, it is concluded that supplier financing has no significant effect on procurement performance of


The hypothesis statement was there is no significant effect of supplier training on procurement performance of Kenya Ports

Authority. From the hypothesis testing results show that t values were above the threshold of 2.0. Therefore, the hypothesis results

rejected the null hypothesis that there is no significant effect of supplier training on procurement performance of Kenya Ports

Authority. Based on the results, it is concluded that supplier training has a significant effect on procurement performance of


The hypothesis statement was there is no significant effect of supplier auditing on procurement performance of Kenya Ports

Authority. From the hypothesis testing results show that t values were below the threshold of 2.0. Therefore, the hypothesis results

accepted the null hypothesis that there is no significant effect of supplier auditing on procurement performance of Kenya Ports

Authority. Based on the results, it is concluded that supplier auditing has a significant effect on procurement performance of


10.2 Recommendations

The following recommendations were put forward:

i. That Kenya Ports Authority should enter into procurement strategic partnerships with suppliers;

ii. That Kenya Ports Authority should carry out a needs assessment on what do suppliers want;

iii. That Kenya Ports Authority should carry out training programmes for suppliers and even finance staff to further their

studies in procurement in local universities;

iv. That Kenya Ports Authority should open the scope for auditing of suppliers so as to bring in as many suppliers as possible.

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INTERNATIONAL JOURNAL OF ACADEMICS & RESEARCH (IJARKE) · 2019-09-23 · growing new courses to supply, growing new item in the market. ... 1.1. Profile of Kenya Ports Authority