Factors affecting effective implementation of Procurement Practices in tertiary public training ...

194 Pages·2015·0.83 MB·English

Factors affecting effective implementation of Procurement Practices in
tertiary public training institutions in Kenya

Silas Eliphas Njeru

A thesis submitted in partial fulfillment for the degree of Doctor of
Philosophy in Supply Chain Management in the Jomo Kenyatta
University of Agriculture and Technology

2015
DECLARATION

This thesis is my original work and has not been presented for a degree in any other
university.
Signature……………………………… Date:……………………..
Silas Eliphas. Njeru
This research thesis has been submitted for examination with our approval as University
Supervisors

Signature……………………………… Date:……………………..
Dr. Patrick K. Ngugi
Jkuat, Kenya
Signature……………………………… Date:……………………..
Dr. Robert M. Arasa
Catholic University of East Africa, Kenya
Signature……………………………… Date:……………………..
Dr. James, M.K. Kahiri
Kenyatta University, Kenya

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DEDICATION
To my family for their encouragement and continuous support throughout my progress to
this magnitude of scholarship.

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ACKNOWLEDGEMENT
First and foremost, I would like to express my sincere gratitude to my supervisors, Dr.
Patrick Ngugi, Dr. Robert Arasa, and Dr. James Kahiri for givingme the required
guidelines all the way till I was through. My fellow classmates who assisted me in
various ways cannot be forgotten for their contribution had a positive impact in the
research study. Last but not the least, special thanks go to management of Jomo Kenyatta
University for availing current books and reference materials throughout the period of
study. Mr. Anthony D. Bojana deserves gratitude for editing the final work. I salute you
all.

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TABLE OF CONTENTS
DECLARATION............................................................................................................................ i
DEDICATION.............................................................................................................................. iii
ACKNOWLEDGEMENT ........................................................................................................... iv
TABLE OF CONTENTS ............................................................................................................. v
LIST OF FIGURES ...................................................................................................................... x
LIST OF TABLES ....................................................................................................................... xi
ABBREVIATIONS& ACRONYMS ......................................................................................... xii
DEFINITION OF TERMS........................................................................................................ xiii
LIST OF APPENDICES ............................................................................................................ xv
ABSTRACT ................................................................................................................................ xvi
CHAPTER ONE:INTRODUCTION .......................................................................................... 1
1.1 Background of the Study ..................................................................................................... 1
1.1.1 Effective Implementation of Procurement Practices ........................................................ 3
1.1.2 Procurement Practices in Kenya ....................................................................................... 4
1.1.3 Tertiary Public Training Institutions in Kenya ................................................................ 7
1.2 Statement of the Problem ...................................................................................................... 7
1.3 Objectives of the Study ........................................................................................................ 8
1.4 Hypotheses ........................................................................................................................... 9
1.5 Significance of the Study ................................................................................................... 10
1.6 Scope of the Study ............................................................................................................. 12
1.7 Limitations of the Study..................................................................................................... 12

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CHAPTER TWO:LITERATURE REVIEW ........................................................................... 13
2.1 Introduction ......................................................................................................................... 13
2.2 Theoretical Framework ....................................................................................................... 13
2.3 Conceptual Framework ...................................................................................................... 32
2.4 Empirical Review............................................................................................................... 36
2.4.1 Procurement Policies ....................................................................................................... 36
2.4.6 Effective Procurement Practices ..................................................................................... 62
2.5 Critique of the Existing Literature Related to Research Study ........................................ 65
2.6 Research Gaps ..................................................................................................................... 68
2.7 Summary ............................................................................................................................. 70
CHAPTER THREE: RESEARCH METHODOLOGY ......................................................... 71
3.1 Introduction ......................................................................................................................... 71
3.2 Research Design.................................................................................................................. 73
3.3 Population ........................................................................................................................... 74
3.4 Sample and Sampling Technique....................................................................................... 75
3.5 Data Collection Procedure .................................................................................................. 76
3.6 Pilot Study ......................................................................................................................... 77
3.6.1 Validity ............................................................................................................................ 78
3.7 Data Analysis and Presentation ......................................................................................... 79
3.8 Operationalization / Measurement of Variables ................................................................ 81

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CHAPTER FOUR: DATA ANALYSIS, DISCUSSION AND FINDINGS ........................... 83
4.1 Introduction ......................................................................................................................... 83
4.2 Response Rate ..................................................................................................................... 83
4.3 Reliability and validity tests................................................................................................ 84
4.3.1 Procurement Policies ....................................................................................................... 85
4.3.2 Inventory Management .................................................................................................... 86
4.3.3 Supplier Management ...................................................................................................... 87
4.3.4 Training ............................................................................................................................ 88
4.3.5 Information Communication Technology........................................................................ 89
4.3.6 Effective implementation of procurement practices ........................................................ 90
4.3.7 Multicollinearity .............................................................................................................. 90
4.4 Descriptive Statistics ........................................................................................................... 93
4.4.1 Background Information .................................................................................................. 93
4.4.2 Education Level of the Respondents ................................................................................ 93
4.4.3 Working Experience of the Respondents ......................................................................... 95
4.4.4 Institution Category ......................................................................................................... 96
4.4.5 Respondents from Respective Departments .................................................................... 96
4.4.6 Respondents’ Position in the Institution .......................................................................... 97
4.4.7 Procurement Policies ....................................................................................................... 98
4.4.8 Inventory Management .................................................................................................. 103
4.4.9 Supplier Management .................................................................................................... 106
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4.5 Training ............................................................................................................................ 110
4.5.1 Information Communication Technology...................................................................... 113
4.5.2 Effective implementation of procurement practices ...................................................... 116
4.6 Normality Test .................................................................................................................. 119
4.6.1 Regression Analysis .................................................................................................... 120
4.6.2 Regression Analysis on Procurement Policies ............................................................ 121
4.6.3 Regression Analysis on Inventory Management ......................................................... 124
4.6.4 Regression Analysis on Supplier Management ........................................................... 128
4.6.5 Regression Analysis on Training ................................................................................. 131
4.6.6 Regression Analysis on ICT ........................................................................................ 134
4.7 Combined Effect Model ................................................................................................... 137
4.8 Optimal Model ................................................................................................................ 142
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS ............ 146
5.1 Introduction ....................................................................................................................... 146
5.2 Summary of Major Findings ............................................................................................. 146
5.2.1 Procurement Policies and Effective Implementation of Procurement Practices ........... 147
5.2.2 Inventory Management and Effective Implementation of Procurement Practices ........ 147
5.2.3 Supplier Management and Effective Implementation of Procurement Practices .......... 148
5.2.4 Training and Effective Implementation of Procurement Practices ................................ 149
5.2.5 I.C.T and Effective Implementation of Procurement Practices ..................................... 149
5.2.6 Effective Implementation of Procurement Practices .................................................... 150
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5.3 Conclusions ....................................................................................................................... 151
5.4 Recommendations ............................................................................................................. 153
5.4.1 Knowledge gained for policy and practice .................................................................... 153
5.4.2 Areas for further research .............................................................................................. 153
REFERENCES .......................................................................................................................... 156
APPENDICES ........................................................................................................................... 164

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LIST OF FIGURES
Figure 2. 1 Linear Policy Model .................................................................................................. 16
Figure 2. 2 Just in Time Model .................................................................................................... 22
Figure 2. 3 Benchmarking Model ................................................................................................ 24
Figure 2. 4 Technology, Organization, and Environment Model ................................................ 31
Figure 2. 5 Conceptual Framework .............................................................................................. 33
Figure 4. 1 Education Level of the Respondents ......................................................................... 94
Figure 4. 2: Respondents’ Respective Departments .................................................................... 97
Figure 4. 3 Respondents Position in the Institution ..................................................................... 98
Figure 4. 4 Normal Q-Q Plot of effective implementation of procurement practices .............. 119
Figure 4. 5 Regression Model on Procurement Policies Vs Effective implementation ........... 122
Figure 4. 6 Regression Model on Inventory Management Vs Effective ................................ 125
Figure 4. 7 Regression Model on Supplier Management Vs Effective implementation ........... 128
Figure 4. 8 Regression Model on Training Vs Effective implementation ............................. 132
Figure 4. 9 Regression Model on ICT Vs Effective implementation ..................................... 135
Figure 4. 10 Optimal Model Conceptual Framework ................................................................ 145

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