Influence Of Vendor Base Optimization And Rationalization On Performance Of Parastatals In Kenya

Purpose: The purpose of the study was to examine the influence of vendor base optimization and rationalization on the performance of parastatals in Kenya with an aim of making recommendations. Methodology: . The study employed a descriptive research design, targeting heads and deputy heads of procurement in parastatals. The researcher prefers this method because it allows an in-depth study of the subject. Data was collected using self-administered questionnaires. The data collected was analyzed by use of descriptive and inferential statistics. A multiple regression model was used to show the relationship between the dependent variable and the independent variables. The data generated was keyed in and analyzed by use of Statistical Package of Social Sciences (SPSS) version 24 to generate information which will be presented using charts, frequencies and percentages. Results and conclusion: The response rate of the study was 91% .The independent variables reported R value of 0.846 indicating that there was perfect relationship between dependent variable and independent variables. R square value of 0.715 means that 71.5% of the corresponding variation in performance of parastatals in Kenya can be explained or predicted by (triangle approach, twenty/eighty approach, spend categorization method and competency staircase method) which indicated that the model fitted the study data. The results of regression analysis revealed that there was a significant positive relationship between dependent variable and independent variable at (β=0.715), p=0.000 <0.05).The findings of the study indicated that triangle approach, twenty/eighty approach, spend categorization method and competency staircase method have a positive relationship with performance of parastatals in Kenya. Policy recommendation: The study recommended that parastatals should embrace vendor base optimization and rationalization so as to improve performance and further researches should te carried out in other institutions to find out if the same results can be obtained.