IDEAS home Printed from https://ideas.repec.org/a/bjc/journl/v7y2020i8p116-128.html
   My bibliography  Save this article

Performance of Procurement Methods and Practices in Faith – Based Organizations in Kenya

Author

Listed:
  • Nomelif Kemei

    (Department of Management, School of Business, University of Eastern Africa, Baraton, P.O. Box 2500 – 30100 Eldoret, Kenya)

  • Oyaro Jackson Ong’eta

    (Department of Management, School of Business, University of Eastern Africa, Baraton, P.O. Box 2500 – 30100 Eldoret, Kenya)

  • Biru Sara

    (Department of Management, School of Business, University of Eastern Africa, Baraton, P.O. Box 2500 – 30100 Eldoret, Kenya)

  • Omondi Richard Mc’Otieno

    (Department of Management, School of Business, University of Eastern Africa, Baraton, P.O. Box 2500 – 30100 Eldoret, Kenya)

Abstract

Faith – based organizations in Kenya have grown in terms of their operations and systems. This growth has necessitated the establishment of various strategic business units aimed at improving their performance and productivity. One of the key strategic business units that has been adopted by most of these organizations is the procurement units. The procurement function is considered as one of the key functional areas of any organization. This is due to its strategic position in enhancing the performance of the organization both in terms of improving their financial performance as well as managing the quality of service and products by the organizations. This study by adopting the descriptive research design and involving procurement staff and committee members from 18 institutions, and by using self – constructed survey questionnaire aimed at evaluating the performance effectiveness of the procurement methods and practices as used in the faith-based organizations in Kenya by addressing the following research questions: What is the place of procurement in the operations of the organizations?; What are the procurement methods used in the organizations under the category of Competitive methods and Non-competitive methods; What is the level of effectiveness of the procurement practices used in the organizations based on Costs of procurement, Quality of procurement and Risk mitigation ability; Is there a significant relationship between the place of procurement in the organization and the level of effectiveness of procurement practices and Is there a significant relationship between the assessment of the relationship between the organization and its suppliers and the place of procurement in the organization and the level of effectiveness of procurement practices. Descriptive statistical tools including frequencies, percentages, means and standard deviations were used to analyze the data. Additionally, Pearson product-moment correlation coefficient was used in testing the null hypothesis. The study established that procurement is well placed, competitive procurement methods are mostly used compared to the non-competitive methods. There was a significant positive and moderate relationship between place of procurement in the organization and the level of effectiveness of procurement practices (r = 0.309; P = 0.012

Suggested Citation

  • Nomelif Kemei & Oyaro Jackson Ong’eta & Biru Sara & Omondi Richard Mc’Otieno, 2020. "Performance of Procurement Methods and Practices in Faith – Based Organizations in Kenya," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 7(8), pages 116-128, August.
  • Handle: RePEc:bjc:journl:v:7:y:2020:i:8:p:116-128
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijrsi/digital-library/volume-7-issue-8/116-128.pdf
    Download Restriction: no

    File URL: https://www.rsisinternational.org/virtual-library/papers/performance-of-procurement-methods-and-practices-in-faith-based-organizations-in-kenya/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. de Mel, Suresh & McKenzie, David & Woodruff, Christopher, 2014. "Business training and female enterprise start-up, growth, and dynamics: Experimental evidence from Sri Lanka," Journal of Development Economics, Elsevier, vol. 106(C), pages 199-210.
    2. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    3. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    4. Teresa Wu & Dan Shunk & Jennifer Blackhurst & Rajendra Appalla, 2007. "AIDEA: a methodology for supplier evaluation and selection in a supplier-based manufacturing environment," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 11(2), pages 174-192.
    5. Melinda Muth & Lex Donaldson, 1998. "Stewardship Theory and Board Structure: a contingency approach," Corporate Governance: An International Review, Wiley Blackwell, vol. 6(1), pages 5-28, January.
    6. Humphry Hung, 1998. "A typology of the theories of the roles of governing boards," Corporate Governance: An International Review, Wiley Blackwell, vol. 6(2), pages 101-111, April.
    7. Thomas Clarke, 1998. "Research on Corporate Governance," Corporate Governance: An International Review, Wiley Blackwell, vol. 6(1), pages 57-66, January.
    8. Sathit Parniangtong, 2016. "Strategic Sourcing: Concepts, Principles and Methodology," Management for Professionals, in: Supply Management, chapter 2, pages 5-14, Springer.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Saha Rupjyoti & Kabra Kailash Chandra, 2019. "Does corporate governance influence firm performance? Evidence from India," Economics and Business Review, Sciendo, vol. 5(4), pages 70-89, December.
    2. Michele Fabrizi, 2015. "Struttura di governance e performance nelle aziende venete: un?analisi empirica," ECONOMIA E SOCIET? REGIONALE, FrancoAngeli Editore, vol. 0(3), pages 122-142.
    3. Jeanjean, Thomas & Stolowy, Hervé, 2009. "Determinants of board members' financial expertise -- Empirical evidence from France," The International Journal of Accounting, Elsevier, vol. 44(4), pages 378-402, December.
    4. Yu, Mei & Ashton, John K., 2015. "Board leadership structure for Chinese public listed companies," China Economic Review, Elsevier, vol. 34(C), pages 236-248.
    5. Michael Pirson & Shann Turnbull, 2011. "Toward a More Humanistic Governance Model: Network Governance Structures," Journal of Business Ethics, Springer, vol. 99(1), pages 101-114, March.
    6. Hunjra, Ahmed Imran & Jebabli, Ikram & Thrikawala, Sujani Sudhara & Alawi, Suha Mahmoud & Mehmood, Rashid, 2024. "How do corporate governance and corporate social responsibility affect credit risk?," Research in International Business and Finance, Elsevier, vol. 67(PA).
    7. Nguyen, Tuan & Locke, Stuart & Reddy, Krishna, 2014. "A dynamic estimation of governance structures and financial performance for Singaporean companies," Economic Modelling, Elsevier, vol. 40(C), pages 1-11.
    8. Jorge Andrés Munoz Mendoza & Sandra María Sepúlveda Yelpo & Carmen Lissette Veloso Ramos, 2018. "Effects of Corporate Policies and Governance Practices on Ownership Structure: Evidence from Chilean Firms," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 10(2), pages 269-286, November.
    9. Roberto Fernández-Gago & Laura Cabeza-García & Mariano Nieto, 2016. "Corporate social responsibility, board of directors, and firm performance: an analysis of their relationships," Review of Managerial Science, Springer, vol. 10(1), pages 85-104, January.
    10. S. Subramanian, 2018. "Stewardship Theory of Corporate Governance and Value System: The Case of a Family-owned Business Group in India," Indian Journal of Corporate Governance, , vol. 11(1), pages 88-102, June.
    11. Rodrigues, Ricardo & Samagaio, António & Felício, Teresa, 2020. "Corporate governance and R&D investment by European listed companies," Journal of Business Research, Elsevier, vol. 115(C), pages 289-295.
    12. Paolo Roffia & Virginia Simón-Moya & Javier Sendra García, 2022. "Board of director attributes: effects on financial performance in SMEs," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1141-1172, September.
    13. Thomas Gstraunthaler & János Lukács & Marcel Steller, 2008. "The Board of Directors and its Role in the Corporate Governance System - Considerations about the Control Model - A Research Note," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 1(1), pages 37-54, April.
    14. Ghosh, Saibal, 2018. "Governance reforms and performance of MENA banks: Are disclosures effective?," Global Finance Journal, Elsevier, vol. 36(C), pages 78-95.
    15. Mohd Saad, Noriza & Haniff, Mohd Nizal & Ali, Norli, 2020. "Corporate governance mechanisms with conventional bonds and Sukuk’ yield spreads," Pacific-Basin Finance Journal, Elsevier, vol. 62(C).
    16. Achleitner, Ann-Kristin & Kaserer, Christoph & Kauf, Tobias, 2012. "The dynamics of voting ownership in lone-founder, family-founder, and heir firms," Journal of Family Business Strategy, Elsevier, vol. 3(2), pages 79-96.
    17. Saïsset, L.A. & Couderc, J.P., 2013. "Les trois dimensions de la gouvernance coopérative : à la recherche d'un équilibre instable. Le cas des caves coopératives en Languedoc-Roussillon [France]," Working Papers MoISA 201302, UMR MoISA : Montpellier Interdisciplinary center on Sustainable Agri-food systems (social and nutritional sciences): CIHEAM-IAMM, CIRAD, INRAE, L'Institut Agro, Montpellier SupAgro, IRD - Montpellier, France.
    18. He, Liyu & He, Rong & Evans, Elaine, 2020. "Board influence on a firm’s long-term success: Australian evidence," Journal of Behavioral and Experimental Finance, Elsevier, vol. 27(C).
    19. Hussein Abedi Shamsabadi & Byung-Seong Min & Richard Chung, 2016. "Corporate governance and dividend strategy: lessons from Australia," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 12(5), pages 583-610, October.
    20. Anis Mnif, 2009. "Board Of Directors And The Pricing Of Initial Public Offerings (Ipos): Does The Existence Of A Properly Structured Board Matter? Evidence From France," Post-Print halshs-00459257, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bjc:journl:v:7:y:2020:i:8:p:116-128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Renu Malsaria (email available below). General contact details of provider: https://rsisinternational.org/journals/ijrsi/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.