IDEAS home Printed from https://ideas.repec.org/a/hur/ijarbs/v7y2017i2p507-520.html
   My bibliography  Save this article

Influence of Procurement Capabilities on Firm Performance of Manufacturing Entities in Kenya

Author

Listed:
  • Eric Namusonge
  • Elegwa Mukulu
  • Mike Iravo

Abstract

Procurement is a dynamic function that is crucial to the productivity and general performance of a manufacturing entity. The purpose of manufacturing is to produce value in form of products and services, through different processes and activities, which are performed by a network of organizations both upstream and downstream. These processes form an integrated supply chain where raw materials are converted into final finished products for the end consumer. In order to realize successful performance, the management of manufacturing entities must have a holistic comprehension of procurement and implement it accordingly. Therefore, the objective of this study was to investigate the influence of procurement capabilities on firm performance of manufacturing entities in Kenya. The population of interest for this study was manufacturing firms within Nairobi and its environs. A sample of 69 manufacturing entities was randomly selected to participate in this study. Data was collected using questionnaire. Descriptive and inferential statistics was used aided by Statistical Packages for Social Sciences version 24 to compute the response. The study recommends that the management of manufacturing entities should exploit procurement capabilities on the day to day operation with the aim of ensuring financial viability and a competitive edge over other market competitors thus attaining superior firm performance.

Suggested Citation

  • Eric Namusonge & Elegwa Mukulu & Mike Iravo, 2017. "Influence of Procurement Capabilities on Firm Performance of Manufacturing Entities in Kenya," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(2), pages 507-520, February.
    • Handle: RePEc:hur:ijarbs:v:7:y:2017:i:2:p:507-520
    as

    Download full text from publisher

    File URL: http://hrmars.com/hrmars_papers/Influence_of_Procurement_Capabilities_on_Firm_Performance_of_Manufacturing_Entities_in_Kenya.pdf
    Download Restriction: no
    File URL: http://hrmars.com/hrmars_papers/Influence_of_Procurement_Capabilities_on_Firm_Performance_of_Manufacturing_Entities_in_Kenya.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. James R. Tybout, 2000. "Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 11-44, March.
    2. Beske, Philip & Land, Anna & Seuring, Stefan, 2014. "Sustainable supply chain management practices and dynamic capabilities in the food industry: A critical analysis of the literature," International Journal of Production Economics, Elsevier, vol. 152(C), pages 131-143.
    3. David J Teece, 2014. "A dynamic capabilities-based entrepreneurial theory of the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(1), pages 8-37, January.
    4. Joe Miemczyk & Thomas Johnsen & Monica Macquet, 2012. "Sustainable purchasing and supply management: a structured literature review of definitions and measures at the dyad, chain and network levels," Post-Print hal-00858680, HAL.
    5. Hee‐Jae Cho & Vladimir Pucik, 2005. "Relationship between innovativeness, quality, growth, profitability, and market value," Strategic Management Journal, Wiley Blackwell, vol. 26(6), pages 555-575, June.
    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. Philipp Sauer & Stefan Seuring, 2018. "A three-dimensional framework for multi-tier sustainable supply chain management," Post-Print hal-03926114, HAL.
    2. Mejías, Ana M. & Bellas, Roberto & Pardo, Juan E. & Paz, Enrique, 2019. "Traceability management systems and capacity building as new approaches for improving sustainability in the fashion multi-tier supply chain," International Journal of Production Economics, Elsevier, vol. 217(C), pages 143-158.
    3. André Tchokogué & Jean Nollet & Nathalie Merminod & Gilles Paché & Véronique Goupil, 2018. "Is Supply's Actual Contribution to Sustainable Development Strategic and Operational?," Business Strategy and the Environment, Wiley Blackwell, vol. 27(3), pages 336-358, March.
    4. Philipp C. Sauer & Stefan Seuring, 2023. "How to conduct systematic literature reviews in management research: a guide in 6 steps and 14 decisions," Review of Managerial Science, Springer, vol. 17(5), pages 1899-1933, July.
    5. Ferreira, Jorge & Coelho, Arnaldo & Moutinho, Luiz, 2020. "Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation," Technovation, Elsevier, vol. 92.
    6. Vidyadhar V. Gedam & Rakesh D. Raut & Nishant Agrawal & Qingyun Zhu, 2023. "Critical human and behavioral factors on the adoption of sustainable supply chain management practices in the context of automobile industry," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 120-133, January.
    7. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    8. Mary Amiti & Jozef Konings, 2007. "Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia," American Economic Review, American Economic Association, vol. 97(5), pages 1611-1638, December.
    9. Julia M. Puaschunder, 2019. "Artificial Intelligence Market Disruption," Proceedings of the 13th International RAIS Conference, June 10-11, 2019 01 JP, Research Association for Interdisciplinary Studies.
    10. Gunasekaran, Angappa & Irani, Zahir & Choy, King-Lun & Filippi, Lionel & Papadopoulos, Thanos, 2015. "Performance measures and metrics in outsourcing decisions: A review for research and applications," International Journal of Production Economics, Elsevier, vol. 161(C), pages 153-166.
    11. Heira Georgina Valdez-Bocanegra & Gonzalo Maldonado-Guzmán & Carmen Castrejón-Mata, 2020. "The Entrepreneurial Orientation and its Impact on Competitiveness and Growth: Empirical Evidence in the State of Aguascalientes in Mexico," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 10(3), pages 1-6.
    12. Carlson, Laura A. & Bitsch, Vera, 2018. "Social sustainability in the ready-made-garment sector in Bangladesh: an institutional approach to supply chains," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(2), March.
    13. Scott, James & Ho, William & Dey, Prasanta K. & Talluri, Srinivas, 2015. "A decision support system for supplier selection and order allocation in stochastic, multi-stakeholder and multi-criteria environments," International Journal of Production Economics, Elsevier, vol. 166(C), pages 226-237.
    14. Li, Linjie & Liu, Xiaming & Yuan, Dong & Yu, Miaojie, 2017. "Does outward FDI generate higher productivity for emerging economy MNEs? – Micro-level evidence from Chinese manufacturing firms," International Business Review, Elsevier, vol. 26(5), pages 839-854.
    15. Koski, Heli & Kretschmer, Tobias, 2010. "New product development and firm value in mobile handset production," Information Economics and Policy, Elsevier, vol. 22(1), pages 42-50, March.
    16. Anita Ciunova-Shuleska & Christian Nedu Osakwe & Nikolina Palamidovska-Sterjadovska, 2016. "Complementary impact of capabilities and brand orientation on SMBs performance," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(6), pages 1270-1285, November.
    17. Jun Hong Park & Sang Ho Kook & Hyeonu Im & Soomin Eum & Chulung Lee, 2018. "Fabless Semiconductor Firms’ Financial Performance Determinant Factors: Product Platform Efficiency and Technological Capability," Sustainability, MDPI, vol. 10(10), pages 1-22, September.
    18. Luc Laeven & Christopher Woodruff, 2007. "The Quality of the Legal System, Firm Ownership, and Firm Size," The Review of Economics and Statistics, MIT Press, vol. 89(4), pages 601-614, November.
    19. Younès El Manzani & Mohamed Larbi Sidmou & Jean-Jack Cegarra, 2018. "Does IS0 9001 quality management system support product innovation? An analysis from the sociotechnical systems theory," Post-Print hal-03080217, HAL.
    20. Lullit Getachew & Robin C. Sickles, 2007. "The policy environment and relative price efficiency of Egyptian private sector manufacturing: 1987|88-1995|96," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(4), pages 703-728.

    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:hur:ijarbs:v:7:y:2017:i:2:p:507-520. 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: Hassan Danial Aslam (email available below). General contact details of provider: http://hrmars.com/index.php/pages/detail/IJARBSS .

    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.