Influence of procurement risk management practices on supply chain performance of parastatals in Kenya.

Abstract

Abstract This research explored how influence of procurement risk management plays a role in parastatals’ supply chain performance in Kenya. Managing risks in procurement supports efficiency, cuts down on surprises and makes public procurement more economical. Nevertheless, parastatals in Kenya remain affected by long-running issues such as corruption, inefficiency and delays in making purchases which weaken their performance in the supply chain. The project mainly studied four main methods for managing risks in procurement: identifying risks, assessing them, taking action to reduce risks and observing risks. They were appraised against tools used to trace supply chain performance, including economic efficiency, quality and how briskly stocks are processed. According to the Resource-Based View (RBV), Transaction Cost Economics (TCE) and Contingency Theory, I opted for a cross-sectional descriptive design using mixed methods. The study used questionnaires to collect structured quantitative data from 133 procurement professionals at different levels in selected parastatals. Qualitative insights were obtained through semi-structured interviews. The study used descriptive statistics, Pearson correlation, multiple regression analysis and a method known as thematic content analysis on the qualitative side. Data showed that all four risk management activities risk identification, assessment, mitigation and monitoring had a significant and constructive effect on supply chain performance. The strength of risk identification and monitoring was closely linked to how well the supply chain performed and reacted. The research also indicated that managing risks effectively usually meant better control over costs, better-quality products bought and better use of existing stock. Besides, companies that monitored risks carefully and assessed their suppliers’ risks thoroughly experienced fewer failures in procurement. The analysis found that excellent risk management within procurement is necessary for strengthening the performance of parastatals in Kenya. The study proposed that policymakers and procurement staff embed advanced tools for assessing risks, strengthen ongoing surveillance methods and coordinate procurement efforts with the current and future needs of the organization and the environment. Such actions could both reduce risks and strengthen supply chain stability, transparency and the purchasing of better-value products. This study gives useful findings and contextual details about risk management in government procurement from the point of view of Kenyan parastatals, supporting both further academic studies and improvements in policy