Effect Of Procurement Contract Determinants On Organizational Performance: A Case Of Nairobi County.

Abstract

The overall aim of this study was to investigate the effect of public procurement contract determinants on organizational performance. The study followed a descriptive research design targeting the Nairobi County officials. With aid of 10 researcher assistants, the researcher and assistants targeted 87 finance procurement officers from Nairobi county government using semi structured questionnaires, administered through drop and pick later method, and obtained 81 completed questionnaires - 93.10% response rate. The data was organized in excel spread sheets and analyzed using excel spread sheets and SPSS version 20. Regarding the effect of internal procurement processes on organizational performance, the sampled respondents stated that internal procurement processes do influence organizational performance majorly because procurement processes do enhance purchase quality, enhances controls in the organization, and manages possible self-interests, and increases efficiency and effectiveness. Regarding the effect of policy/regulatory framework on organizational performance, the respondents explained that policy and regulatory framework influences organizational performance because it creates a level playing field, shapes the environment for decision making, acts as a guide for the employees, upholds standards of quality and established parameters for monitoring and evaluation. Regarding the effect of leadership and management support on organizational performance, the respondents said that the procurement leadership and management does influence performance in their organization because; leaders are the custodians of morals in the organization, they provide direction to the organization, they ought to encourage and guide the junior officers to what is expected and are the main decision makers in an organization. Regarding the effect of ICT infrastructure support on organizational performance the respondents explained that ICT; enhances efficiency, monitoring and control, makes work easy, enhances communication and service delivery. The regression results regression results established a strong positive relationship between dependent variable organizational performance and the independent variables; Internal Procurement Processes, Regulatory Framework, Leadership and Management Support and ICT Infrastructure because the coefficient of determination (R) was 0.867 and correlation coefficient (R-Square) as 0.752. The study concludes that public procurement contract determinants do influence performance to a great extent. Organizations should eliminate inefficient and ineffective obstacles and challenges in the procurement process which cause wastage of resources and inhibit performance. Top leaders should cheer their team towards doing the right thing. Appropriate ICT infrastructure for procurement processes in bidding, technical and financial evaluation and monitoring should be supported by top leadership. Also, necessary structures to promote integrity and accountability should be upheld.