Procurement practices and project performance ( A case of Ngali mining, 2015-2018

Abstract

Over the past decades’ procurement planning has been attracting great attention from practitioners, academicians and researchers Literature suggests that Procurement Planning is one of the primary functions of procurement with a potential to contribute to the success of operations and improved performance. This study therefore, sought to examine the relationship between procurement planning practices and procurement performance in state corporations. This study mainly depended on the Stakeholder theory, Grey system theory, Agency Theory and McNeil Rational theory. The target population of this study was 40 respondents. Census approach was used to carry out the study. To attain this objective, the study adopted a survey research design and data was collected using questionnaires with a modified Likert scale. The data-collecting instruments were subjected to pre-testing through pilot study using 20 respondents from Wolfram limited. district as they did not form part of the study sample during the main study. To ensure validity, member validation exercise was done where the respondent was given back a copy of the observations to provide a feedback. Content analysis was used in the analysis of qualitative data, while Statistical Package for Social Sciences (SPSS) Version 21 for windows was used as to analyze quantitative data. As this study is very sensitive, care was taken to seek authority and consent from relevant institutions and respondents respectively, when administering research tools. Data analysis show that procurement performance is explained by the independent variables (Cost Estimation, Quality Specification, Needs Assessment and Risk Management) at 59.2% of coefficient of determination. there were strong positive and significant effects between budget estimation and performance (β = .444; t = 1.815; p < 0.05). and Needs assessment (β = 1.075; t = 1.815; p < 0.05). There were positive effects of between risk management and performance (β = .230; t =. 850; p > 0.05). However, there was weak but significant effects between quality specification and performance (β = 1.231; t = 3.616; p < 0.05.). It is recommended that Ngali Mining group should improve the channel of information sharing and payment model. From the study there is a positive significant effect between procurement practices and performance that the model is a good fit for the data. Hence the study concludes that all the four (Ho1, Ho2, Ho3 and Ho4) null hypothesis are rejected hence accepting the alternative hypothesis. Through this study the researcher has gained a deeper insight on how organizations can achieve successful procurement planning and the benefits in doing so, but there are some areas in which the researcher believes more research is needed to fully understand the nature of procurement planning. The results of analysis show the effect on procurement planning and institutional performance. It is recommended that Ngali Mining group may improve the channel of information sharing and payment model. Public institutions may establish mechanisms by which the bidders may raise concerns about the way procurement is progressing which would significantly increase supplier confidence. The future research should also be carried out to explore variables affecting perceived service quality, ethics, transparency, procurement performance, and value for money in public institution procurement planning process. Key words: Procurement practices, project performance, Ngali Mining Word count: 515