NFLUENCE OF SUPPLIER SELECTION CRITERIA ON PROCUREMENT PERFORMANCE OF PARASTATALS IN MOMBASA COUNTY

Abstract

This research aimed to explore the influence of supplier selection criteria on procurement performance of parastatals in Mombasa County. The study was guided by the following specific objectives; To determine the influence of Supplier Responsiveness, Supplier Reliability, Supplier Quality and Supplier Cost on procurement performance of parastatals in Mombasa County. The study draws from several established theories in procurement, including Supplier Selection Decision Theory, Resource Dependency Theory, Transaction Cost Theory, and Means-End Theory. Targeting a group of 308 individuals employed in parastatals in Mombasa County, 174 valid responses were collected, adhering to Yamane allocation sample equations to determine the sample size. Data collection involved the distribution of questionnaires, followed by rigorous editing to ensure accuracy and consistency. Descriptive statistics were employed for analysis, supported by multiple regression analysis to assess the influence of supplier selection criteria on procurement performance. The diagnostic tests conducted in this study aimed to assess several key assumptions underlying regression analysis. Autocorrelation was evaluated using the Durbin-Watson test, which indicated presence of independence of errors. Multicollinearity was examined using variance inflation factor and no multicollinearity issues were present. Normality was assessed visually using P-P plots confirming the normal distribution of residuals. Linearity was confirmed through scatter plots and ANOVA analysis, demonstrating linear relationships between independent and dependent variables. Homoscedasticity was verified by examining the plot of studentized residuals against unstandardized predicted values, showing no evidence of heteroscedasticity. These diagnostic tests validate the reliability of regression analysis results and support the influence of supplier selection criteria on procurement performance. The study achieved a response rate of 116 which is 66.7% which is dimmed excellent. The study identified strong positive associations between procurement performance and four key supplier-related variables: responsiveness, reliability, quality, and cost. Supplier responsiveness and reliability were consistently viewed as crucial, with minimal variance in respondent opinions, emphasizing their role in ensuring efficient and effective procurement processes. Supplier quality also positively influenced procurement performance. Supplier cost was similarly linked to improved procurement outcomes, but with a broader range of opinions, suggesting the need for a balanced approach that considers cost alongside other critical factors like quality and reliability. Additionally, the research suggests potential future investigations, including exploring alternative supplier selection criteria's influence on organizational performance across different contexts