Abstract:
Purpose: This study examined the effect of supplier development on procurement
performance of steel manufacturing firms within Nairobi City County, Kenya.
Methodology: Mixed method research design was adopted. A census with a population of
360 employees within the 10 steel firms was conducted. Questionnaires were used to collect
primary data. SPSS V.26.0 and SmartPLS 4.0 programs were used to analyze the data and test
for both direct and joint effects of the variables.
Results: Results showed that supplier selection (β=0.50, t=8.309, p<0.05), supplier
partnership (β=0.136, t=2.872, p<0.05), and supplier evaluation (β=0.127, t=2.884, p<0.05)
have a positive significant effect on the procurement performance. Supplier training (β= -
0.086, t=1.683, p>0.05) had an insignificant effect on procurement performance therefore its
implications for refining procurement strategies warrant further exploration.
Unique contribution to policy, theory and practice: This study enriches both policy and
practice by illuminating key strategies that steel manufacturing firms in Nairobi City County,
Kenya can adopt to enhance their procurement performance. The implications are farreaching, offering practitioners valuable insights into the pivotal role of supplier selection,
collaborative partnerships, and robust evaluation mechanisms. Moreover, the study opens
avenues for further exploration, encouraging deeper research into the nuanced dynamics of
supplier training and its potential to contribute to procurement optimization.
