Supplier Development and Procurement Performance of Steel Manufacturing Firms in Nairobi City County, Kenya

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.