INFLUENCE OF PROCUREMENT RISK MANAGEMENT ON PROCUREMENT PERFORMANCE IN PUBLIC UNIVERSITIES IN KENYA

Abstract

In the contemporary business environment procurement risk management is the panacea of operational and transactional impediments in public universities in Kenya. Over the years public universities in Kenya have faced immense challenges when undertaking upstream supply chain activities. These challenges comprise price fluctuations, logistical risks, volatility of demand and lack of visibility and control procedures. The backdrop of these phenomenon, have resulted to incomplete projects and legal ramifications in public universities in Kenya. This study explored the influence of procurement risk management in public universities in Kenya. Descriptive research survey design was adopted, whereby the target population comprised all public universities in Kenya. A census method formed the basis of the study and all the 31 chartered public universities were selected. A self-designed questionnaire was structured for the study which included closed-ended and open ended questions. Descriptive statistics measures of central tendency were used and statistical output was generated using SPSS version 22. Inferential statistics was also used to infer correlation analysis as well as multiple linear regression. The results indicated that procurement risk management and procurement performance had R of 0.440 and p-value of 0.000 at 95% confidence levels. The coefficient value was between 0.30 to 0.49 and therefore, this signified a medium correlation between procurement risk management and procurement performance. Further, the results indicated that, a unit change in procurement risk management would lead to change in procurement performance by 0.173 units. This implies that 1% change in procurement risk management leads to 17.3% change in procurement performance in public universities in Kenya ceteris paribus. The study recommends that institutions of higher learning in Kenya should establish risk management action plans to avert any crisis in the holistic supply chain process.