Influence of Supplier selection Criteria on Performance of Public Corporations in Kenya: A case of Water Resources Authority

Abstract

Supplier selection criteria have in the recent past presented a dilemma in the public and private procurement processes. Water Resource Authority (WRA) as one of the corporations in Kenya has experienced shortfalls in performance amidst the implementation of procurement plans over the past several years. This study aims to establish the influence of supplier selection criteria on the performance of public corporations in Kenya, using the case of the WRA. The specific objectives of the study were: to establish the influence of supplier regulatory compliance assessment on the performance of the WRA, to find out the influence of E-procurement capacity, to determine the influence of supplier quality assurance, and to determine the influence of management capacity on organizational performance of the Water Resources Authority (WRA). The study adopted a descriptive case study design. The study further employed a census survey methodology targeting all the 55 members of the target population which included all the senior WRA departmental heads and other administrative staff. A closed-ended questionnaire was used for primary data collection. The study carried out a pilot test of the study involving 10 research subjects on the research instrument before administering the instrument to the entire study population. The questionnaires were emailed to the respondents through their official emails. The respondents filled and returned the filled questionnaires in the same format. This was because of the COVID 19 situation in Kenya. The data collected were analyzed using SPSS and presented using tables and descriptive statistics. The study findings showed a significant influence of supplier regulation compliance on the performance of the Water Resources Authority. The study also established a significant positive correlation between E-procurement compliance and the performance of the Water Resources Authority. Additionally, the study established that there exited a significant influence of supplier quality assurance and supplier management capacity on the performance of the Water Resources Authority. The significance of the study is that it would inform the WRA’s board of management decision-making organs to inform future decisions. Additionally, the knowledge derived would be cascaded downwards to the regional implementing WRA branches for sound supplier selection criteria practices. Furthermore, the study was found to be critical towards enriching the body of knowledge on supplier selection criteria to the Water Resources Authority and Kenyan public Institutions as a source of literature review. This study recommended that the Water Resources Authority should tighten its hold on suppliers to comply fully with public procurement regulations requirements by all its suppliers and that the Water Resources Authority should ensure increased E-procurement capacity of its suppliers for improved performance. Additionally, the study concluded that the WRA should work on subjecting their suppliers to continuous quality assurance checks for increased customer satisfaction and effectiveness. Finally, Water Resource Authority should have a serious requirement on the supplier management capacity as a pre-qualification for selection for improved deliverables on the part of suppliers for improved performance.