The Effect of Strategic Procurement Practices on Organization Performance in the Public Sector

Abstract

The study aimed at assessing the effect of strategic procurement practices on organizations’ performance in the public sector: A study of the Government Procurement Services Agency (GPSA). The Specific Objectives of the Study were: To assess the effect of contract management which affects organizations' performance in the public sector, ii. to determine the impact of resource allocations on organizations' performance in the public sector iii. To find out the impact of agency-supplier relationship management on an organization’s performance in the public sector. The study adopted both quantitative and qualitative approaches to data collection and analysis in which sampling techniques included convenience, snowball and purposive sampling, and explanatory cross-sectional research design. Data collection methods included interviews (semi-structured interviews), questionnaires, and documentary reviews. The collected data was analyzed through thematic analysis and Statistical Packages of Social Science (SPSS) version 21 software. A sample of 160 respondents was used. Study findings revealed that contract management has been applied in their organization in which the majority (33.1percent) claimed to have contract management applied to a great extent, 31.9percent said it has been applied to a lesser extent, 17.5percent claimed to have seen contract management applied to a moderate extent, 13.1percent had witnessed contract management applied to a very great extent and very few (4.4percent) had not at all seen contract management being applied in any ways of implementing strategic procurement principles. Also, study findings through interviews revealed that, in most public organizations, buyer-supplier relationship management has been enhanced through various strategies and initiatives. It was concluded that there is a connection between procurement procedures and the performance of an organization. Proper structures and systems in procurement ensured transparency, and accountability, reduced costs, and improved quality and specifications. Continuity of the workforce greatly contributed to organizational performance. It is therefore recommended that, the top-level to lower-level employees should be involved in the formulation and development of the procurement plans so as to make the process of implementation easier and acceptable to all employees