SUPPLIER DEVELOPMENT PRACTICES AND PROCUREMENT PERFORMANCE OF AVIATION COMPANIES IN NAIROBI CITY COUNTY, KENYA
Abstract
Supplier development initiatives play an important role in building buyer-supplier capacities to deal with social and economic performance. Supplier development is a critical collaboration that brings manufacturers and suppliers together on the path to achieving social, financial, and ecological progress that is sustainable. The main objective of the study was to examine the effect of supplier development practices and procurement performance of airline industry in Nairobi, Kenya. The specific objectives were to examine the effect of supplier appraisal and partnership. The study was guided by two-factor theory of motivation and social exchange theory. This study will adopt a descriptive research design. The target population of this study was 43 local airline companies in the aviation industry. The unit of observation was 172 senior procurement staff (4 Chief Procurement Officers, 4 Directors of Procurement, 4 Procurement Managers, and 4 Procurement Analysts) hence 172 senior staff in the procurement departments. Census was used hence all the 172 senior procurement staff were considered as the sample size. The study used questionnaires for data collection. A pilot study was conducted with 17 senior procurement staff representing 10% of sample. The study used content and construct validity. Data was analyzed using SPSS Version 28. The results demonstrate that supplier appraisal practices play a crucial role in shaping the procurement performance of aviation companies in Nairobi, Kenya. Robust supplier appraisal methods, including desk appraisals, evaluation criteria, and due diligence processes, contribute to enhanced supplier reliability, sustainability, and overall procurement effectiveness within these companies. The findings highlight the critical role of supplier partnership strategies in shaping the procurement performance of aviation companies in Nairobi, Kenya. In light of the significant impact of supplier appraisal practices on procurement performance, it is recommended that aviation companies implement robust and transparent supplier evaluation criteria and processes. To leverage the potential of supplier partnerships in enhancing procurement performance, it is recommended that aviation companies foster a culture of collaboration, communication, and mutual trust with their suppliers
Key Words; Supplier Development Practices, Supplier Appraisal, Supplier Partnership, Procurement Performance of Aviation Companies
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