MODERATING EFFECT OF REGULATORY FRAMEWORK IN THE RELATIONSHIP BETWEEN INTERNATIONAL PROCUREMENT PRACTICES AND SUPPLY CHAIN PERFORMANCE OF ENERGY DEVELOPMENT AGENCIES IN KENYA
Abstract
Background of the Study: The regulatory framework comprises of laws and regulations that regulate both public and private sector procurement practitioners and strives to professionalize procurement practice. In many countries today, public procurement has become an issue of public attention and debate, and has been subjected to reforms, restructuring, laws and regulations.
Objective of the Study: This study sought to establish the moderating effect of regulatory framework in the relationship between international procurement practices and supply chain performance of energy development agencies in Kenya.
Methodology: Positivistic philosophy approach was adopted for the study. The study adopted a cross-sectional survey research design with an aim of collecting large number of quantitative data at a point in time so as to establish patterns of value addition in the Kenyan energy sector. The study’s target population consisted of six energy development agencies in Kenya as outlined by the Ministry of energy (2018). The unit of analysis was the energy development agencies. The study purposely sampled only the top managers and middle managers since they are the key individuals handling the strategic issues within the departments. The study used primary data obtained using self-administered questionnaires. Quantitative data was analyzed using Statistical Package for Social Sciences (SPSS).
Findings: Since the P value of the interaction term (IPP*RF) is 0.000< 0.05 and the R2 increased from 55% to 60% and 70% after the interaction term and thus, we conclude that regulatory framework moderates the relationship between international procurement practices and supply chain performance of energy development agencies in Kenya. The study thus rejected the null hypothesis and adopted the alternative hypothesis that there is a significant moderating effect of regulatory framework in the relationship between international procurement practices and supply chain performance of energy development agencies in Kenya.
Conclusions and Recommendations: The study concluded that there was a significant moderating effect of regulatory framework in the relationship between international procurement practices and supply chain performance of energy development agencies in Kenya. In addition from the responses, the study found that the agencies has open contracting requirements between procurement personnel and suppliers community. The agencies has clearly expressed and readily available policies, procedures and regulations from the energy sector and the tax regime in Kenya is favorable for international public procurement by the agency.
Keywords: Regulatory Framework, International Procurement Practices, Supply Chain Performance, Energy Development Agencies & Kenya.
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