THE JOINT INTERVENING EFFECT OF PLANNING FUNCTION OF MANAGEMENT AND MODERATING EFFECT OF REGULATORY FRAMEWORK ON THE RELATIONSHIP BETWEEN INTERNATIONAL PROCUREMENT PRACTICES AND SUPPLY CHAIN PERFORMANCE OF ENERGY DEVELOPMENT AGENCIES IN KENYA
Abstract
Background of the Study: Kenya has regularly experienced frequent breaks in the supply of energy products over the years despite the state spending about Kshs. 234 billion per year in the energy sector. This study contributes to the body of knowledge by establishing the relationship between international procurement practices and supply chain performance of energy development agencies in Kenya, as well as shedding light on the intervening role of planning function of management and moderating influence of regulatory framework on this relationship.
Objective of the Study: The objective was establish if the joint intervening effect of planning function of management and moderating effect of regulatory framework on the relationship between international procurement practices and the supply chain performance of energy development agencies in Kenya is significantly different from their separate effect. The study’s theoretical review is based on four theories that are relevant to international procurement practices and supply chain performance. These theories include: social network approach theory, Fayol classical theory of management, contract theory and bullwhip theory.
Methodology: The study adopted a cross-sectional survey research design aimed at 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 (2019). These agencies include: Rural Electrification and Renewable Energy Corporation (REREC), Geothermal Development Company (GDC), Kenya Electricity Transmission Company (KETRACO), Kenya Generation Company (KENGEN) and Kenya Power, Lighting Company (KPLC) and Nuclear Power and Energy Agency (NUPEA). The study’s respondents was drawn from all the 224 top and middle managers from the energy development agencies. Yamane formula was used to obtain a sample size of 144. The study used stratified random sampling to pick the 144 respondents. Primary data was obtained using self-administered questionnaires. The questionnaire was made up of closed questions relating to the study’s objectives.
Findings: The study found that there was significant relationship between international procurement practices and supply chain performance of energy development agencies in Kenya. There was a partial intervening effect of planning function of management in the relationship between international procurement practices and supply chain performance. 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. Lastly, the joint intervening effect of planning function of management and moderating effect of regulatory framework on the relationship between international procurement practices and the supply chain performance of energy development agencies in Kenya was different from their separate effects.
Conclusions and recommendations: The study recommended that the management of energy corporations should put measures in place to ensure that all the drawn ethical policies and codes are adhered to by all the supply chain staff as well as by the suppliers that they deal with. For the best supply chain performance in the energy corporations, the management should maintain the highest standards of integrity in its everyday dealings.
Keywords: International Procurement Practices, Planning Function of Management, Regulatory Framework Supply Chain Performance, Energy Development Agencies & Kenya.
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