Relationship between Strategic Partnership Sourcing and Procurement Performance of James Finlay Kenya Limited in Bomet County Kenya

Abstract

Procurement practice is charged with adoption of sourcing strategies to radically improve performance in organizations. Despite the importance of sourcing strategies, a culture of noncompliance by some organizations and lack of sound procurement systems has contributed to poor procurement performance. James Finlay Kenya Limited continues to face major challenges in managing its overall operating cost due to increase of sourcing cost as indicated in a survey report of 2015. The purpose of this study was to establish the relationship between strategic partnership sourcing and procurement performance in James Finlay Limited Kenya. The location of the study was James Finlays Limited, Bomet County Kenya. Correlation and cross-sectional research design was utilized in conducting the study. The target population for the study was 200 officials from procurement department in James Finlay Kenya Ltd. A sample size of 133 respondents was selected using stratified sampling technique. A structured questionnaire was the main data collection instrument. Validity of the research instruments was achieved by consulting supervisors and expert opinion in the field of procurement. To ascertain reliability of the research instrument, a pilot study was done in Unilever Tea Company where employees in their central stores were involved. The data from the pilot study was analyzed and findings compared with Cronbach alpha coefficient value of 0.7 where a value of 0.874 was achieved hence was deemed to be is reliable. The findings of the study may be significant to industry players, policy makers and other scholars to realize the appropriate sourcing strategies that will enable to reduce cost of operations and improve on their profitability. The study recommends that the organization should invest much on partnership sourcing since it has positive influence on the overall performance even though the influence is not significant