Influence of Supplier Selection Criteria on Performance of Public Corporations in Kenya: A Case of Water Resources Authority

Abstract

Supplier selection criteria has in the recent years presented dilemma in the public and private procurement processes. Water Resource Authority (WRA), a public corporation in Kenya has experienced shortfalls in performance amidst the implementation of procurement plans over the past several years. This study established the influence of supplier selection criteria on the performance of public corporations in Kenya, using a case of the WRA. The specific objectives of the study were: to establish the influence of supplier regulatory compliance assessment on performance of the WRA, to find out the influence of E-procurement capacity, to determine the influence of supplier quality assurance and to establish the influence of management capacity on organizational performance of the Water Resources Authority (WRA). The study adopted a descriptive case study design and a census survey methodology targeting all the 55 members of the target population which included all the senior WRA departmental heads and other administrative staff. A closed ended questionnaire was used for primary data collection. The researcher carried out a pilot test of the study involving 10 research subjects on the research instrument before administering the instrument to the entire study population. Due to the COVID-19 restrictions in Kenya, the questionnaires were emailed to the respondents through their official emails. The respondents filled and returned back the filled questionnaires through the same format. Data collected was analysed using SPSS and presented using tables and descriptive statistics. The study findings showed a significant influence of supplier regulation compliance on the performance of the Water Resources Authority. The study also established a significant correlation between E-procurement compliance and performance of the Water Resources Authority. Additionally, the study established that there existed a significant influence of supplier quality assurance and supplier management capacity on the performance of the Water Resources Authority. The study would inform the WRA's board of management decision making. Additionally, the knowledge derived would be cascaded downwards to the regional implementing WRA branches for sound supplier selection criteria practices.