INTERNATIONAL JOURNAL OF ACADEMICS & RESEARCH (IJARKE) · 2019. 10. 9. · 345 IJARKE PEER REVIEWED...

INTERNATIONAL JOURNALS OF ACADEMICS & RESEARCH ISSN: 2617-4138 IJARKE Business & Management Journal DOI: 10.32898/ibmj.01/2.1article30

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344 IJARKE PEER REVIEWED JOURNAL Vol. 2, Issue 1 Aug. – Oct. 2019

Effects of Total Quality Management Practices on Procurement

Performance of Springtech Kenya Limited – Mombasa

Mwangangi Clinton Nzuki, Jomo Kenyatta University of Agriculture & Technology, Kenya

Dr. Evelyn Datche, Jomo Kenyatta University of Agriculture & Technology, Kenya

1. Introduction

Total Quality Management (TQM) is a management philosophy and company practice that aims to harness the human and

material resources of an organization in the most effective way to achieve the objectives of the organization (Ambaw & Telgen,

2017). The procurement function has undergone significant changes in many countries, moving from a reactive activity to a

strategic one, in order to keep pace with the expansion of procurement activities and enhance procurement performance (Nag,

Han, & Yao, 2014). This has led to reforms aimed at establishing a strong and well-functioning procurement system that is

governed by a clear legal framework for transparency and effectiveness (Guccio, Pignataro, & Rizzo, 2014).Procurement

excellence is increasingly becoming an important factor in delivering efficient operations within successful companies. During a

downturn, when companies must consider every avenue for cutting costs in order to simply survive, the procurement department

plays an increasingly important role in achieving this strategic goal (Lancioni, 2013).Barasa, Namusonge, and Iravo, (2015) assert

that procurements should be based on value for money (defined as the optimum combination of whole life costs and fulfillment of

customer’s requirements) rather than initial purchase price.

Effective and efficient procurement systems and collaborative relationships are essential to the achievement of organizational

goals, cost reduction and supply chain performance. This is achieved by identifying key saving potential areas and driving

innovative sourcing models which can enable operators to reinvent their cost structures. Am, (2011) assert that every organization

that purchases goods or services must have effective standard procurement procedures, the methods they use to acquire those

things required for an organization to provide goods/services to its clients. These procedures should cover all aspects of the

procurement cycle, including the selection of the supplier, contract negotiations, order placement and payment and should ensure

appropriate service delivery.

Organizations globally of varied types have been in existence for a long time they have been created to serve the needs of the

society in which they exist. The key concern of these organizations all over the world is their continued existence over time (Jibrin

INTERNATIONAL JOURNALS OF ACADEMICS & RESEARCH (IJARKE Business & Management Journal)

Abstract

The general objective of this study was to assess the effect of total quality management practices on procurement performance

in Springtech Kenya Limited Mombasa. The theoretical framework of the study consisted of Deming’s Theory, Joseph Juran’s

Theory, The EFQM Framework and Resource Based View Theory. This research adopted a quantitative correlation research

design to address the formulated hypotheses. Stratified random sampling technique was used to select 80 respondents from the

target population of 100 respondents in Springtech Kenya Limited Mombasa including staff and customers. Primary data was

collected by use of self-administered structured questionnaires which was distributed through the drop and pick method. Data

analysis was by descriptive statistics and inferential statistics using Statistical Package for Social Sciences (SPSS) version

24.The Pearson’s product moment correlation analysis and standard multiple regression analysis was used for hypotheses

testing. The data was presented by the use of tables, and figures for the purpose of giving a pictorial view of the results. Set of

data was described using percentage, mean standard deviation and coefficient of variation and presented using tables, charts

and graphs. The study revealed that total quality management practices had a statistically significant effect on procurement

performance in Springtech Kenya Limited Mombasa. Customer relationship management practice had a statistically

significant effect on procurement performance in Springtech Kenya Limited Mombasa. Information Communication

Technology Practice had statistically significant effect on procurement performance in Springtech Kenya Limited Mombasa.

Staff training practice had a statistically significant effect on procurement performance in Springtech Kenya Limited

Mombasa. Procurement policies practice had a statistically significant effect on procurement performance in Springtech

Kenya Limited Mombasa. The study recommended that Springtech Kenya Limited Should adopt customer relationship

management practice, information communication technology practice, staff training practice and procurement policies

practice to enhance the performance of procurement function at Springtech Kenya Limited Mombasa.

Key words: Total Quality Management, Procurement Performance


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& Ejura, 2014). However, such continuous organizational life is not automatically assured (Mumbua, 2015). Mulwa, (2013)

asserts that “Corporations in every corner of the globe are taking advantage of the opportunity to share in the benefits of world

economic development. Market are shifting rapidly and in many cases converging in taste, trends, and prices. In such a

competitive environment resulted from world globalization and liberalization, firms survive with much difficulty unless they

create the competitive advantage over their competitors. Because of its effectiveness, many organizations are fast adopting the

ideology in order to make them effective in meeting public demands among other benefits.

In response to increase global pressures, customers’ demanding superior quality of products and services, the global

marketplace has become very competitive, many organizations have adopted practices such as total quality management (TQM),

and benchmarking. Many scholars claim that managers can implement TQM in any organization in any sectors of the economy

such as manufacturing, service, education, and government(Uttam, Balfors, Faith-ELL, & Mortberg, 2013)and that it generates

improved products and services, more satisfied customers and employees, reduced costs, improved financial performance,

enhanced competitive, and increased productivity(Demeulemeester, 2013). Organizations that adopt a quality management

strategy focus on achieving and sustaining a high quality outputs using management practices as the inputs and quality

performance as the outputs (Flynn, Huo, & Zhao, 2013).The pioneers in TQM, such as Deming, Juran, Cosby and Feigenbaum,

highlighted the importance of the quality philosophy as an essential competitive weapon for the transformation of an organization.

The ISO certification has fundamentally been a private sector affair, but it is becoming a public sector affair too, especially in

Kenya. It is believed that ISO is a mark of quality and a step towards international standards (Mulwa, 2013).However,

Hearnshawand Wilson, (2011) in a survey of 950 organizations of North Holland noted a common misconception among the

organizations that ISO would mandate higher levels of product quality. They were of the view that ISO certification gives no

guarantee that the quality of products or services of an organization is better than the quality of other organizations.

However, Oakland in 2010 suggested that the adoption of the ideology by most organization has been hampered due to their

noncompliance with the procedures and principles of TQM implementation. While some organizations, run TQM like a program

which they expect to function and perform the magic all by itself, others have used the approach to do it thus applying some bits

and pieces of the principles. This has accounted for failure of most organization to meet up to their expected target from

implementing this ideology. With the spate of changes going on in the many developing Countries Kenyan being one of them,

Government reforms have become a requirement so as to remain relevant in the economy. Further, the influx of foreign and local

investors to different sectors in an economy has given rise to intense competition, thus the need for organizations to reevaluate

their operational procedures and strategize so as to overcome the challenges.

The problem of quality and its associated costs has been a great concern to most industries and businesses since early sixties.

Oakland in 2010 defined Total Quality Management as a way of improving the management for effectiveness, flexibility and

competitiveness of a business as a whole. It involves the whole organization setting goals that all members work towards

achieving for effectiveness of customer satisfaction. Major areas which have been addressed by TQM include human resource

management, change management, operation management, organization culture, customer relations and customer satisfaction.

Total Quality management has emerged as the most promising business philosophy because of its radical and long term

implications to businesses, particularly towards change of organizational culture and value systems to become customer-centered,

with participation of the managers and employees. The continuous process of the contextual change and learning starts with the

firm leaders charged with the implementation of policies intended to develop customer value in product or service delivery among

employees.

1.1 Profile of Springtech Kenya Limited

Springtech (K) Ltd based in Mombasa deals in leaf spring manufacturing for all types of commercial vehicles, saloon cars,

pickups, mini buses, buses and trailers. SKL has its sight set to become one of the leaders in the leaf spring industry in Kenya,

applying three generations of experience and knowledge to our products. SKL manufactures and repairs a large range of springs

and sells a comprehensive range of ancillary components for both the original equipment and replacement markets. By virtue of

its quality, SKL exhibits a high degree of safety in performance and road safety and thus corresponds to the requirements of

customers all over Kenya. This we guarantee by stamping their trademark on every spring. Total quality management is a matter

of concern just from the very initial stages of production so as to eliminate wastages while at the same time saving cost of

production. This research aims to find out the quality level of performance in SKL and the problem with implementation of TQM

and also will assess the effect of total quality management on procurement performance.

2. Statement of the Problem

For decades procurement performance has been attracting great attention from practitioners, academicians and researchers due

to poor performance resulting from non-adherence to proper processes and procedures (Simatupang & Sridharan, 2013).

Historically, most entities in developing countries have been known for their poor performance and corruption, resulting from

non-adherence to processes and procedures, poor resource utilization, poor personnel management and training, inadequate


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payment and benefits. In addition, the procurement departments are faced with the problem of not having enough information

about the procurement procedure, its inputs, outputs, resource consumption and results and are therefore unable to determine their

efficiency and effectiveness. This problem requires establishment of clear procurement procedures and performance standards.

Performance when adopted, provides the decision-makers in the procurement department with unbiased and objective information

regarding the performance of the procurement function and how this affects operations in the company (McInerney,

2015).Further, there is a large body of evidence suggesting that the majority of cost reduction programs fail to meet expectations,

often because of poor planning, management and execution (Matunga, Nyanamba, & Okibo, 2013).

In Kenya a lot of state resources are channeled towards procurement of goods and services, with an aim of ensuring that the

full cycle is completed efficiently (Mulwa, 2013). However, there reports of dissatisfaction with the whole or part of the process

of procurement, which are said to subsequently impede successful implementation of government projects. Arguably this failure is

widely blamed on the inefficient management of the procurement function. The adoption of TQM by most organization has been

hampered due to their non-compliance with the procedure and principles of TQM implementation. While some organization, run

TQM like a program which they expect to function and perform the magic by it, others have used a halfhearted approach to it, by

using some bits and pieces of the principles. This has accounted for the failure of most organization in meeting up to their

expected target from implementing this ideology (Huse, 2014). The purpose of this study is to establish how TQM practices are

employed while addressing these challenges by examining whether there are any gaps or discrepancies (positive or negative)

between the service quality management offered by SKL and the actual TQM practices. An understanding of the various TQM

practices employed by SKL would aid to better the level of services quality management that SKL offers which would impact on

its overall business performance.

Springtech Kenya Limited is over ten years enjoying a monopolistic market in Mombasa County. Because of the tremendous

competition between the service organizations in the markets, it became very important that each organization improved its

performance and the development of services it provides. The performance of organizations was judged by the satisfaction of its

customers, its profit achievement and how it minimizes its losses as well as how the technology is being applied. Improving the

quality of services provided by an organization was a key factor for customer satisfaction (Mwangi, 2013).Reflecting this

principle the concept of Total Quality Management (TQM) was developed. Over the last few years, the level of awareness of

TQM was increased. There was agreement that the effectiveness of managing an organization was improved through TQM (Das

& Salwan, 2013).

TQM represented the integration of all functions and processes that were operated by an organization, to improve the quality

of its goods and services (Regan, Peter, & Jim, 2015). Nutt, (2012) described TQM as a comprehensive approach that involved

changing and organizing the whole organization; every department, every person at every level and every activity. The

performance of Springtech Kenya Limited had gone down in the recent past. The management system was such that power was

vested on individual rather than team. The decision making process was exclusive to a few individuals rather than being all

inclusive so that every bit of work processes was known. The motivational level was determined by factors not related to technical

expertise, knowledge, experience, creativity, level of qualification, capability and innovation but not personal agenda. There were

no proper upward communication systems thus making top management ignorant of the real situation on the ground. The top

management had not spelt out strategic objectives that all workers were guided by in the daily operation. This in the event had

affected the performance of the staff of SKL. The sales have gone down and many long term customers have opted for the

competitions of SKL as their expectation were no longer being met as there were delays in service and product delivery. The

company therefore needed to establish an effective TQM system to improve its performance in all areas.

3. Objective of the Study

The general objective of the study was to assess the effect of total quality management practices on the procurement

performance in Springtech Kenya limited Mombasa.

4. Literature Review

4.1 Theoretical Framework

4.1.1 Deming's Theory

Deming's theory of Total Quality Management rests upon fourteen points of management he identified, the system of profound

knowledge, and the Stewart Cycle (Plan-Do-Check-Act). He is known for his ratio - Quality is equal to the result of work efforts

over the total costs. If a company is to focus on costs, the problem is that costs rise while quality deteriorates. Deming's system of

profound knowledge consists of the System Appreciation - an understanding of the way that the company's processes and systems

work, Variation Knowledge - an understanding of the variation occurring and the causes of the variation, Knowledge Theory - the

understanding of what can be known, Psychology Knowledge - the understanding of human nature (Gebbler, 2012).

http://www.brighthubpm.com/monitoring-projects/70506-differences-between-total-quality-management-and-management-by-objectives/


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By being aware of the different types of knowledge associated with an organization, then quality can be broached as a topic.

Quality involves tweaking processes using knowledge such as Create constancy of purpose, Adopt the new philosophy, Stop

dependencies on mass inspections, Don't award business based upon the price, Aim for continuous production and service

improvement, Bring in cutting-edge on the job training, Implement cutting-edge methods for leadership, Abolish fear from the

company, Deconstruct departmental barriers, Get rid of quantity-based work goals, Get rid of quotas and standards, Support pride

of craftsmanship, Ensure everyone is trained and educated, Make sure the top management structure supports the previous thirteen

points(Christopher, Peck, & Towill, 2016). Plan-Do-Check-Act (PDCA) is a cycle created for continuous improvement. In

the planning phase, objectives and actions are outlined. Then, you do your actions and implement the process improvements.

Next, you check to ensure quality against the original. Finally acting requires that you determine where changes need to occur for

continued improvement before returning to the plan phase (Moullin, 2007).

4.1.2 Joseph Juran's Theory

Joseph Juran is responsible for what has become known as the "Quality Trilogy." The quality trilogy is made up of quality

planning, quality improvement, and quality control. If a quality improvement project is to be successful, then all quality

improvement actions must be carefully planned out and controlled. Juran believed there were ten steps to quality improvement.

These steps are: An awareness of the opportunities and needs for improvement must be created, Improvement goals must be

determined, Organization is required for reaching the goals, Training needs to be provided, Initialize projects, Monitor progress,

Recognize performance, Report on results, Track achievement of improvements (Juran, 2009).

The resource based view of the firm has been applied successfully to develop insights into the inter-firm relationships and

alliance for better firm performance (Volberda & Karali, 2015).Thus, a better understanding of the resource based view play a

pivotal role in advancing conceptual and pragmatic understanding of the firm’s supply chain management interactions and its

impact on overall performance. The resource based view theory is a theoretical perspective that initiates the attempt to describe,

explain and predict how firms can achieve a sustainable competitive advantage through acquisition of rare, valuable, in-imitable

and non-substitutable control over resources. Resource based view theory asserts that resources include both tangible assets such

as buildings and equipment’s and intangible assets such as capital knowledge that facilitate the production and delivery of goods

and services (Arend & Levesque, 2010).Firms seek to gain permanent or semi-permanent control over resources that can provide

a competitive advantage over competitors in the volatile market. As a result, firms may exert different levels of control over

different types of resources and they would differ in terms of the collective whole commonly referred to as bundle of resources or

resource endowment that would be available to them (Barney, 1991). These unique differences, in turn, should lead to innovation

of different product through product differentiation that ultimately account for the firms’ competitive advantage position (Helfat &

Peteraf, 2003).

4.1.3 The EFQM Framework

The European Foundation for Quality Management (EFQM) Model is based upon nine criteria for quality management. There

are five enablers (criteria covering the basis of what a company does) and four results (criteria covering what a company

achieves). The result is a model that refrains from prescribing any one methodology, but rather recognizes the diversity in quality

management methodologies (Birbil & Fang, 2015). The nine criteria as defined by the EFQM Model are: Focus on Results -

pleasing company stakeholders with results achieved by stakeholders is a primary focus, Focus on Customers - it is vital that a

company's quality management leads to customer satisfaction, Constancy of Purpose and Consistent, Visionary Leadership

Process and Facts form the Management Focus - Management breaks down everything into systems, processes and facts for easy

monitoring (Udeh, 2013).

Training and Involving Employees - Employees should receive professional development opportunities and be encouraged to

remain involved in the company, Continuous Learning - everyone should be provided with opportunities for learning on the job,

Developing Partnerships - It is important to encourage partnerships that add value to the company's improvement process, Social

Responsibility of the Corporation - The company should always act in a way where it is responsible towards the environment and

society at large(Kamminga, 2015).

4.1.4 Resource Based View Theory

Firms have realized the critical importance and interdependencies that mutually exist between the organization’s internal

operational processes and those of suppliers and customers (Luo & Child, 2015) .Organizations are focusing at improving their

operational level performance and as a result a good number of firms are developing explicit linkages with suppliers and

customers so as to reap the benefits of such linkages (Regner, 2015). Supply chain management linkages refers to the pillar

connections that a firm creates with critical entities in its supply chain network in order to fully manage the flow of inputs from

suppliers into the firm and outputs from the firm to customers who are end users. These linkages can only be implemented

through practices such as seeking suppliers and customers input on innovation of new products and product diversification, vendor

management inventory system to allow sharing of information between various parties in the supply chain, supplier and customer

http://www.brighthubpm.com/methods-strategies/71061-major-characteristics-of-tqm/http://www.brighthubpm.com/methods-strategies/71071-great-tqm-tools-for-better-quality-management/http://www.brighthubpm.com/methods-strategies/71071-great-tqm-tools-for-better-quality-management/http://www.brighthub.com/money/investing/articles/38608.aspxhttp://www.brighthub.com/money/investing/articles/38608.aspx


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relationship management, and value addition management among other critical supply chain components (Rungutusanatham,

Salvador, Forza, & Choi, 2013).

In order to have a proper insight on the critical significance which exist between supply chain management linkages, supply

chain network performance and organizational performance, some theories have been borrowed and applied in supply chain

management from other related disciplines such as economics and management science so as to provide a rich insight for better

understanding the benefits that firms derive from supply chain management linkages between suppliers and customers. The

resource based view of the firm is borrowed and applied in supply chain management from the strategic management discipline.

The resource based view of the firm has been applied successfully to develop insights into the inter-firm relationships and

alliance for better firm performance (Volberda & Karali, 2015).Thus, a better understanding of the resource based view play a

pivotal role in advancing conceptual and pragmatic understanding of the firm’s supply chain management interactions and its

impact on overall performance. The resource based view theory is a theoretical perspective that initiates the attempt to describe,

explain and predict how firms can achieve a sustainable competitive advantage through acquisition of rare, valuable, in-imitable

and non-substitutable control over resources. Resource based view theory asserts that resources include both tangible assets such

as buildings and equipment’s and intangible assets such as capital knowledge that facilitate the production and delivery of goods

and services (Arend & Levesque, 2010).Firms seek to gain permanent or semi-permanent control over resources that can provide

a competitive advantage over competitors in the volatile market. As a result, firms may exert different levels of control over

different types of resources and they would differ in terms of the collective whole commonly referred to as bundle of resources or

resource endowment that would be available to them (Barney, 1991). These unique differences, in turn, should lead to innovation

of different product through product differentiation that ultimately account for the firms’ competitive advantage position (Helfat &

Peteraf, 2003).

Barney (2013)and Peteraf (2011) discussed the five critical characteristics of a resource that would allow firms to attain a

sustainable competitive advantage. First, the resource must be valuable in that it improves firm efficiency and effectiveness in

providing unique and distinguished performance from its competitors. Second, the resource must be rare so that by exercising

control over it, the firm can exploit it to the disadvantage of its competitors and use it to gain competitive advantage over its

competitors. Third, the resource must be imperfectly imitable to prevent competitors from being able to easily imitate innovation

and develop the resource in-house. Fourth, the resource must be imperfectly mobile to discourage the ex-post competition for the

resource that would offset the advantages of maintaining control of the resource. Fifth, the resource must not be substitutable;

otherwise, competitors would be able to identify and innovate different products which can be strategically equivalent resources to

be used for the same purpose.

How a particular resource fits within a firm’s resource endowment and interacts with firm’s other resources can also reduce

imitability and deter mobility. More specifically, the integration of a resource within a complex social network would likely raise

the stakes of the resource making it even more difficult to replicate and this phenomenon is commonly referred to as “social

complexity”. The social complexity of a team effect, especially for successful teams that interact within a system of facilities,

decreases the likelihood of such teams being successful in other contexts – an argument that may explain the failures of quality

circles outside of Japan (Dollinger, Li, & Mooney, 2010).The intangibility of a desirable resource, as well as legally imposed

restrictions and regulations such as patents, licenses, and industrial espionage laws also serves to protect the resources from being

readily duplicated or traded.

Resource based view of the firm theorists have explored how resources can create and sustain a competitive advantage of the

firm. Grant, (2009) equated the concept of organizational capability and performance to core competencies in the organizational

routines. He explicitly argued that organizational routines which he defined as “regular and predictable patterns of activity and

sequence of coordinated actions that deploy rent-yielding resources, hence creating a competitive advantage” (Grant, 1991). Amit

& Schoemaker (1993) made the same argument and extended the definition of corporate performance capability as “information-

based, tangible and intangible processes that provide enhanced productivity of its resources, as well as strategic flexibility and

protection for its final product or service”.

In summary, the major highlights of resource based view theory are: To compete effectively, each firm seeks to acquire,

control, and bundle resources with unique performance capabilities; Resources are classified as tangible and intangible assets that

are key inputs into the production effort and delivery of goods or services; Performance capabilities are organizational routines

practices and mechanisms that enable a firm to acquire and deploy unique resources to facilitate the production and delivery of

goods or services; Resources and firm’s capabilities that are valuable to the firm, rare , imperfectly mobile, not imitable by

competitors, and not substitutable provide the firm with a sustainable competitive advantage.

When a firm controls resources that bare the attributes of resource based view theory i.e. rare, valuable, in-imitable, on-

substitutable and imperfectly mobile or simply VRINN resources, the firm gains a unique sustainable competitive advantage.

When a firm creates unique supply chain linkages with its suppliers and customers, resulting into connections that exclude

competitors from forming the same connections with the same critical suppliers and customers for the same purpose, the firm


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gains a competitive advantage which benefits them immensely. This benefit should directly be credited to the performance of the

firm since the connections in supply chain linkages facilitate the flow of quality materials such as raw materials into the firm and

finished goods and services out of the firm (Schmenner, 2012).

In concurrence with the resource based view of the firm thinking perspective, supply chain management linkages that facilitate

availability of quality materials from suppliers to a firm and from the firm to customers represent a VRINN (rare, valuable, in-

imitable, imperfectly mobile and non-substitutable) resource and can create an organizational performance advantage for the firm.

However, corporate performance advantage tends to be a temporary reprieve for the firm and in order for a firm’s supply chain

management practices and linkages to provide a sustainable organization performance benefit; a firm must continually endeavor to

protect the integrity of the VRINN resource properties of its supply chain network linkages (Morali & Searcy, 2013). Therefore,

the resource based view approach can be modeled into two perspectives as follows; In the short-run, a firm’s supply chain

network linkages represent a VRINN resource that provides superior but temporary organizational performance advantages to the

firm and that the extent to which a firm is able to continually protect the integrity of the VRINN resource properties in its supply

chain network linkages will determine whether or not the firm will enjoy sustainable superior organizational performance

advantages from such connections with critical suppliers and customers (Cawley & Snyder, 2012). In conclusion, this theory is

relevant to supply chain management practices contribution to corporate performance as it advocates for better control of firm’s

resource capabilities that are VRINN. The firm can gain a sustainable competitive advantage by proper control and management

of supply chain network by deploying proper supply chain management practices such as supplier relationship management and

value addition management which are key resources to the success of any organization.

4.2 Conceptual Framework

A conceptual framework is a graphical representation of the theorized interrelationships of the variables of a study Kothari

and Gang, (2014). The conceptualization of variables in any academic study is important because it forms the basis for testing

hypothesis and coming up with generalizations in the findings of the study (Jabareen, 2009). The independent variables of this

study will include customer relationship management practice, information communication technology practice, staff training

practice and procurement policies practice while procurement performance of Springtech Kenya Limited Mombasa represents the

dependent variable. The conceptual framework will further explain the sub variables to be tested in each variable which are the

measures that will be tested. The operationalization of the variables is as shown in Figure 1.

Independent Variables Dependent Variable

Figure 1 Conceptual Framework

Customer Relationship Management

Practice

Reliability

Assurance

Responsiveness

Information Communication

Technology Practice

Technical skills

Infrastructure

Re-engineering

Staff Training Practice

Job rotation

Introduction and orientation

Appraisals

Procurement Policies Practice

Internal Processes

SWOT Analysis

Monitoring and evaluation

Procurement Performance

Cost saving

Profit maximization

Customer satisfaction

Timely Delivery


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4.3 Review of Literature on Variables

4.3.1 Customer Relationship Management Practice

Organizational strategy should be developed based on customers “needs. Skipper& Hanna, (2014) pointed out that customer

focus is the underpinning principles for firms to implement TQM programs. As argued by some scholars, the principle of

customer focus could trap organizations into captive markets where they will focus on meeting the needs of existing customers

and therefore view their business only through their current customer’s eyes (Kumar, 2013). As a result, these companies could

fail to drive the search for innovative and novel solutions by ignoring the un-served potential in the market. Furthermore TQM is

combining the knowledge for the customers with other information and use the planning process to organize the future actions,

managing the daily activities and achieving company’s future goals. The planning process is the liaison that holds together all 17

TQM activities. The organizations, which want to apply the Total Quality Management, must understand that customers will be

satisfied only if every time they receive products and services that accomplish their needs, are delivered at the right time and are

priced for value (Walls, Berrone, & Phan, 2012).

They are using the techniques of process management to develop processes, which will control the total costs. These processes

will be stable and capable in order to achieve customer expectations. According to ISO 9004:2000, the key benefits of this

include: increased revenue and market share obtained through flexible and fast responses to market opportunities; increased

effectiveness in the use of the organization’s resources to enhance customer satisfaction; improved customer loyalty leading to

repeat business. Applying of the principle of customer focus typically leads to researching and understanding customer needs and

expectations; ensuring that the objectives of the organization are linked to customer needs and expectations, communicating

customer needs and expectations throughout the organization; measuring customer satisfaction and acting on the results;

systematically managing customer relationships; ensuring a balanced approach between satisfying customers and other interested

parties (Svidronova & Mikus, 2015).

According to the Oakland model, quality should be seen as customer-serving process rather than a department. Clause of

customer related process under ISO 9001: 2000 requires the organization to identify and document requirements and document

requirements and to clarify with the customers the requirements and to clarify with the customer the requirements it is to fulfill as

part of the contract (Birbil & Fang, 2015). Similarly the organization should ensure that the objectives of the organization are

linked to the customer needs and expectations and such customer needs and expectations are communicated throughout the

organization. The customer focus is beneficial to the organization because it enhances customer loyalty; increases revenue and

market share and also increases effectiveness in the use of resources (OECD, 2015).An effective management 18 systems must

ensure that the organization has a strong customer focus. Customer needs and expectations must be determined and converted into

product requirement, customer focus means putting emphasis and energy into satisfying and even exciting customers and also

understanding the fact that increased performance is the outcome of satisfied customers.

4.3.2 Information Communication Technology Practice

Wahl & Bull, (2014) emphasize the critical role played by ICT in the stages of procurement; searching, sourcing, negotiation,

ordering, receipt, and post-purchase review. Fitzgerald& Storbeck, (2013) assert that ICT can be used in procurement in activities

such as selecting suppliers, purchasing, negotiating, agreeing with terms, monitoring the supplier performance among others. This

further ensures efficiency and effectiveness of procurement and especially so in public procurement where public scrutiny

therefore public interest takes center stage in all processes. Stocker, Qin, & Plattner, (2013) emphasized that use of ICT in

procurement leads to improved operational performance. Chae, (2015) asserts that corruption involves a different process of

allocation of contracts than would have been obtained through a competitive process. The contract could be awarded to lowest

bidder and in some cases has offered a bribe or in other cases the number of bidders would be reduced hence hindering

competition. By hindering competition, the cost of doing business increases and the public is at a loss. ICT has the advantage of

ensuring transparency by relaying information globally and this in essence gives the public the powers to question some

transactions which would have gone unnoticed in manual processes which hinder information sharing. In general, as brought out

by different authors in this research, the use of ICT in procurement processes may lead to reduced costs and time for managing

information, to integration, comparability and rapid update of data coming from different sources (e.g., enhanced monitoring),

and, finally, to disintermediation and reduction of discretion, hence to more transparent information, limiting opportunities for

bribery.

4.3.3 Staff Training Practice

Organizations must understand that the success of the project is depending on the employees-managers. Managers-leaders are

taking the personal responsibility for implementing, promoting, and monitoring the whole amount of the activities. The employees

are properly trained, capable, and they have an active participation (must not be passive) for the achievement of company’s goals.

Management and employees are working together in order to create a strong value environment where people are having the

primal role. Employees must be able to measure and utilize quality data efficiently and effectively (Derocher & Kilpatrick, 2016).


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The study of Ho et al. (2010) indicated that human resource, which includes employee training and employee relation, was

positively related to 22 quality improvements, which was mediated through utilizing quality data and reporting. Thus, whether or

not a TQM program will be successfully implemented mainly depends on the collaboration and coordination among a firm’s

workforce. An effective implementation of TQM can be derived from employees‟ understanding of the philosophy and principle

of TQM implementation (Cawley & Snyder, 2012). Furthermore, if employees have high consciousness of TQM, the data and

reporting of quality control prepared by working staffs will be easy to uncover the reality and thus, can be used to correct quality

flaws or mistakes immediately and effectively. In this way, the authors propose that better human management will result in more

positive effect on producing quality data and reporting (Lu, 2017).

According to ISO 9004:2000, the benefits likely to be derived from employee involvement include motivated; committed and

involved people within the organization; innovation and creativity in furthering the organizations objectives; people being

accountable for their own performance; people eager to participate in and contribute to continual improvement. Similarly,

applying the principle of employee involvement leads to: employee openly discussing problems and issues; people freely sharing

knowledge and experience; people actively seeking opportunities to enhance their competence, knowledge and experience; people

evaluating their performance against their personal goals and objectives; people accepting ownership of problems and their

responsibility for solving them; people understanding the importance of their contribution and role in the organization(Jacobs &

Buijs, 2013).

According to Oakland, J. in 2005, involving employees means sharing knowledge, encouraging, and recognizing their

contributions. It also entails utilizing their experience and operating with integrity. Involvement creates awareness among the

people in the organization of 23 the importance of meeting customer requirements. People get involved in the organization when

they can identify constraints to their performance, evaluate their performance against set standards, actively seek opportunities to

enhance their competence and freely share their work experience and knowledge (Tang & Tomlin, 2014). Employee’s

involvement acts as a strong stimulant and motivator to work, enhances creativity and innovation, provides an environment for

people to accept ownership of problems and their responsibility to solve them and help understand the importance of their

contribution in the organization.

4.3.4 Procurement Policies Practice

In an uncertain and highly dynamic environment, long-term survival of the organizations is possible by developing quality

products at a competitive level (McInerney, 2015). The best quality on the market can be achieved through continuous

improvement of processes and by adding value to activities. In this context, organizations can turn to the process of procurement

and management of material resources as a source for quality improvement, given that it has a decisive role in quality assurance

(Kamminga, 2015). Thus, management at the highest level of the organization must ensure the design and implementation of

effective processes of procurement and management of material resources in order to ensure compliance of materials supplied

with specified purchase requirements, to identify, evaluate and select sources supply, and to develop mutually beneficial

relationships with suppliers and assess their capability to deliver products that comply with the requirements of the organization

(Lancioni, 2013). By means such as planning, controlling and determining appropriate methods for monitoring, measurement and

analysis, the process of procurement and management of material resources will have an important contribution to improve further

the efficiency and effectiveness of the organization.

4.3.5 Procurement Performance

Procurement performance is a measure of identifying the extent to which the procurement function is able to reach the

objectives and goals with minimum costs (Raskovic & Makovec, 2012). Barasa, Namusonge, and Iravo, (2015) noted that there

are two main aspects of the procurement performance: effectiveness and efficiency. Procurement effectiveness is the extent to

which the previously stated goals and objectives are being met (Elegbe, 2016). It refers to the relationship between actual and

planned performance of any human activity. Additionally, he explains that procurement efficiency is the relationship between

planned and actual resources required to realize the established goals and objectives and their related activities, referring to the

planned and actual costs. As a result, supplier performance is the most important procurement performance driver. For any

organization to change its focus and become more competitive, Amaratunga and Baldry (2010) suggest that procurement

performance is a key driver to improving quality of services while its absence or use of inappropriate means can act as a barrier to

change and may lead to deterioration of the purchasing function. None the less, most developing countries are facing a problem of

rapid changes in procurement requirements. The 13 changes are impacting pressure on how the procurement function performs its

internal and external processes and procedures in order to achieve its objectives. Procurement performance provides a basis for

effective control and stewardship of resources and demonstrates the value of the procurement function. Most organizations have

no performance measures in place for assessing procurement efficiency and effectiveness. Of the few that did have measures,

many were qualitative statements rather than specific targets to achieve (Snider & Rendon, 2012).

According to ISO 9000, and ISO 9000: 2005, ISO 9001: 2008, ISO 9004: 2009 standards, an organization can achieve

sustainable success by implementing a quality management system designed to continuously improve performance, taking into


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account the most important expectations, those of the customers, shareholders, suppliers and those of the community(Lam, 2011).

Part of the organization's management system, the quality management system aims at streamlining the organization’s processes,

adding value, lowering costs and increasing adaptability to the needs of the customer (Guccio, Pignataro, & Rizzo, 2014).

Lately there has been a growing concern for the quality of the processes. The set of ISO 9000 standards support the model of a

quality management system based on processes and their management in a systemic vision to increase efficiency and effectiveness

in achieving the objectives of the organization. The project of the international standard ISO/CD 9001:2013 (the new edition of

the ISO 9001 standard that will be published by the end of 2015) further strengthens the process-oriented approach, as the

integrated management of processes is deemed the future in management. Among the key processes of the quality management

system, the process of procurement and management of material resources has a direct and decisive influence on product quality

because the properties of the resources acquired are mostly traceable in the values of the main quality features of the final product

(Chae, 2015). The control of the process of procurement and management of material resources is a mandatory requirement of

ISO 9001: 2008 standard.

5. Research Methodology

This study adopted a descriptive survey method, in which both qualitative and quantitative approaches were used. Qualitative

analysis was used in behavioral skills, personal attributes and quality data that cannot be quantified while quantitative approach

was used in the numerical data that can be easily measured. Descriptive studies- cross-sectional are more formalized and typically

structured with clearly stated investigative questions (Vyas & Bapat, 2011). This study design was used because it is the most

commonly used research method in social research. It serves a variety of research objectives such as descriptions of phenomenon

or characteristics associated with a subject population, estimates the proportion of a population that have this characteristics and

discovery of associations among different variables. This will be used to find out the effect of total quality management practices

on procurement performance in Springtech Kenya Limited Mombasa.

5.1 Target Population

The target population contains members of a group that a researcher will study. This study was conducted in Springtech Kenya

Limited Mombasa. This provided a good sample for assessing the effect of total quality management practices on procurement

performance in Springtech Kenya Limited Mombasa. The target population of this study included70 employees of Springtech

Kenya Limited Mombasa from department of finance, CEO, s office and procurement as well as 30 customers to make a total of

100 respondents as shown in the table 1.

Table 1 Target population

Respondents Category Number of Staff/Customers

Finance 20

Procurement 28

Marketing 22

Customers 30

Total 100

Source: Springtech Kenya Limited Mombasa

5.2 Sample Size and Sampling Technique

Sample size determination is the act of choosing the number of observations or replicates to include in a statistical sample.

The sample size is an important feature of any empirical study in which the goal is to make inferences about a population from

a sample (Bryman & Bell, 2015). The total sample size for this study was obtained using the formulae developed by Cooper and

Schinder, (2013) together with (Kothari, 2014). The sample size was80 respondents drawn from Springtech Kenya Limited

Mombasa employees and customers.

n = N /1 + N (α) ²

Where:

n= the sample size,

N= the sample frame (population)

α= the margin of error (0.05%).

A sample size of 80 respondents is arrived at as follows: n = 100/1 + 100 (0.05)² = 80

After getting the sample size of 80 respondents, it is necessary to explain on how to select the number for data gathering from

the target population of 100 respondents. The selection employed appropriate sampling techniques that take into account the

various departments within Springtech. Kothari (2012) notes that there are various sampling techniques, such as simple random


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sampling, stratified random sampling, purposive sampling and snow ball sampling just to mention a few. These techniques can be

broadly classified as either probability or non-probability sampling. Non probability sampling is sampling procedure whereby the

chance of selecting a respondent to be included in the sample is not known. Some of the nonprobability sampling techniques

include convenience sampling and snow ball sampling. On the other hand, for probability sampling the chance of selecting a

respondent for inclusion in the sample is known. Some of the probability sampling techniques include simple random sampling,

stratified random sampling among others (Kothari, 2012).

This study used probability sampling since the population and location of respondents per department was known.

Specifically, the study used stratified random sampling in order to account for the uneven distribution of respondents in various

departmental segments. This also allowed the researcher to measure the effect of TQM on performance of procurement contract in

Springtech Kenya Limited Mombasa and avoids leaving some of them. The uneven distribution of respondents in departments

gives rise to heterogeneity which if not properly accounted would lead to biased parameter estimates. In this regard, stratified

sampling enabled us to avoid biasness consequently having unbiased parameter estimates. Based on distribution of respondents in

the 5 segments (table 3.1), the researcher used proportions that were calculated in the population distribution to come up with a

representative sample distribution as shown in table 2. The proportions calculated gave the number of respondents per department

to be included in the sample for each segment. Thereafter simple random sampling was used to select the names of respondents

from which data was to be collected.

Table 2 Sample Size

Respondents

Category

Number of

Staff/Customers

Calculation Sample

Size

Percentage of

Sample Size

Finance 20 80/100*20 16 20

Procurement 28 80/100*28 22 27.5

Marketing 22 80/100*22 18 22.5

Customers 30 80/100*30 24 30

Total 100 100/(1+100*0.052) 80 100

5.3 Data Collection Methods

This section outlined the methods that were used to collect primary data which was a questionnaire. It also indicated the

method that was used to collect secondary data for the study.

6. Research Findings

6.1 Descriptive Analysis

In the research analysis the researcher used a tool rating scale of 5 to 1; where 5 were the highest and 1 the lowest. Opinions

given by the respondents were rated as follows, 5= Strongly Agree, 4= Agree, 3= Neutral, 2= Disagree and 1= Strongly Disagree.

The analyses for mean, standard deviation were based on this rating scale.

6.1.1 Customer Relationship Management Practice

Table 3 Customer Relationship Management Practice

N Mean Std.

Deviation

My company has documented procedures to deal with

customer complaints 58 3.60 1.413

My company offer after sales service to their clients 58 3.88 1.229

My company solicits customers’ inputs in our products design 58 3.64 1.471

My company conduct training to our customers 58 4.26 1.250

Valid N (listwise) 58

The first objective of the study was to establish the effect of customer relationship management practice on procurement

performance in Springtech Kenya Limited Mombasa. Respondents were requested to respond to a specific set of questions related

to customer relationship management practice and give their feedback and opinion. The opinion that my company has documented

procedures to deal with customer complaints had a mean score of 3.60 and standard deviation of 1.413. The opinion that my

company offer after sales service to their clients had a mean score of 3.88 and a standard deviation of 1.229. The opinion that my

company solicits customers’ inputs in our products design had a mean score of 3.64 and a standard deviation of 1.471. The

opinion that my company conducts training to our customers had a mean score of 4.26 and a standard deviation of 1.250.

6.1.2 Information Communication Technology Practice


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Table 4 Information Communication Technology Practice

N Mean Std.

Deviation

My company has developed the policy to guide on the information

sharing within and outside our organization 58 3.52 1.367

My company has fully invested in state of art information system to

enable information sharing within and outside our company 58 3.98 1.221

The adoption of E-tendering leads to the attainment of positive

procurement efficiencies 58 3.57 1.339

Organizational readiness to adopt ICT has an influence the success

of adopted integrated procurement systems 58 4.00 1.185


The second objective of the study was to establish the effect of information communication technology practice on

procurement performance in Springtech Kenya Limited Mombasa. Respondents were requested to respond to set of specific

questions related to information communication technology practice and give their opinions. The opinion that my company has

developed the policy to guide on the information sharing within and outside our organization had a mean score of 3.52 and

standard deviation of 1.367. The opinion that my company has fully invested in state of art information system to enable

information sharing within and outside our company had a mean score of 3.98 and a standard deviation of 1.221. The opinion that

the adoption of E-tendering leads to the attainment of positive procurement efficiencies had a mean score of 3.57 and a standard

deviation of 1.339. The opinion that organizational readiness to adopt ICT has an influence on the success of adopted integrated

procurement systems had a mean score of 4.00 and a standard deviation of 1.185.

6.1.3 Staff Training Practice

Table 5 Staff Training Practice

N Mean Std.

Deviation

Procurement staff are taken for refresher courses annually 58 4.09 1.302

Majority of procurement staff have acquired knowledge with at least

a first degree 58 3.98 1.147

Procurement records of the organization are properly kept by the staff 58 3.90 1.224

Procurement staff in the organization has professional qualifications

and are registered by professional bodies. 58 4.02 1.291


The third objective of the study was to establish the effect of staff training practice on procurement performance in Springtech

Kenya Limited Mombasa. Respondents were requested to respond to set of specific questions related to staff training practice and

give their opinions. The opinion that procurement staff are taken for refresher courses annually had a mean score of 4.09 and

standard deviation of 1.302. The opinion that majority of procurement staff have acquired knowledge with at least a first degree

had a mean score of 3.98 and a standard deviation of 1.147. The opinion that procurement records of the organization are properly

kept by the staff had a mean score of 3.90 and a standard deviation of 1.224. The opinion that procurement staff in the

organization have professional qualifications and are registered by professional bodies had a mean score of 4.02 and a standard

deviation of 1.291.

6.1.4 Procurement Policies Practice

The fourth objective of the study was to establish the effect of procurement policies practice on procurement performance in

Springtech Kenya Limited Mombasa. Respondents were requested to respond to set of specific questions related to procurement

policies practice and give their opinions. The opinion that adherence to codes of conduct practices is imperative to attain desired

procurement performance had a mean score of 3.62 and standard deviation of 1.437. The opinion that the adoption of ethical

behaviors ensures that firms obtain value for their procurement money had a mean score of 4.26 and a standard deviation of 1.163.

The opinion that transparency secures best value for organizational procurement money had a mean score of 4.21 and a standard

deviation of 1.072. The opinion that accountability secures best value for organizational money as it improves on overall

procurement performance had a mean score of 4.17 and a standard deviation of 1.094.

Table 6 Procurement Policies Practice

N Mean Std.

Deviation


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Adherence to codes of conduct practices is imperative to attain

desired procurement performance 58 3.62 1.437

The adoption of ethical behaviors ensures that firms obtain value for

their procurement money 58 4.26 1.163

Transparency secures best value for organizational procurement

money 58 4.21 1.072

Accountability secures best value for organizational money as it

improves on overall procurement performance 58 4.17 1.094


6.1.5 Procurement Performance

Table 7 Procurement Performance

N Mean Std.

Deviation

Adherence to codes of conduct practices is imperative to attain

desired procurement performance 58 4.12 1.186

Procurement staff in the organization has professional qualifications

and are registered by professional bodies. 58 3.95 1.083

My company has developed the system to monitor the supplier

performance 58 3.83 1.353

My company has fully invested in state of art information system to

enable information sharing within and outside our company 58 4.17 .994


The opinion that adherence to codes of conduct practices is imperative to attain desired procurement performance had a mean

score of 4.12 and a standard deviation of 1.186. The statement that procurement staff in the organization have professional

qualifications and are registered by professional bodies had a mean score of 3.95 and standard deviation of 1.083. The statement

that my company has developed the system to monitor the supplier performance had a mean score of 3.83 and a standard deviation

of 1.353. The statement that my company has fully invested in state of art information system to enable information sharing within

and outside our company had a mean score of 4.17 and a standard deviation 0.994.

6.2 Correlation Analysis

Correlation analysis was carried out to establish the relationship between the independent variables and the dependent variable.

6.2.1 Coefficient of Correlation

Pearson Bivariate correlation coefficient was used to compute the correlation between the dependent variable (procurement

performance) and the independent variables (customer relationship management practice, information communication technology

practice, staff training practice and procurement policies practice). According to Sekaran, (2015), this relationship is assumed to

be linear and the correlation coefficient ranges from -1.0 (perfect negative correlation) to +1.0 (perfect positive relationship). The

correlation coefficient was calculated to determine the strength of the relationship between dependent and independent variables

(Kothari and Gang, 2014).

In trying to show the relationship between the study variables and their findings, the study used the Karl Pearson’s coefficient

of correlation (r). This is as shown in Table 4.11 below. According to the findings, it was clear that there was a positive

correlation between the independent variables, customer relationship management practice, information communication

technology practice, staff training practice and procurement policies practice and the dependent variable procurement

performance. The analysis indicates the coefficient of correlation, r equal to 0.292, 0.091, 0.410 and 0.199 for customer

relationship management practice, information communication technology practice, staff training practice and procurement

policies practice respectively. This indicates positive relationship between the independent variable namely customer relationship

management practice, information communication technology practice, staff training practice and procurement policies practice

and the dependent variable procurement performance.


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Table 8 Pearson Correlation

Procurement

Performance

Customer

relationship

management

practice

Information

Communication

Technology

Practice

Staff

Training

Practice

Procurement

Policies

Practice

Procurement

Performance

1

58

Customer

relationship

management

practice

.292**

1

.026

58 58

Information

Communication

Technology

Practice

.091*

.023 1

.497 .865

58 58 58

Staff

Training

Practice

.410**

.204 .133 1

.001 .124 .321

58 58 58 58

Procuremen

t Policies

Practice

.199** .232 .167 .050 1

.135 .080 .210 .710

58 58 58 58 58

*. Correlation is significant at the 0.05 level (2-tailed).

**. Correlation is significant at the 0.01 level (2-tailed).

6.2.2 Coefficient of Determination (R2)

To assess the research model, a confirmatory factors analysis was conducted. The four factors were then subjected to linear

regression analysis in order to measure the success of the model and predict causal relationship between independent variables

(customer relationship management practice, information communication technology practice, staff training practice and

procurement policies practice), and the dependent variable (procurement performance).

Table 9 Model Summary

Model R R

Square

Adjusted R Square Std. Error of the Estimate

1 .494a .245 .188 2.48072

a.Dependent variable: Project Implementation

b. Predictors: (Constant), Procurement Policies Practice, StaffTrainingPractice,

InformationCommunicationTechnology Practice, Customerrelationshipmanagementpractice

The model explains 24.5% of the variance (Adjusted R Square = 0.188) on procurement performance. Clearly, there are

factors other than the four proposed in this model which can be used to predict procurement performance. However, this is still a

good model as Cooper and Schinder, (2013) pointed out that as much as lower value R square 0.10-0.20 is acceptable in social

science research. This means that 24.5% of the relationship is explained by the identified four factors namely customer

relationship management practice, information communication technology practice, staff training practice and procurement

policies practice. The rest 75.5% is explained by other factors in the procurement performance not studied in this research. In

summary the four factors studied namely customer relationship management practice, information communication technology

practice, staff training practice and procurement policies practice determines 24.5% of the relationship while the rest 75.5% is

explained or determined by other factors.

6.2.3 Analysis of Variance (ANOVA)

The study used ANOVA to establish the significance of the regression model. In testing the significance level, the statistical

significance was considered significant if the p-value was less or equal to 0.05. The significance of the regression model is as per

Table 10 below with P-value of 0.00 which is less than 0.05. This indicates that the regression model is statistically significant in

predicting factors of procurement performance. Basing the confidence level at 95% the analysis indicates high reliability of the

results obtained. The overall Anova results indicates that the model was significant at F = 4.288, p = 0.004.


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Table 10 ANOVA

Model Sum of Squares df Mean Square F Sig.

1

Regression 105.564 4 26.391 4.288 .004b

Residual 326.160 53 6.154

Total 431.724 57

a. Dependent Variable: Procurement Performance

b. Predictors: (Constant), ProcurementPoliciesPractice, StaffTrainingPractice,

InformationCommunicationTechnologyPractice, Customerrelationshipmanagementpractice

6.2.4 Multiple Regression Analysis

Table 11 Multiple Regression

Model Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

B Std.

Error

Beta

1

(Constant) 2.611 4.048 2.151 .001

Customerrelationshipm

anagementpractice .214 .146 .184 3.469 .004

InformationCommunic

ationTechnologyPractice .133 .138 .118 2.964 .000

StaffTrainingPractice .497 .160 .382 3.102 .003

ProcurementPoliciesPra

ctice .136 .144 .117 2.942 .001

a. Dependent Variable: Procurement Performance

The regression equation was:

Y = 2.611 + 0.214X1 + 0.133X2 + 0.497X3+ 0.136X4

Where;

Y = the dependent variable (Procurement Performance)

X1 = Customer Relationship Management

X2 = Information Communication Technology Practice

X3 = Staff Training Practice

X4= Procurement Policies Practice

The regression equation above has established that taking all factors into account (procurement performance as a result of

customer relationship management practice, information communication technology practice, staff training practice and

procurement policies practice) constant at zero procurement performance was 2.611. The findings presented also shows that

taking all other independent variables at zero, a unit increase in customer relationship management practice will lead to a 0.214

increase in the scores of procurement performance; a unit increase in information communication technology practice will lead to

a 0.133 increase in procurement performance; a unit increase in staff training practice will lead to a 0.497 increase in the scores of

procurement performance; a unit increase in procurement policies practice will lead to a 0.136 increase in the score of

procurement performance. This therefore implies that all the four variables have a positive relationship with staff training practice

contributing most to the dependent variable.

From the table we can see that the predictor variables of procurement performance as a result of customer relationship

management practice, information communication technology practice, staff training practice and procurement policies

practicegot variable coefficients statistically significant since their p-values are less than the common alpha level of 0.05.

7. Conclusions and Recommendations

7.1 Conclusions

The study concluded the following:

7.1.1 Effect of Customer Relationship Management Practice on Procurement Performance

The study concluded that customer relationship management practice through reliability methods help Springtech Kenya

Limited Mombasa to manage procurement performance. Further the study concluded that customer relationship management

practice through assurance and responsive tools help enhance procurement performance in Springtech Kenya Limited Mombasa.


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The study results in general concluded that there was a statistically significant effect of customer relationship management

practice on procurement performance in Springtech Kenya Limited Mombasa.

7.1.2 Effect of Information Communication Technology Practice on Procurement Performance

The study concluded that information communication technology practice through technical skills help Springtech Kenya

Limited Mombasa to manage procurement performance. Further the study concluded that information communication technology

practice through technological infrastructure and re-engineering help enhance procurement performance in Springtech Kenya

Limited Mombasa. The study results in general concluded that there was a statistically significant effect of information

communication technology practice on procurement performance in Springtech Kenya Limited Mombasa.

7.1.3 Effect of Staff Training Practice on Procurement Performance

The study concluded that staff training practice through job rotation help Springtech Kenya Limited Mombasa to manage

procurement performance. Further the study concluded that staff training practice through appraisals and orientation help enhance

procurement performance in Springtech Kenya Limited Mombasa. The study results in general concluded that there was a

statistically significant effect of staff training practice on procurement performance in Springtech Kenya Limited Mombasa.

7.1.4 Effect of Procurement Policies Practice on Procurement Performance

The study concluded that procurement policies practice through internal process help Springtech Kenya Limited Mombasa to

manage procurement performance. Further the study concluded that procurement policies practice through SWOT analysis and

monitoring and evaluation help enhance procurement performance in Springtech Kenya Limited Mombasa. The study results in

general concluded that there was a statistically significant effect of procurement policies practice on procurement performance in

Springtech Kenya Limited Mombasa.

7.2 Recommendation

The study recommended the following:

i. That Springtech Kenya Limited Mombasa should adopt customer relationship management practice techniques such as reliability, assurance and responsiveness in order to enhance procurement performance in the organization.

ii. That Springtech Kenya Limited Mombasa should encourage the use of information communication technology practice and invest in technological infrastructure so as to enhance procurement performance in the organization.

iii. That Springtech Kenya Limited Mombasa should encourage recruitment and retention of technical experts with knowledge in various aspects of management and leadership skills so as to enhance procurement performance in the

organization.

iv. That Springtech Kenya Limited Mombasa should adopt procurement policies practice such as assurance, SWOT and responsiveness in order to enhance procurement performance in the organization.

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22. Hearnsh

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