Supplier Relationship Management Practices and Project Procurement Performance in Kenya: A Case of Nairobi City County

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Date

2025-10

Journal Title

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Volume Title

Publisher

Daystar University, School of Business and Economics

Abstract

Supplier Relationship Management practices in Nairobi City County have historically faced significant challenges, contributing to procurement inefficiencies and corruption. This study aimed to explore the effect of SRM practices on procurement performance in Nairobi City County projects. The study's objectives were to: examine the relationship between supplier collaboration and project procurement performance; determine the relationship between contract management and project procurement performance; assess the relationship between risk management and project procurement performance; and determine the moderating effect of procurement ethics on the relationship between SRM practices and project procurement performance in Nairobi City County. The theoretical framework incorporated stakeholder theory, Transaction Cost Economics (TCE) Theory and Resource-Based View (RBV) theory. The study employed a descriptive and correlational research design, targeting 496 individuals in Nairobi City County. A sample size of 149 participants was selected. Data was collected using questionnaires and analyzed using descriptive and inferential statistics. The study found that supplier collaboration, contract management, and risk management practices all had positive relationships with project procurement performance. However, there were significant shortcomings in areas such as information sharing, contract amendments, and risk analysis. Procurement ethics was found to positively moderate the relationship between SRM practices and performance. The study concluded that while some SRM practices were effectively implemented, there were substantial areas for improvement, particularly in transparency, risk management, and ethical practices. The study recommends that Nairobi City County enhance joint planning and information sharing with suppliers, implement more transparent contract management procedures, develop robust risk mitigation strategies, and strengthen adherence to ethical procurement principles. Additionally, regular training and review of SRM practices are recommended to ensure their continued relevance and effectiveness.

Description

Master of Business Administration in Project Management and Supply Chain Management.

Keywords

Supplier Relationship Management practices, Nairobi City County

Citation

Mwangi, T. N. (2025). Supplier Relationship Management Practices and Project Procurement Performance in Kenya: A Case of Nairobi City County. Daystar University, School of Business and Economics