Supplier Relationship Management and Procurement Performance of Level 6 Hospitals in Kenya
DOI:
https://doi.org/10.53819/81018102t7073Abstract
Health facilities aim to ensure that they have adequate stock in terms of medicines, machines and other related products to operate without any challenges associated with stockouts. The purpose of this study was to establish the effect of supplier relationship management on procurement performance of the six level 6 hospitals in Kenya. The study evaluated the effect of supplier relationship management on the procurement of level 6 hospitals in Kenya focusing on a census of all the six level 6 hospitals in Kenya namely Kenyatta National Hospital, Moi Teaching and Referral Hospital (MTRH), Kenyatta University Teaching, Referral and Research Hospital, Kisii Teaching and Referral Hospital, Coast General Teaching and Referral Hospital and Kakamega Teaching and Referral Hospital. The study was anchored on the Resource Based View. Primary data was collected using questionnaires which was distributed to procurement officers, stores personnel, accountants and hospital administrators. Reliability and validity of research instrument was conducted to ensure relevant data was collected. Cross sectional descriptive research design was utilized and regression analysis was adopted to test the study hypothesis. The significance of each individual predictor variable on procurement performance was tested using t-statistic and the overall significance of the models was tested using f-statistic. The study findings indicated that supplier relationship management had mean scores of 3.91 indicating generally positive practices in Level 6 hospitals in Kenya in regard to supplier relationship management. Correlation results indicated that supplier relationship management is positively and significantly associated with procurement performance (R=.718, p=.026). Regression results further indicated that supplier relationship management has a positive and significant effect on procurement performance (β=.084, p=.026). This implies that strengthening supplier relationship management such as improving communication, collaboration, and trust with suppliers can lead to measurable improvements in procurement performance, including efficiency, quality, and timely delivery of goods and services. The findings highlight the critical role of robust effective supplier engagement in enhancing procurement performance. The study thus recommends the hospitals to strengthen supplier relationship management by establishing long-term partnerships with reliable suppliers, enhancing communication and feedback mechanisms, and involving suppliers in planning processes to ensure consistent quality and timely delivery of medical supplies.
Key Words: Supplier Relationship Management, Procurement Performance, Level 6 Hospitals
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