Effects of Public Procurement Processes on Organization Performance

The general objective of this study was to analyze the effects of public procurement processes on organization performance.It determined and analyzed the gaps in public procurement in county assemblies using county assembly of Mombasa as a case study. This was guided by three specific objectives: to establish the effects of human resource skill level in the procurement department, to identify the influence of stakeholder integration on the performance of the organization and to determine the effects of supplier management on the performance of the organization. There are numerous cases of exaggerated prices, and behind the schedule projects which is contrary to the public procurement and disposal Act 2005. The Public sector for instant has lost billions of shillings out of procurement decisions made by accounting officers who are not necessarily procurement professional. A stratified random sampling technique was used to select the sample; the strata’s were derived from the various categories of stakeholders that are involved in the public procurement process directly or indirectly. The study used a proportion of 30% from each stratum to select 111 respondents. The study relied on primary as well as secondary data. Primary data was collected through questionnaires to meet the objectives of the study. The questions were both open ended and closed ended. Secondary data was collected from relevant literature review, business magazines, journals, internet and other relevant material. Responses in the questionnaires were tabulated, coded and processed by the use of a computer statistical package for social science (S.P.S.S) version 20 to analyze the data descriptive statistics such as mean and standard deviation. Tables were used to present responses and facilitated comparison. The study revealed the impact of public procurement process on the organization performance. The research was limited to a public entity and thus the researcher recommend further study in the topic of public procurement process among the parastatals and analysis of the challenges experienced. The study showed a high correlation between stake holder integration and organizational performance as well as a high correlation between human resource skill level and organizational performance. It however showed a weak correlation between suppliers’ management andorganizational performance. The M.C.A and other County assemblies should also enhance stakeholder involvement in their procurement processes by allowing for more public participation in the process.