Influence of Procurement Capabilities on Firm Performance of Manufacturing Entities in Kenya

Procurement is a dynamic function that is crucial to the productivity and general performance of a manufacturing entity. The purpose of manufacturing is to produce value in form of products and services, through different processes and activities, which are performed by a network of organizations both upstream and downstream. These processes form an integrated supply chain where raw materials are converted into final finished products for the end consumer. In order to realize successful performance, the management of manufacturing entities must have a holistic comprehension of procurement and implement it accordingly. Therefore, the objective of this study was to investigate the influence of procurement capabilities on firm performance of manufacturing entities in Kenya. The population of interest for this study was manufacturing firms within Nairobi and its environs. A sample of 69 manufacturing entities was randomly selected to participate in this study. Data was collected using questionnaire. Descriptive and inferential statistics was used aided by Statistical Packages for Social Sciences version 24 to compute the response. The study recommends that the management of manufacturing entities should exploit procurement capabilities on the day to day operation with the aim of ensuring financial viability and a competitive edge over other market competitors thus attaining superior firm performance.