Abstract:
Purpose: This study examined how supplier integration moderates
the relationship between supplier development and procurement
performance in steel manufacturing firms within Nairobi City
County, Kenya.
Research methodology: A mixed method research design and
positivism approach were adopted for this study. A census with a
population of 360 employees within the 10 steel firms in Nairobi
City County, Kenya was conducted. Primary data was collected
using questionnaires. The collected data was analyzed using SPSS
V.26.0 and SmartPLS 4.0 programs to test for both direct and joint
effects of the variables.
Results: The results of the study revealed that supplier selection
(β=0.50, t=8.309, p<0.05), supplier partnership (β=0.136, t=2.872,
p<0.05), and supplier evaluation (β=0.127, t=2.884, p<0.05) have
a positive and significant impact on the procurement performance.
On the other hand supplier training (β= -0.086, t=1.683, p>0.05)
had an insignificant effect on procurement performance. The study
findings also show that supplier integration had significant
negative effects on: supplier partnership (β= -0.497, t=10.702,
p<0.05), supplier evaluation (β= -0.097, t=2.323, p<0.05) and
supplier training (β=0.264, t=4.988, p<0.05). However, the results
indicate that supplier integration has no significant impact on
supplier selection (β= -0.079, t=1.108, p>0.05). The indirect effect
analysis showed that supplier integration (β= -0.142, t=1.108,
p<0.05) has a negative and significant impact on procurement
performance.
Contributions: Steel manufacturing firms need to emphasize the
significance of supplier selection, efficient communication and
collaboration with suppliers, and continuous performance
monitoring and risk management to improve procurement
performance. These factors enhance the reliability, quality, and
cost-effectiveness of their procurement operations, resulting in
better outcomes and a competitive advantage in their respective
markets.
Keywords: supplier selection, supplier evaluation, supplier
training, supplier partnership, supplier integration
