THE MODERATING ROLE OF INTEGRATIVE SUPPLY CHAIN TECHNOLOGY IN THE RELATIONSHIP BETWEEN PROCUREMENT GOVERNANCE AND SERVICE DELIVERY: CASE OF MINISTRIES, DEPARTMENTS AND AGENCIES IN KENYA

Abstract

The overall goal of the study was to establish the moderating role of integrative supply chain technology on the relationship between procurement governance and service delivery in MDAs in the Kenya. To fulfill the main goal, a conceptual model was developed based on previously examined literature. A PLS-SEM model that corresponded to the conceptual model was also created. This study adopted a descriptive cross-sectional survey research design. To test the proposed relationship, a survey was done and data collected. This study’s population included all public procuring institutions in Kenya. PLS-SEM was used to evaluate the relationship proposed in the conceptual and SEM model of the study. The SmartPLS 3.3.3 software was used in the analysis. The test for moderation was done in two stages where the moderating effect was tested for within the current model and subsequently the direct effect of procurement governance on service delivery was also tested. The results indicated that integrative supply chain technology has a negative moderating effect on the relationship between procurement governance and service delivery, however this effect was found to be statistically
insignificant. This means that integrative supply chain technology does not have a moderating effect on the relationship between procurement governance and service delivery. However, the results of the direct relationship between procurement governance and service delivery indicated a statistically significant relationship. The study revealed that a number of reasons including some departments still using manual systems affected the implementation of integrative supply chain technology may have led to this. Furthermore, the integrative supply chain technology is only used by a small number of companies. Top managers don’t have the necessary integrative supply chain technology expertise or knowledge, and there is a shortage of supply chain experts. In addition, top managers are unable to develop an understanding of how daily supply chain management activities relate to the service delivery of the entire company. Despite the advantages of an integrative supply chain system, many