Effect of Procurement Practices on Organisational Performance of Multinational Corporations in Kenya: A Case of Oracle Technology Kenya Limited

Abstract

This study aimed to look at the role of procurement practices on organizational performance of multinational companies in Kenya. The study found out that information communication technology, supplier partnership, strategic outsourcing and procurement risk management had positive influence on organizational performance. Oracle company was efficient in procurement process through technology adoption. The company delivered service in good time using technology. The company streamlined procurement. Supplier partnership had a positive influence on organizational performance. Supplier partnerships enabled reduction in lead time as supported. Superior supplier performance improved company performance. Strategic outsourcing had a positive influence on organizational performance. User departments were actively involved in the sourcing process. Strategic sourcing ensured that there was increased responsiveness to customers changing needs. Procurement risk management had a positive influence on organizational performance. Policies and procedures to control risk didn't create bottlenecks. Policies and controls were in place to mitigate risk. The study recommended Oracle company ought to request for quotations/ projects using technology tools. Oracle company ought to be efficient in procurement process through technology adoption. The company ought to deliver service in good time using technology. Supplier's relationship ought to promote partnership in market. Supplier's relationship ought to aid organization adoption of cost-effective design choices. Strategic sourcing at Oracle Technology ought to ensure lower total costs. Supplier background information ought to be confirmed before procurement. User departments ought to be actively involved in the sourcing process. Strategic sourcing ought to ensure that there is increased responsiveness to customers changing needs. Policies and controls ought to be effective in deterring theft, fraud and other problems. Policies and procedures to control risk ought to create bottlenecks. Policies and controls ought to be in place to mitigate risk.