Procurement Planning Process and Organization Performance in the Energy Sector in Kenya: A Case Study of Geothermal Development Company

Abstract

The aim was to examine procurement planning processes on organization performance at Geothermal Development Company, and establish the influence of supplier selection, need identification on organization performance at the Geothermal Development Company. The study's fundamental anchor theory was goal-setting theory, which is backed by institutional theory and a resource-based view. Utilizing stratified random sampling, using a descriptive research methodology, 232 people were selected as the sample size out of 550. Questionnaires were used in the process of gathering data. Ten randomly chosen employees from the target population participated in the pilot project. SPSS version 27 and basic statistics were used to analyze the quantitative data. Tables were used in the data presentation. Inferential statistics, regression analysis and correlation, were utilized to show the relationships between the variables. The regression is based on the organization's performance and procurement planning process as predictors. The findings demonstrate a positive correlation with R = 0.684 and R2 = 0.573, meaning that changes in each of the predictor categories could account for 57.3% of the variance in the organization’s performance, the variances of the elements not included in this analysis account for the remaining 42.7%. Study recommends that GDC management recognize that procurement planning practices are not static and needs should be determined, tendering procedures should be established, budgets should be estimated, and user departments should be involved. In order to ensure that procurements are successful, GDC management should make sure that appropriate procedures are put in place during planning, with input from procurement staff and the user department, and that progress reports are escalated for required action. Further investigation into other variables is required to account for the remaining change in purchase planning procedures. based on the findings of this investigation, the conclusion, and the advice that came after. This additional research should aim to corroborate the findings of the current study and offer fresh data.