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, cost estimation, and quality specifications on organization performance at the Geothermal Development Company. Because it will highlight the importance of widely used organizational performance and promote awareness of it. In their efforts to design work schedules that will complement the organization's strategic aims, academics and government stakeholders may find the results to be a useful reference tool. The Geothermal Development Company and other government institutions will find the findings important in determining whether the institution's procurement planning process needs to be addressed. 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. Documentation of ethical guidelines, including all correspondence, study dates, and data collection locations, shall be done. The regression is based on the organization's performance and procurement planning process as predictors. The findings demonstrate a positive correlation with R = 0.702 and R2 = 0.492, meaning that changes in each of the predictor categories could account for 49.2% of the variance in the organization’s performance, the variances of the elements not included in this analysis account for the remaining 50.8%. The study’s findings demonstrated the significant impact of the predictor elements on the organization. The model indicated that the predictor variable with the biggest influence on the quality specification was supplier selection., followed by cost estimation, need identification, and quality specification, which had the least influence on the organization's performance. Study recommends that GDC management recognize that procurement planning practices are not static and that preparation of cost estimation and forecasting in order to enhance performance, needs should be determined, tendering procedures should be established, budgets should be estimated, and user departments should be involved. This will contribute to the upkeep of ethical procurement practices as well as the attainment of high standards of efficacy and efficiency. Additionally, as most projects have overruns, timeframes must be adhered to as intended in order to prevent delays in the supply and execution of services. 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.