FACTORS AFFECTING SUPPLIER APPRAISAL IN THE AIRLINE INDUSTRY: A CASE STUDY OF KENYA AIRWAYS LTD.

Abstract

The main objective of this study was to examine the factors affecting supplier appraisal in the airline industry a case study of Kenya Airways Ltd. with specific objectives being to establish how organizational policy affects supplier appraisal in the airline industry; to determine how pricing affects supplier appraisal in the airline industry; to determine how quality affects supplier appraisal in the airline industry and to establish how information communication technology affects supplier appraisal in the airline industry. The findings will be the reference point to other researchers in the same field that are interested in this area of studies, the study findings were beneficial to forming the basis for future research on the subject, providing a critical examination of the field. The findings of this study will provide important information to future researchers interested in this area with references and relevant literature to complete their research work. The knowledge generated by this study will enable scholars to improve and develop a better understanding on the subject. The study is anchored on the following theory's goal setting theory, institutional theory and expectancy theory. The study variables are organizational policy, pricing, quality and ICT. This study was carried out using descriptive research design. The target population of this study were 175 respondents comprised of senior managers, middle level managers and non-management that were randomly selected. Stratified proportion sampling was employed to obtain a suitable unit representative of analysis. This research study used questionnaires as the main data collection tool. The questionnaires were pilot tested before being administered to the target audience. Analysis of data was done using descriptive statistics. Specifically, means, averages and percentages were used in the study. The data analysis tools were simple tabulations and presentations of the report using spread sheets and the use of SPSS version 24.0. This study used inferential statistics to show the relationship that exists between the study variables. Data was analyzed using and quantitative methods. Data was then be tabulated and frequencies calculated on each variable under study and interpretations made from the field findings. Percentages will then be calculated and interpretation made. Study findings established that, the pricing in a given institution highly affects the supplier appraisal to a great extent. This is because it was noted that price charged by the various suppliers will determine whether they will be awarded a contract with the organization or not. Organizational policy is also concluded as a major factor determining the supplier appraisal since it was noted that organizational policy is a key factor in determining the goals of an organization.