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Browsing Master's Level by Author "Bikiltu Kenna Degu"

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    Effect of procurement practices of medicine and medical supplies on organizational performance: a case of Tenwek Hospital, Bomet, Kenya
    (Adventist University of Africa, 2024-03) Bikiltu Kenna Degu
    Procurement practices constitute a pivotal function crucial for shaping the performance of organizations, irrespective of their public or private nature. Despite this evidence, many hospitals in Kenya struggle with poor performance which they attribute to poor procurement practices that have been adopted by the hospitals as one of the main reasons. This study specifically examined the impact of procurement practices of medicine and medical supplies, on the organizational performance of Tenwek Hospital in Kenya. The evaluation of Tenwek Hospital's performance considered two dimensions: financial performance and the improved healthcare services. Once the relationship between procurement practices and organizational performance is established, this knowledge can guide hospital administrators to consider key elements of procurement practices, such as stakeholder engagement, procurement planning, and supplier management, as effective strategies for improving performance. This research employed a quantitative approach, specifically adopting a causal cross-sectional research design to explore the relationship between the dependent and independent variables. The target population of this study were the workers in procurement department, finance department, and the health professionals of Tenwek hospital. To guarantee the inclusion of appropriate and representative participants in the study, the research employed a combination of purposive sampling and simple random sampling methods. The study's validity was confirmed by an overall Cronbach alpha reliability coefficient exceeding 0.7. A self-designed questionnaire was used as the data collection tool. Data for this research were collected at Tenwek Hospital, with a sample size of 240 respondents. A 100% response rate was achieved from the participants. The data analysis utilized descriptive statistics, which included calculating the means, standard deviations and averages to describe the demographic variables and to assess the extent to which the procurement practices were being implemented. Additionally, Pearson correlation and multiple linear regression analyses were conducted to explore the relationships between the variables. The Pearson correlation results demonstrated positive relationships between stakeholder engagement (r = 0.585, p < 0.005), procurement planning (r = 0.653, p < 0.005), and supplier management (r = 0.596, p < 0.005) with organizational financial performance. Similarly, positive correlations were found with organizational performance in improved healthcare services, including stakeholder engagement (r = 0.681, p < 0.005), procurement planning (r = 0.674, p < 0.005), and supplier management (r = 0.556, p < 0.005). The regression analysis provided significant insights into the relationship between the independent and dependent variables. The adjusted R2 indicated that 45% and 49.8% of the variability in financial performance and improved healthcare services respectively can be explained by the three predictor variables. Moreover, the ANOVA results showed a p-value below 0.05, which confirmed a significant relationship between the three procurement practices, and both financial and improved healthcare services performance. Regarding financial performance, the standardized coefficients (Beta) for procurement planning (β = 0.394, t = 4.04, p < 0.05) and supplier management (β = 0.241, t = 3.35, p < 0.05) demonstrated significant effects, with procurement planning exerting a slightly stronger effect. However, stakeholders’ engagement (β = 0.097, t = 1.107) exhibited the lowest standardized coefficient and lacked statistical significance (p > 0.05). On the other side, concerning improved healthcare performance, stakeholders’ engagement (β = 0.379, t = 4.527, p < 0.05) and procurement planning (β = 0.289, t = 3.101, p < 0.05) showed significant effects, with stakeholders’ engagement having a slightly greater effect. In contrast, supplier management (β = 0.093, t = 1.353) had the lowest standardized coefficient and lacked statistical significance (p > 0.05), indicating no significant effect on improved healthcare services performance. The study recommends the following: (1) enhancing Tenwek Hospital's procurement practices by improving stakeholder engagement through consultative processes and structured communication; (2) refining procurement planning to balance timely acquisition and minimize service interruptions; (3) addressing stock outs through detailed analysis and supplier management by implementing a robust supplier selection and evaluation process; (4) and managing emergency orders with contingency plans. It is also recommended to enhance procurement planning and supplier management to improve financial performance, while emphasizing the significance of stakeholder engagement in improving healthcare service delivery.