The Influence of Purchasing Maturity on Ethical Procurement in Kenya: A Survey of Procurement Professionals in Kenya

Abstract

Ethical behaviour in procurement has been and is still a central issue in supply chain matters. In spite of immense issues in this area, few studies have delved into the precursors that generate the recurrent malpractices in the procurement process. No study has been done in Kenya to attest this issue. This study seeks to answer the underlying issues to ethical procurement in organization and apparent linkages to maturity in the procurement function. The study employed mixed method approaches methodology. Primary data was collected in two phases (qualitative data collection and then quantitative data collection. Probabilistic and Non Probabilistic sampling techniques were utilized as appropriate to collect findings from the procurement profession who were the target population. Data was analyzed from 107 respondents using descriptive statistics, correlation, multiple regression analysis and content analysis. Validity of the data collection instrument was initially done through pretesting questionnaire on a two phase: with MBM graduates and with Purchasing Professionals. Further, Factor analysis was also carried out for validity while reliability was tested using Crobanch Alpha. While as preconceived dependent variable had four factors, the varimax Rotation revealed the three factors explain purchasing maturity are professional relationships, supplier selection and purchasing positioning. Pearson’s correlation coefficient was used to determine relationship between independent and dependent variables while regression analysis was used to predict the effect of purchasing maturity and ethical procurement. The study findings showed that professional relationships (?=0.541, P= 0.000) had showed positive effect and significantly influenced ethical procurement. However, Supplier selection in Kenya (?= - 0.261, P= 0.745) had a negative effect and did not significantly influence ethical behaviour while purchasing positioning (?=0.276, P= 0.001) had a positive effect and significantly influenced ethical procurement. The overall influence on the regression mode was shown by the coefficient of determination (adjusted R 2 of 43.1%). However, the paradox of reversal of gains in the purchasing maturity process was well revealed by the content analysis. This as well explains the negative effect of supplier selection and ethical procurement. The study concludes that procurement maturity influences ethical procurement. The study suggests that more studies be done on ethical procurement in Kenya focusing more on particular industries, for instance comparative studies of ethical behavior in procurement on private and public sectors.

Keywords: Procurement, Ethics, Supply Chain Management