Agile supply chain strategies and procurement performance of state coorporations in transport sector,Kenya.

Abstract

This study examined the effect of agile supply chain strategies on procurement performance of state corporations in Kenya’s transport sector. Despite procurement reforms, many state corporations face persistent inefficiencies, including project delays, cost overruns, and supplier underperformance, mainly due to limited supply chain visibility, rigid procurement systems, poor market responsiveness, and weak internal process integration. Notable examples include procurement-related losses by Kenya Airports Authority and delays within Kenya Railways Corporation. These challenges necessitated exploring agile strategies to enhance procurement outcomes. The general objective of the study was to determine the effect of agile supply chain strategies on procurement performance. Specifically, the study aimed to assess the influence of market sensitivity, and process integration on procurement performance. The study was guided by Market Orientation Theory and Resource-Based View (RBV). A descriptive survey design was adopted, targeting a census of 108 procurement staff from state corporations in the transport sector. Data was collected using a structured questionnaire designed around the study variables. A pilot test involving 11 respondents was conducted to assess the instrument’s validity and reliability using Cronbach’s Alpha and AVE analysis. Data was analyzed using descriptive statistics (means and standard deviations) and inferential statistics (Pearson’s correlation and multiple linear regression) with diagnostic tests for multicollinearity, normality, and heteroscedasticity. The findings revealed that all agile supply chain strategies had a positive and statistically significant effect on procurement performance. Process integration (β = 0.398, p = 0.000) had the greatest influence, followed by market sensitivity (β = 0.364, p = 0.000). The study concludes that adopting agile supply chain strategies—particularly enhancing process integration and market responsiveness—significantly improves procurement performance. It recommends investing in market monitoring, and strong inter-departmental integration. These findings contribute to supply chain literature and offer practical recommendations for policy and procurement reform in Kenya’s public transport sector.