Influence of Purchasing Strategy on the Performance of Seed Companies in Trans Nzoia County, Kenya
Keywords:Purchasing strategy, organizational performance, the seed companies.
Organizations prepare strategies with the sole aim of guiding top management leadership not only to describe their business organization, but also the results it strives for and methods it will use to achieve the results. It is from this background that the study aimed at establishing the influence of purchasing strategy on the performance of seed companies in Trans Nzoia County, Kenya. The study was significant since its findings would help direct policy makers in developing informed policy direction that would enhance sustainable seed production hence national development. The study was based on the contingency theory and theory of Mintzberg’s 5Ps of Strategy. This study used a survey design as it assumed quantitative methods in data collection. The target population consisted of the functional heads and the employees of the five seed crop companies in Tran Nzoia County making a total population of 553 respondents from which sample size of 232 respondents was selected to represent the population during data collection. The primary data was collected through questionnaires as the secondary data was collected through literature review. Quantitative data gathered from closed ended questions were first coded and then analyzed descriptively and using inferential statistics and presented using frequency distribution and cross tabulation tables. The study found a positive and significant relationship between purchasing strategy and organizational performance at the seed companies in Trans Nzoia County. The study recommends that efforts and commitment be made by seed companies in their purchasing strategies. This would help the companies achieve significant success in performance particularly increased sales and employee satisfaction. Backed with evidence of the positive effect of purchasing strategies, if the seed companies in Trans Nzoia County now re-examines their commitment in current Purchasing strategies with renewed vigour that ensures proper planning, evaluating and controlling the sourcing decision to serve its market demand effectively, their performance is significantly assured. Thus, seed companies currently struggling with sales volumes should re-examine their purchasing strategies.
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