Effect of-buyer-supplier-development-on-management-unit-in-uasin-gishu-county-government

International Journal of Strategic Management and
Procurement (IJSMP) ISSN: 2664-049x 1 (3) 46-
58, October, 2019
Otieno and Kibet (2019) www.oircjournals.org
Effect of Buyer Supplier Development
on Performance of Contract
Management Unit in Uasin Gishu
County Government
1Otieno Janet Akinyi 2
Yusuf Kibet
1
Degree of Master of Science (Procurement andContract Management) 2
Lecturer, Jomo Kenyatta University
of Agricultureand Technology
Type of the Paper: Research Paper.
Type of Review: Peer Reviewed.
Indexed in: worldwide web.
Google Scholar Citation: IJSMP
International Journal of Strategic Management and Procurement (IJSMP)
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How to Cite this Paper:
Otieno, J. A., & Kibet, Y. (2019). Effect of Buyer Supplier Development on
Performance of Contract Management Unit in Uasin Gishu County
Government. International Journal of Strategic Management and Procurement 1(3) 46-58.

58, October, 2019
47 | P a g e
Effect of Buyer Supplier Development on
Performance of Contract Management Unit in
Uasin Gishu County Government
1Otieno Janet Akinyi2
Yusuf Kibet
1
Degree of Master of Science (Procurement and Contract Management) 2
Lecturer, Jomo Kenyatta University of Agriculture and
Technology
ABSTRACT
Buyer supplier development is important to
organizations in management of contracts by
minimizing operation costs in order to increase
firm performance. However, the increasing number
of complaints regarding failed attempts to deliver
goods and services at the right time has made it
impossible for some governmental projects to be
completed at the stipulated time. Therefore, the
study sought to assess the effect of supplier buyer
development on performance of contract
management unit in Uasin Gishu County
Government. Social exchange theory was used in
conducting the study. This study was conducted
through descriptive research design. Respondents targeted by the study were county finance department staff,
chief officers, department directors, ICT department staff, county revenue staff, supply chain staff and relevant
stakeholders to contract management unit. The study involved 360 respondents from the County Government.
Data was collected by use of questionnaire. Reliability of research instruments was tested using Cronbach alpha
0.7. Stratified random sampling and simple random sampling was used to select the sample size of 85 respondents.
The data was collected and analyzed by descriptive statistics simple frequencies and percentages and inferential
statistics using multiple regression model and correlation. The study used Pearson correlation model to determine
the existing relationship between the study variables. The study findings revealed that study variable buyer
supplier development β=0.162, p<0.05 positively and significantly affect the performance of contract
management unit. The study concludes that supplier development effects performance of procurement function.
The study recommends that contract management unit of Uasin Gishu County Government should incorporate
buyer supplier development practices to improve their performances. Policy makers in public and private sector
involved in partnership projects will benefit from this research finding in benchmarking their policies, assist in
assessing the BSR framework of a given economy and help to understand the cycle of BSR.
Introduction
Performance is the measure of financial and non-
financial indicators. An important factor determines
the effectiveness of a sound contract management
unit of an organization. The major benefit is creation
of value for money and achievement of goals. To
achieve this, there is need for a clear buyer supplier
development plan. Organizations that implement
these strategies perform much better than those that
do not (Cruz & Marques, 2013).
Buyer-supplier relationships refer to commercial
transactions between organizations for the purchase
and supply of goods or services (Mysen, 2012). A
buyer-supplier development is an agreement
between two or more parties to pursue a set of agreed
upon objectives needed while remaining
independent organizations but pursue mutual
benefits (Khan, Liang &, Shahzad 2015). (Ferro,
Padin, Svensson, & Payan, 2016) stated that there
are five relationship variables (commitment,
conflict, economic & non-economic satisfaction,
and trust) used in developing and maintaining good
buyer supplier developments. In this case, the parties
that join devote towards providing resources such as
products, distribution channels, manufacturing
capability, project funding, capital equipment,
knowledge, expertise, or intellectual property. The
buyer-supplier development often involves transfer
ARTICLE INFO
Received 1st
October, 2019
Received in Revised Form 11th
October, 2019
Accepted 12th
October, 2019
Published online 13th
October, 2019
Key Words: buyer, supplier, development,
contract, management.

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48 | P a g e
of knowledge and expertise, economic
specialization, shared expenses and shared risk
(Cruz & Marques, 2013). In relation to public
sectors, the main aim of buyer-supplier relationships
is to reduce stiff competition and increase public
service delivery (Villena, Revilla, & Choi, 2011). In
this study, the measures of buyer supplier
development will involve buyer-supplier
development.
Globally, buyer-supplier relationships have made
improvements and stiffened competition by gaining
greater performance of the supply chain
management unit and reducing any public institution
risk (Leonidou et. al., 2011). The reasons behind
involvement of public sectors on buyer-supplier
relationships include revenue enhancement and cost
reduction in government business operations by
minimizing corruption. Khan, Liang and Shahzd
(2015) examined the effect of buyer-supplier
partnership and information integration on supply
chain performance of Chinese manufacturing
industry where the revealed that buyer-supplier
development significantly affects trust and guanxi,
which subsequently effects two elements of
information integration, namely, quality information
and real-time information and trust and guanxi play
vital role in sustaining better relationship between
supplier and business for long run and growth.
In United States, firms have resolved to engage in
buyer supplier relationships to reduce logistics costs
(Coyle, et. al., 2016). Logistics costs represent such
a significant proportion of the total costs that it is
possible to make major cost reductions through
fundamental engineering logistics processes. The
same case has also necessitated firms in Europe and
Asia to consider logistics as a key point of focus for
simultaneously increasing shareholder and customer
value. Because of this, better supplier relations
enhance supply chain performance and add to
competitiveness of suppliers in the market.
Improved logistics means giving the services that
customers want at the lowest possible cost since it is
generally accepted that the need to understand and
meet customer requirements is a prerequisite for
survival in a competitive environment for goods and
services.
In South Africa, collaboration has been related to
low cost, predictable buyer supplier development
and assurance of high-quality products and services
in a supply chain (Staritz, 2010). Therefore, firms
have resolved to integrating logistics and supply
chain management to provide multiple ways of
increasing efficiency and productivity in a supply
chain. A privilege resulting from this has been
significant reduction in unit cost thus improving
organizational performance. Improved logistics
means giving the services that customers want at the
lowest possible cost. In summary, the need to
understand and meet customer requirements is a
prerequisite for survival in a competitive
environment for goods and services.
Firms in Kenya enhance supply chain management
to achieve linkage and co-ordination between the
process of other entities in the pipeline, such as
suppliers, customers, and the business entity itself
(Rushton, Croucher, & Baker, 2014). Buyer supplier
developments including logistics support and supply
chain concepts can further be enhanced through
integrated systems. National and county
governments through the integrated Financial
Management Systems (IFMIS) ensure delivery of
quality products and services in the supply chain. It
facilitates planning and coordinating the materials
flow from source to customer seamlessly rather than
managing the goods flow as a series of independent
activities (Hendriks, 2013).
Statement of the Problem
Contract management unit performance is measured
by reduced number of complaints regarding failed
attempts to deliver goods and services at the right
time (Handfield, Cousins, Lawson, & Petersen,
2015). This has made it impossible for some
governmental projects to be completed at the
stipulated time. Moreover, public institutions have
failed to purchase high quality goods and services at
a considerate price. Project rate completion has been
reported to be low in public institution. For instance,
quite often operations of public universities have
come to a halt due to delay of supplies of critical
items or worse still failure by suppliers to supply
critical items required for day to day operations
(Njoroge, & Gathungu, 2013). Most of the public
sectors are still lagging behind in terms of supply
chain unit performance. Leonidou Palihawadana,
Chari and Leonidou (2011) asserts that public
sectors are faced with challenges of maintaining
effective distributing of goods and services to the
relevant functions that they are mandated with. It is
a common practice seen in public sectors where
majority of suppliers are underpaid and thus
resulting into lack of motivation towards achieving
targets set by public sectors (Leonidou et. al., 2011).
In an ideal situation, the task of a supply chain
management unit is to increase effective flow of
goods and services to an institution (Fredendall, &
Hill, 2016). However, in low-income countries,
most public institutions have not been able to
advance their communication strategies. There is

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less communication between buyers and suppliers,
given that information and communication
technology related facilities have not been put into
consideration in most public sector partnership. As
such Lotfi, Mukhtar, Sahran, & Zadeh, 2013) did a
study on information sharing in supply chain
management in manufacturing sector. Rashed
Abdullahil and Zaheed (2010) did another study on
effect of information and knowledge sharing on
supply chain performance in Bangladeshi
readymade garments industry. (Khan, Liang, &
Shahzad, 2015) did a study on the effect of buyer-
supplier partnership and information integration
among Chinese manufacturing industry. There are
fewer studies based on buyer supplier development
in public sectors of middle-income countries
including Kenya thus creating a huge knowledge
gap. This study therefore seeks to establish the effect
of buyer-supplier development on the performance
of contract management unit in Uasin Gishu County
Government, Kenya.
Objective of the Study
The objective of the study was to assess the effect of
buyer supplier development and performance of
contract management unit in Uasin Gishu County
Government.
Research Hypothesis
H01: Buyer supplier development has no
significant on the performance of contract
Government.
Theoretical Review
This study was guided by social exchange theory.
Social Exchange Theory
The study was guided by Social exchange theory
developed by Homans in 1983. The theory is a
concept based on the notion that a relationship
between two people (buyer and supplier) is created
through a process of cost-benefit analysis. The
theory is designed to determine the effort poured in
by an individual in a person-to-person relationship.
The measurement of the pluses and minuses of a
relationship may produce transaction that can
determine if either buyer or supplier is putting too
much effort into a relationship. The theory is unique
in the sense that it doesn’t necessarily measure
relationships on emotional metrics (Albert & Tullis,
2013). Rather, its systematic processes rely on
mathematics and logic to determine balance within
supplier-buyer relationship. While the theory can be
used to measure supplier buyer relationships, it can
also be applied to determine the balance within their
development (Igarashi, Boer, & Fet, 2013).
The foundation of social exchange theory rests on
several core assumptions regarding human nature
and the nature of relationships. The first assumption
is that humans tend to seek out rewards and avoid
punishments. Another tenet is the assumption that a
person begins an interaction to gain maximum profit
with minimal cost. A third assumption is that
individuals tend to calculate the profit and cost
before engaging. Finally, the theory assumes that
people know that this “payoff” will vary from person
to person, as well as with the same person over time
(Priporas, Stylos, Rahimi & Vedanthachari, 2017).
These levels of expectation can often work in
conjunction with another core concept of the
theory’s functionality: costs vs. benefits. This is
perhaps the theory’s most known commodity, as it
establishes a “give and take” metric that can be
analyzed to determine how much effort one party
may be putting into the relationship.
The relevant of this theory to the study is that the
costs component in the theory are things that a buyer
or supplier may see as a negative in a relationship.
Benefits component of the theory are traits that
buyer or supplier may see as positive attributes. The
partner who’s always willing to lend an ear in times
of trouble may offer plenty of benefits. A
worthwhile relationship will be as far away from the
cost category as possible. Even if there are a few
costs involved in the relationship and human
behavior dictates there probably will be if enough
positive traits outweigh the negative traits, then the
costs hold no value.
The criticism of social exchange theory is that it
lacks sufficient theoretical precision, and thus has
limited utility (Cropanzano, Anthony, Daniels &
Hall, 2017). Scholars who apply social exchange
theory are able to explain many social phenomena
in post hoc manner but are severely limited in their
ability to make useful a priori predictions regarding
workplace behavior (Sheer, 2015).
Empirical Review
This section presents past studies done on buyer
supplier development.
Supplier Evaluation and Service Delivery
Kadir, Tam and Hassan (2011) made a case study in
Malaysian automotive industry on Patterns of
Supplier Learning. The study used a case study
approach and used interviews as the main collection
tool and questionnaire as the supplementary tool.
The study sample 8 respondents to provide the
needed information. The study found that buyer-
supplier agreement programs support the
development of a supplier's capabilities usually with
the assistance of a buyer. Buyer-supplier

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development also depends on supplier’s interest and
how they explore them self to increase their
capabilities. The study used a case study approach
with a small sample size and therefore the data
collected cannot necessarily be generalized to the
wider population.
Lukhoba and Muturi (2015) conducted study on the
effect of buyer-supplier agreement on supplier
performance: a survey of food manufacturing
companies in Kisumu County. The study used
descriptive survey and the study population of was
30. However, some qualitative data were collected
from the open-ended questions. Secondary data was
involved in the collection and analysis of published
material and information from other sources such as
annual reports, published data. The study concluded
that early supplier involvement, financial support,
supplier training and supplier incentives have a
positive effect on supplier performance. The study
established that the benefits that accrue from buyer-
supplier agreement programs include improved
delivery performance, reduced lead-time, getting
materials of the right quality with minimum defects
and lowering the costs. This study only focused on
only the supplier as the dependent variable other
than supply chain units.
Wachiuri, Waiganjo and Oballah (2015) focused on
the role of buyer-supplier agreement on
organizational performance of manufacturing
industry in Kenya. A descriptive case study design
was used. Statistical analysis was carried out using
SPSS. The target population was the manufacturing
industry in Kenya. The sampling technique used in
this study was stratified random technique. Out of
target population of 150 a sample size of 50
respondents were selected. Open and closed
questionnaire were used as research instrument for
this study. The study concludes that indeed buyer-
supplier agreement is crucial in improving the
supplier performance and the organization
performance.
The study established a significant positive
relationship between three elements of buyer-
supplier agreement namely financial support,
rewards and firm involvement and organization
performance; therefore, firms in manufacturing
industry ought to engage more in activities that help
improve the operations of their suppliers. However,
this study used a cases study research design, which
has its limitation. Data obtained from a case study
cannot necessarily be generalized to the wider
population. Also, data was collected only from the
manufacturing industry. Other sectors may give
different opinions.
Makokha Nambuswa, Namusonge and Nambuswa
(2017) did a study on the effect of buyer-supplier
agreement on procurement performance in
Bungoma County. Descriptive research design
through a case study on Nzoia Sugar Company in
Bungoma County was used to undertake the study.
Data was collected from a 96 out of the initial target
of 116 respondents. Descriptive statistics like
means, frequencies and percentages were used. In
addition, Pearson correlation was used to show the
correlation between the variables which revealed a
positive and significant results between supplier
incentive and procurement performance (p<0.01, r =
0.716). Findings of the study revealed that buyer-
supplier agreement positively effects performance.
This study is limited to Kakamega County only.
Conceptual Framework
Conceptual framework displays the relationship
between buyer supplier development and
performance of contract management units. The
independent variable is hypothesized to affect the
dependent variable, which was performance of
contract management units.
Independent Variables Dependent Variable
Figure 1 Conceptual Framework
Research Methodology
Research Design
The study adopted descriptive research design in
conducting the study. According to Kothari & Garg
(2014), descriptive design involves fact finding
enquires of kinds, where the researcher has no
control of the variables and can only report what has
happened or what is happening. The design was
appropriate for this study because it enabled
description of the situation and establishment of the
relationship between the variables. The study
utilized both quantitative and qualitative research
Buyer Supplier Development
 Supplier involvement
 Supplier training
 Supplier incentives
Performance of Contract Management Unit
 No. of Deliveries
 Quality of Services/Goods
 Timely Delivery
 Cost reduction

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approaches that are ideal in collection of data
questionnaire. Quantitative research approach was
relevant to the study as it enhanced the collection of
numeric data from a large number of respondents.
Target Population
Target population refers to all members of a
hypothetical set of people, events of subjects to
which a researcher wishes to generalize the result of
the study (Ngechu, 2017). The target population was
drawn from staff and stakeholders of Uasin Gishu
County Government. The accessible population of
the study was 360 employees and stakeholders.
Table 1 Target Population
Respondents Accessible
Population
CECM 10
County finance department staff 10
Chief officers 15
Department Directors 30
ICT Department 10
County revenue staff 15
Supply Chain Management staff 20
Stakeholders/Representatives 250
Total 360
Sampling Frame
Population from which target elements for
conducting a study make up the sampling frame
(Acharya, Prakash, Saxena, & Nigam, 2013). They
make up the operational elements under which the
study was carried out. The sampling frame for this
study was list of county governments.
Sample Size and Sampling Technique
The study used stratified sampling technique and
simple random. Stratified sampling is a probability
sampling procedure in which sub-samples are drawn
from samples within different strata that are equal on
some characteristics. The reasons for taking a
stratified sample was to have a more efficient sample
that could be taken on the basis of simple random
sampling, and; to assure that the sample accurately
reflect the population on the basis of the criterion or
criteria used for stratification (Marshall, 1996).
Stratified sampling was used to categorically choose
the departments that will take part in the study. Upon
calculating the sample size, the study used
proportionate stratified sampling method to allocate
each stratum a proportion of the total sample size
using their corresponding target population.
The study employed simple random sampling
method to sample all the respondents. Simple
random sampling is the sampling procedure that
assures each element in the population an equal
chance of being included in the sample. For simple
random sampling, the sampling process is straight
forward (Marshall, 1996) but is most appropriate
when a good sampling frame exists and when the
population is geographically concentrated or the
data collection technique does not involve travelling
(Singh, & Masuku, 2014). Thus, this makes it
possible to use simple random sampling, given that
the stratified groups have an even respondent
characteristic.
Selecting a sampling frame was the next step after
determining the target population. A sampling frame
is the list of elements from which the sample may be
drawn (Singh and Masuku, 2014). The researcher
actively will select the most productive sample to
answer the research questions. The sample size of
the respondents was obtained using coefficient of
variation. Nassiuma (2000) asserts that in most
surveys or experiments, a coefficient of variation in
the range of 21 %< C< 30% and a standard error in
the range 2 %< e < 5% is usually acceptable. The
study therefore will use a coefficient variation of
21% and a standard error of 2%. The lower limit for
coefficient of variation and standard error was
selected to ensure low variability in the sample and
minimize the degree of error. Sample size
determination Formula
𝑛 =
𝑁𝐶2
𝐶2+(𝑁−1)𝑒2………………………..equation 1
e represents standard error
𝑛 =
360(0.3)2
0.32+(360−1)0.052 …………………......Equation 2
𝑛 = 85 respondents
Table 2 Sample Size
Strata Accessible
Population
Sampl
e Size
CECM 10 2
County finance
Department staff
10 2
Chief officers 15 4
Department Directors 30 7
ICT Department 10 2
County Revenue staff 15 4
Supply Chain
Management staff
20 5
Stakeholders/Represe
ntatives
250 59
Total 360 85
Research Instruments

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According to Creswell and Poth (2017), data refers
to known facts or things used as a basic for inference
or reckoning. Data can be described as qualitative or
quantitative. Qualitative data is concerned with
qualities and non-numerical characteristics, whilst
quantitative data is all data that is collected in
numerical form. (Birmingham, & Wilkinson, 2003)
indicated that there will always be a combination of
quantitative and qualitative data in a research study
no matter what paradigm is being followed. In terms
of data sources, there are two main sources of data:
primary data and secondary data. This study used
primary data. Data was collected using
questionnaires. Structured questionnaire was used to
collect the required information from employees in
Uasin Gishu County Government. This method was
selected because it enabled the study to obtain a lot
of information in a small period.
Data Collection Procedure
Before data collection, the study sought a letter to
conduct the study from the Jomo Kenyatta
University of Science and Technology. The
researcher visited the study area for familiarity and
make appointments with the administration on a
specific date to conduct the study. A day was
scheduled to administer the questionnaires to the
respondents. The researcher personally issued
questionnaires to the respondents. The issuing of
questionnaires was done through a drop and pick
method. This way, the study was able to save time
during data collection.
Pre-testing of the Research Instruments
A pilot test of the questionnaire was conducted
among 36 staff working at supply chain department
of Elgeyo Marakwet County government
headquarters to ensure validity of the questionnaire.
The help of pilot study is to explore areas about the
study. A small-scale study is undertaken to decide if
it is worth carrying out a detailed investigation
(Faux, 2010).
Validity of Research Instruments
Validity is the ability of an instrument to measure a
concept under study and to be able to measure it
accurately so that any observed differences are true
and not the result of random or constant errors.
Content validity determines whether an instrument
accurately measures that which it is supposed to
measure (Bouma, & Carland, 2016). To achieve the
validity of the research instrument, researcher
sought assistance from the supervisor and research
experts to discuss the questions of the study. The
researcher corrected the errors according to the
advice given by the supervisor and preceded with
data collection.
Reliability of Research Instruments
Reliability refers to the extent to which an
instrument yields similar results each time it is
administered by independent persons under
comparable conditions. The study took much care to
ensure that the research procedure is the same at
each of the respondent center. The study determined
the reliability of the research instruments by
conducting a Cronbach Alpha Co-efficiency test on
Statistical Package for Social Sciences (SPSS)
software. In relation to the scale provided, the study
relied heavily on Cronbach 0.7 point of reliability to
ascertain the reliability of the research instruments.
Data Processing and Analysis
Quantitative data was analyzed using descriptive
data analysis. Quantitative data analysis (QDA) is
the process of turning written data collected using
questionnaires into findings. The study had an
advantage of quantitative analysis using descriptive
tables. This also enabled the researcher to
statistically establish the correlation between the
independent and dependent variables. Inferential
statistics was used by the study. The study
employed the use of multiple regressions as a
method of data analysis. Statistical Package for
Social Sciences (SPSS) was used to aid in data
analysis. The study used the model below;
Y=βo+ β1X1+ε ……………………Equation 3
Y represents Contract Management Unit
performance
β represents Constant, β1, represent regression
coefficients of independent variable, x1 represents
buyer supplier development
ε represents error term.
Research Findings and Discussions
Response Rate
The study targeted 85 respondents. Questionnaires
that were successfully filled and returned by the
respondents were 77 which represent a response rate
of 90.59%. The remaining 9.41% is due to some
staff held up by official duties. (Creswell and Poth
2013) attributes a response rate of over 70% as
excellent for analyzing collected data.
Table 3 Response Rate Results
Response Number
Successfully filled and
returned
77
Not successfully filled and
not returned
8
Total questionnaires
issued
85

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Reliability Test Results
Internal consistency of the research instrument was
conducted by the study. Table 4 shows the analysis
results.
Table 4 Reliability Results of Research
Questionnaire
Variable Cronbach's
Alpha
Coefficient
Test
Items
Buyer Supplier
Development
0.773 3
Contract
Management
Unit
Performance
0.791 4
Average 0.776
Study results of buyer supplier development had a
Cronbach alpha of 0.773 while Contract
Management Unit Performance had a Cronbach
alpha of 0.791. This implies that the independent
variable was reliable because they had Cronbach
alpha of more than 0.7 with an average of 0.776.
Background Information of Respondents
Respondents were asked to provide confidential
demographic information regarding gender, level of
education, work experience and age bracket.
Distribution of Respondents by their Gender
Respondents were asked to tick appropriately on
their gender. Table 5 shows the distribution of
gender
Table 5 Distribution of Respondents by their
Gender
Gender Frequency Percentage
Male 47 61.0
Female 30 39.0
Total 77 100.0
From the study gender results, 47(61.0%) were male
respondents while 30(39.0%) were female
respondents. This implies that majority of staff
working in contract management unit in Uasin
Gishu County Government are male, procurement
function should consider gender balance when
recruiting staff.
Distribution of Respondents by the Level of
Education
Level of education that the respondents were given
to choose from include masters, degree, diploma and
certificate as shown in Table 6.
Level of Education
Level of Education
Frequency
Percentage
Certificate
Diploma
Degree
Masters
Total
10
17
45
5
77
13.0
22.1
58.4
6.5
100.0
Majority of respondents in the contract management
unit in Uasin Gishu County Government were
degree holders 45(58.4%) followed by diploma
17(22.1%), 10(13.0%) were certificate holders while
5(6.5%) of the respondents were master’s holders.
What this means is that contract management unit in
Uasin Gishu County Government employs skilled
degree holders to improve their performance.
Distribution of Respondents by Age Bracket
Respondents were asked to give their age brackets
ranging from those below 30 years and those over 50
years. Table 7 shows the distribution of age brackets.
Age Bracket
Age Bracket Frequency
Percentage
Under 30years 11 14.3
31-40 years 37 48.1
41-50 years 12 15.6
Over 50 years 17 22.1
Total 77 100.0
Majority of the respondents 37(48.1%) were aged
between 31-40 years had the highest number of
respondents, those aged over 50years were
17(22.1%), 12 (15.6%) of the respondents fell in the
age bracket of 41-50 followed while 11(14.3%) were
below 30 years. This implies majority of staff in
contract management unit in Uasin Gishu County
Government are in the productive age of between
31-40 years. This also implies contract management
unit in Uasin Gishu County Government should
employ more youth to improve their performance.
Distribution of the Respondents by their Work
Experience
Study respondents were asked to provide the
duration they have worked in the procurement
function unit. The results were provided as shown in
Table 8
Table 8 Distribution of the Respondents by their
Work Experience
Duration Frequency Percentage
0-5 years 26 33.8
Over 5 years 51 66.2
Total 77 100.0
From the study findings majority of the respondents
have stayed in the procurement function for a span
of 5-10 years 51(66.2%) while 26(33.8%) have
worked for less than 5 years. Implication of this

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finding is that majority of staff in contract
management unit have limited experience of 5-10
years. Contract management unit in Uasin Gishu
County Government employs experienced staff to
improve their performance.
Descriptive Statistics
Descriptive statistics was collected on the
independent variable of buyer-supplier development
and the dependent variable of contract management
unit performance.
Buyer Supplier Development Findings
The study sought to determine the effect of buyer
supplier development on the performance of
contract management unit. The results are as
presented in Table 9.
Table 9 Descriptive Statistics for Buyer Supplier Development Results
Statements SA A N D SD M Min Max Std. D
1. Suppliers’ involvement
in the tendering process
has improved delivery of
quality products.
F 46 14 2 2 13 4.01 2.00 5.00 1.50
% 59.7 18.2 2.6 2.6 16.9
2. Suppliers are offered
training workshops to
improve their service
delivery.
F 47 13 5 8 4 4.18 1.00 5.00 1.24
% 61 16.9 6.5 10.
4
5.2
3. Supplier incentives have
ensured timely delivery
of products by suppliers.
F 31 34 3 6 3 4.09 2.00 5.00 1.05
% 40.3 44.2 3.9 7.8 3.9
Valid N 77
From the findings, 60(77.9%) of the respondents
agreed that suppliers‟ involvement in the
tendering process has improved delivery of quality
products, while 15(19.5%) of the
respondents disagreed on the statement and only
2(2.6%) of the respondents were neutral
hence (M=4.10, Std.D=1.50). Furthermore,
60(77.9%) of the respondents agreed that
suppliers are offered training workshops to improve
their service delivery while 5(6.5%) of
the respondents were neutral on the statement and
12(15.6%) of the respondents disagreed
that Suppliers are offered training workshops to
improve their service delivery‟ (M=4.18,
Std. D=1.24). Finally, 65(84.5%) of the respondents
agreed that supplier incentives has
ensured timely delivery of products by suppliers,
while 3(3.9%) of the respondents were
undecided on the statement and 9(11.7%) of the
respondents disagreed that supplier
incentives has ensured timely delivery of products
by suppliers hence (M=4.09, Std. D=
1.05).
These findings concur with the findings of Lukhoba
and Muturi (2015) who in their
study noted that supplier development programs
have several advantages that include
improved delivery performance, reduced lead-time,
getting materials of the right quality
with minimum defects and lowering the costs. These
findings imply that performance of
contract management unit is dependent on buyer
supplier development practices. These findings also
imply that key performance measures of buyer
supplier development are supplier involvement,
supplier training and supplier incentives. Min values
are 2 and 1 while max value is constant at 5.
Performance of Contract Management Unit
Findings
The researcher sought to determine the effect of
effect of buyer supplier development on the
performance of contact management unit in Uasin
Gishu County Government, Kenya.
Table 10 Descriptive Statistics for Performance of Contact Management Unit
Statements SA A N D SD M Min Max Std. D
1. Delivery of goods is
facilitated through
information sharing.
F 17 42 5 11 2 3.79 3.00 5.00 1.03
% 22.1 54.5 6.5 14.3 2.6
F 19 49 3 3 3 4.01 3.00 5.00 0.89

58, October, 2019
55 | P a g e
2. Supply chain department
accesses quality of
goods.
% 24.7 63.6 3.9 3.9 3.9
3. Timely delivery has
been achieved through
buyer-supplier
agreement.
F 32 39 1 3 2 4.25 2.00 5.00 0.87
% 41.6 50.6 1.3 3.9 2.6
4. Cost reduction through
information sharing has
improved performance.
F 54 5 5 5 8 4.19 2.00 5.00 1.39
% 73.1 6.5 6.5 6.5 10.4
Valid N 77
The findings presented in Table 10 revealed that
59(76.6%) of the respondents agreed that the
delivery of goods is facilitated through information
sharing (M=3.79, Std. D=1.03). Also, concerning
the supply chain department accessing quality of
goods, 68(88.3%) of the respondents agreed that
supply chain department makes sure the suppliers
supply quality of goods (M= 4.01, Std. D=0.89).
Furthermore, on whether timely delivery has been
achieved through buyer-supplier agreement,
71(92.2%) of the respondents agreed that timely
delivery has been achieved through buyer-supplier
agreement (M=4.25, S0.87). Finally, 59(76.6%) of
the respondents agreed that there has been a cost
reduction because of information sharing with
suppliers (M=4.19, St. D=1.39). These findings
concur with the findings of Wachiuri, Waiganjo and
Oballah (2015 who established that supplier
development plays an important role in improving
the supplier performance and the organization
performance. The findings of the study imply that
supplier development is a crucial predictor of
contract management. Min values are 3 and 2 while
max values are constant at 5.
Inferential Analysis
The study conducted inferential analysis to
determine the relationship that exists between the
buyer supplier development and the performance of
contract management unit of Uasin Gishu County
Government.
Multiple Regression Analysis
The study sought to conduct an analysis on multiple
regression model. Table 11 presents the multiple
regression analysis results.
Table 11 Multiple Regression Analysis Results
Model R R Square Adjusted R Square
Std. Error of the
Estimate Durbin-Watson
1 .648a
.421 .388 .55363 1.521
Table 11 shows the coefficient of determination (R
Square) for the combined set of buyer supplier
development was 0.421 which indicates that the
variations in performances of contract management
accounted for up to 42.1% of variations in
performance of contract management. R (0.648)
shows there is close relationship between buyer
supplier development and contract management unit
performance. The remaining 57.9 % was variations
due to other factors not covered by the study.
Regression Coefficients
The β value shows the relationship between the
predictor variables and the performance of contract
management unit. The positive β values indicate the
positive relationship between the predictors and the
outcome. An examination of the regression
coefficients is displayed in Table 12.
Table 12 Regression Coefficient Results
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig.B Std. Error Beta
1 (Constant) .584 .512 1.140 .258
Buyer supplier
development
.162 .077 .198 2.085 .041

58, October, 2019
56 | P a g e
The analysis in Table 12 indicates that, buyer
supplier development also has a positive and
statistically significant effect on the performance of
contract management unit (β=0.162; p=0.041).
These findings concur with the findings of Bart and
Arnold (2016) that buyer supplier development
leads to better improve of management of contracts
between suppliers and buyers.
T-test was used to identify whether the predictor was
making a significant contribution to the model. The
overall model is as shown in Equation 4.
Y= 0.584+.0.162X4 …………… Equation 4
Where Y represents the Performance of Contract
Management Unit
Hypotheses Results
Independent variable of buyer supplier development
practices was tested on its significance to
performance of contract management unit in Uasin
Gishu County Government.
H01: Buyer Supplier Development has no
Significant Effect on the Performance of
Contract Management Unit in Uasin
Gishu County Government, Kenya
Performance of contract management unit was
affected by buyer supplier development. Null
hypothesis was tested and the results indicated a
statistical significance of (β=0.162; p<0.05). Null
hypothesis was rejected since 16.2% of performance
of contract management unit is affected by buyer
supplier development was therefore rejected at
significance level of 5%. These indicated that
suppler buyer development practices affect the
performance of contract management unit.
The p value of 0.000 is less than 0.05 meaning that
there is significant effect between buyer supplier
development and performance of contract
management unit. Study findings are in line with
findings Kadir, Tam & Hassan (2011) who found
out that supplier development programs support the
development of a supplier's capabilities usually with
the assistance of a buyer. Supplier development also
depends on supplier’s interest and how they explore
them self to increase their capabilities. These
findings imply that buyer supplier development is a
key contributor to the performance of contract
management
Summary of the Findings
Buyer Supplier Development and Contract
Management Unit Performance.
The fourth objective sought to determine the effect
of buyer supplier development on the contract
management unit performance. The study found out
that buyer supplier development positively and
significantly affects contract management unit
performance. Buyer supplier development was
found to be reliable for conducting this study from
cronbach alpha test results. From the correlation
analysis the study found that there is a positive
relationship between that buyer supplier
development and performance of contract
Government.
Regression analysis results also indicated that buyer
supplier development positively and significantly
affects performance of contract management unit in
Uasin Gishu County Government. The results
indicated that a unit change in buyer supplier
development would lead to a reciprocal change in
performance of contract management unit in Uasin
Gishu County Government. Study concludes that the
higher the level of buyer supplier development
between the buyer and supplier the higher the
performance of contract management unit. Findings
therefore meant that the null hypothesis that there is
no significant relationship between buyer supplier
development and contract management unit
performance was rejected.
Contract Management Unit Performance.
With regard to performance, the study found out that
contract management unit enjoyed substantial
performance in terms of cost control, quality, lead
time and efficiency. Other benefits highlighted by
the respondents include reduction of waste,
reduction in holding excess packaged tea stocks and
good customer satisfaction. Findings therefore
established that performances of Uasin Gishu
County Government contract management unit
relied heavily on supplier relationship practices of
buyer supplier development
Conclusions of the Study
Buyer supplier development practices of contract
management unit were concluded to having an
impact on their performances. The study found that
Uasin Gishu County Government undertakes
implementation of policies that are ethical,
standardized and leveraged towards buyer supplier
development. This is to ensure they maintain good
performance standards. This study submits that
Uasin Gishu County Government should formulate
and implement buyer supplier development policies
in line with county policies to help achieve
maximum performance. However, the supplier
relationship practices should be bundled through
mutually consistent policies to enhance their
synergy in achieving high performance of contract
management unit. In fact, strategic orientation of

58, October, 2019
57 | P a g e
these buyer supplier development practices remains
the cornerstone for enhancing performance of the
contract management unit.
Recommendations of the Study
From the study result, findings and conclusions, the
study recommends that head of contract
management unit of Uasin Gishu County
Government should strive to implement buyer
supplier development practices in their contract
management unit to enhance contract management
performance. In fact, the findings have contributed
to performance of contract management unit in
terms of providing valuable input and awareness of
buyer supplier development practices to consider
with regard to enhancing performance of Uasin
Gishu County Government. Management should
formulate policies based on their buyer supplier
development practices in order to achieve maximal
performance.
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