Strategic Procurement Practices and Operational Performance of Firms in the Hospitality Industry in Kenya: A Case Study of The Boma Hotel Nairobi

Author

Hayness Kerubo, Paul Machoka


Abstract

This study examined the relationship between strategic procurement practices and the operational performance of The Boma Hotel Nairobi. Four practices were assessed: strategic procurement cost control, strategic supplier communication, strategic procurement planning and electronic procurement. The study was anchored on the Resource-Based View, complemented by Transaction Cost Theory and Systems Theory. A descriptive cross-sectional design was adopted, and a census was taken of all 88 management and staff members across six departments. Structured questionnaires yielded 80 valid responses (response rate 90.91%), and the instrument was reliable (overall Cronbach's alpha = 0.828). Data were analyzed in SPSS version 31 using descriptive statistics, Pearson correlation and multiple regression. Cost control was strongly practiced (item means 4.23 to 4.35), while supplier communication (2.95 to 3.00), procurement planning (1.53 to 2.90) and electronic procurement (1.86 to 4.15) showed moderate to weak and uneven implementation. All four practices correlated positively with operational performance (r = .673 to .718), electronic procurement most strongly. The regression model was significant, F(4, 75) = 53.913, p < .001, and explained 74.2% of the variation in operational performance (adjusted R² = .728). Each practice was a significant positive predictor: cost control (β = .392), supplier communication (β = .311), procurement planning (β = .267) and electronic procurement (β = .249). The study concludes that strategic procurement practices are positively associated with operational performance and recommends that the hotel maintain its cost control while strengthening procurement planning, supplier communication and the integration of electronic procurement. Further research should cover other hotels, additional factors and changes over time.


Keywords

strategic procurement; cost control; supplier communication; procurement planning; electronic procurement; operational performance; hospitality industry; The Boma Hotel Nairobi



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References


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