Sourcing Strategies and Organizational Performance of Muranga Co-Operative Creameries Kenya

Abstract

Purpose: The general objective of this study was to establish the influence of sourcing strategies on organizational performance of Murang’a Co-operative Creameries in Kenya. Specifically, the study sought to establish the influence of single sourcing strategy, multiple sourcing strategy, delegated sourcing strategy and parallel sourcing strategy on organizational performance of Murang’a Co-operative Creameries in Kenya. The theories anchoring the study comprised of Agency theory, Network Theory and Systems Theory.
 Methodology: This study utilized a descriptive research design. The target population comprised of Murang’a Co-operative Creameries where the units of observation comprised of employees from human resource department, quality assurance department, production department, maintenance department, sales department and accounts, finance department in Muranga Co-operative Creameries. A total of 76 employees were targeted in the study. Primary data was utilized in the study and collected using semi structured questionnaire that were administered by drop and pick methods. The research used a mixed approach to data analysis. Descriptive analysis involved use of measure of central tendency and standard deviation as a measure of dispersion. Inferential statistics comprised of both correlation and regression analysis. Statistical Package for Social Sciences (SPSS) version 24.0 was used to generate the statistics. The results of the study were presented in form of tables and figures.
 Findings: The study established that single sourcing strategy, multiple sourcing strategy, delegated sourcing strategy and parallel sourcing strategy bears a positive and significant influence on organizational performance of Murang’a Co-operative Creameries in Kenya. This is shown by beta values of 0.216, 0.549, 0.406 and 0.315 and significant values of 0.011, 0.000, 0.000 and 0.003 respectively. The results implies that increasing the independent variables with one unit results to increase in the levels of organizational performance of Murang’a Co-operative Creameries with the respective beta units.
 Unique contribution to theory, practice and policy: The study provides recommendation to Murang’a Co-operative Creameries to enhance the levels of sourcing strategies comprising of single sourcing strategy, multiple sourcing strategy, delegated sourcing strategy and parallel sourcing strategy since the practices positively and significantly influences organizational performance.