Assessment of Supplier Partnership on Performance of the Procurement Department of Geothermal Development Company Limited, Nakuru-Kenya

Abstract

Competition and the growth of alliances are forcing firms to develop better supplier partnerships to maintain a competitive edge. Firms have realized that collaborative business relationship improve firm's ability to respond to the new business environment by allowing them to focus on their core businesses and reduce costs in business processes. Geothermal drilling is a relatively new concept spearheaded by the geothermal development company limited. This being a capital intensive project it is heavily dependent on imported technologies. Reliance on imported technologies has in the past contributed to the delays in project completion owing to the complex logistics of buying internationally. The company has embarked on supplier partnership programs to bridge the supply gaps. The target population was 300 staffs and a sample of 75 respondents was drawn. The study relied on primary data obtained from staff using a questionnaire. Data collected was analyzed using statistical package for social sciences (SPSS) Version21 and the use of descriptive statistics was also employed during analysis. Multiple regression analysis was then used to determine the relationship between predictor variables supplier partnerships and the dependent variable: performance of the procurement department. The study findings indicated supplier partnerships have significant contribution to purchasing performance.