Title:
Effect of Outsourcing Plans on Procurement Performance in the Tier Two and Three Commercial Banks in Kenya.

Authors:
Peter Pasaka O. Onyango and Dr. Miriam Thogori Nyambura, Kenya

Abstract:

The study examined the influence of outsourcing plans on procurement performance in the tier two and three commercial banks in Kenya. This study was anchored on resource-based theory. This study adopted a descriptive research design to a target population of all 33 tier two and three licensed commercial banks in Kenya. Out of a population, a representative sample of 23 was obtained using a statistical formula. The target respondents in each bank being the heads of operations, human resources, procurement and finance functions in each sampled firm. Therefore, the target sample consisted of 92 respondents, including the head of operations, human resource head, head of procurement, and head of finance, in each sampled firm. The commercial banks were selected randomly. Data was collected through a closed-ended questionnaire. Data analysis was done using both descriptive and inferential methods. Multiple Regression analysis was used to analyse data, and the analysis was facilitated using the Statistical Package for Social Sciences. The regression model indicate that outsourcing plans explains approximately 39.1% of the variance in procurement performance. The coefficients obtained exhibits a strong positive and statistically significant effect on procurement performance (β = .960, p = .000). The study will form a basis for policy formulation on procurement and supply chain management matters in commercial banks, specifically around outsourcing and procurement performance, potentially contributing to the sector's long-term viability and success, besides providing a basis for further research in the field.

DOI: https://doi.org/10.51505/IJEBMR.2026.1026