Authors: Alfred Mwatika Mghanga, Mr.Eric Mathuva, Mr. Patrick Egondi
Abstract: This study investigates the impact of procurement planning, supplier negotiation, and their interaction on cost performance in Water Service Providers (WSPs) in Kenya. It explores how procurement planning practices influence financial outcomes, with a focus on supplier negotiation as a potential moderator of this relationship. Using data from 221 respondents across 81 WSPs, the study conducts multiple linear regression analysis to test the direct effects of procurement planning and supplier negotiation on cost performance and the moderating effect of supplier negotiation. The findings indicate that supplier negotiation significantly influences cost performance, while procurement planning does not have a direct impact on cost performance. Furthermore, the study finds that supplier negotiation does not moderate the relationship between procurement planning and cost performance. These results highlight the importance of enhancing supplier negotiation practices to improve cost efficiency and financial performance in WSPs. The study concludes with recommendations for managers to invest in procurement planning improvements, supplier negotiation training, and e-procurement adoption to optimize resource utilization and enhance service delivery.
DOI: http://doi.org/10.5281/zenodo.18359021
