Abstract:
Purpose The purpose of this paper is to investigate effectiveness of strategic
sourcing for improving firm’s performance. Design/Methodology/Approach A cross-sectional
approach was adopted with primary data collected. The data yielded a response rate of 375
from electricity firms in Kenya. The data collected were put through rigorous statistical
analysis to test content validity as well as reliability. Further, simple linear regression model
was used to test relationships between strategic sourcing and firm’s performance. Findings
The finding suggests that a successful implementation of strategic sourcing improves firm’s
performance through adoption of multiple sourcing strategies as well as maintaining
manageable supply base. Further, the paper reveals that wrong choice of suppliers can
negatively compromise the quality of products and services of the firm. Research
limitations/implications Strategic sourcing is complex and very sensitive issue. While the study
show the effect is generally accepted strategic sourcing strategies for improving firm’s
performance, not all strategic sourcing strategies are covered in the study. Also, the study
can be carried on in other sector in order refine the study findings. Originality/Value The study
provides an empirical analysis on the strategic sourcing strategies and their effect on firm’s
performance. Again the study seeks to provide a research agenda which meets the needs of
today’s business sourcing requirements.
Keywords: Strategic sourcing, Performance of electricity firms in Kenya, Simple regression,
Reliability
