Abstract
Lean procurement practices play an important role in enhancing organizational efficiency through waste reduction, cost optimization and improved service delivery. However, the performance of commercial state corporations in Kenya remains uneven, highlighting the need for effective procurement practices. This study examined the influence of pull systems and e-procurement on the performance of commercial state corporations in Nairobi City County, Kenya. The study was guided by Just-in-Time Theory and Innovation Diffusion Theory, which explain the application of demand-driven procurement and the adoption of electronic procurement technologies, respectively. A descriptive research design was adopted, targeting 240 procurement and finance officers from commercial state corporations. A sample of 150 officers was determined using Yamane's formula, with stratified random sampling employed to select respondents. Data were collected using structured questionnaires and analysed using descriptive and inferential statistics, including Pearson correlation and multiple regression analysis, with the aid of SPSS version 28. A total of 118 valid responses were obtained, representing an 87.4% response rate. The findings revealed a strong positive and statistically significant relationship between pull systems and organizational performance (r = 0.737, p < 0.001). Similarly, e-procurement had a positive and statistically significant relationship with organizational performance (r = 0.540, p < 0.001). Regression results further established that pull systems (β = 0.682, p < 0.001) and e-procurement (β = 0.582, p < 0.001) were significant positive predictors of organizational performance. Pull systems recorded the strongest standardized contribution among the procurement practices examined. The study concludes that demand-driven procurement, effective inventory management and adoption of electronic procurement systems are important for enhancing the performance of commercial state corporations. It recommends strengthening demand forecasting, aligning procurement and replenishment with actual requirements, and improving the implementation of electronic sourcing, tendering, bidding and payment systems.
Keywords: Lean procurement, pull systems, e-procurement, organizational performance, commercial state corporations, Kenya.