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Sustainable Procurement in Kenyan Roads

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44 views22 pages

Sustainable Procurement in Kenyan Roads

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mwasumbi97
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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SUSTAINABLE PROCUREMENT PRACTICES AND COST PERFORMANCE OF ROAD CONSTRUCTION PROJECTS IN

KENYA

Alex Mathaiya Machira, Dr. (Eng.) Patrick Ajwang’, PhD & Dr. (Eng.) Charles Kabubo, PhD

- 1235 - The Strategic Journal of Business & Change Management. ISSN 2312-9492 (Online) 2414-8970 (Print). ww.strategicjournals.com
Vol. 11, Iss.2, pp 1236 – 1256, June 6, 2024. www.strategicjournals.com, © Strategic Journals

SUSTAINABLE PROCUREMENT PRACTICES AND COST PERFORMANCE OF ROAD CONSTRUCTION PROJECTS IN


KENYA

*1
Alex Mathaiya Machira, 2 Dr. (Eng.) Patrick Ajwang’, PhD & 3 Dr. (Eng.) Charles Kabubo, PhD
*1
Master’s candidate, Jomo Kenyatta University of Agriculture & Technology (JKUAT), Kenya
2, 3
Lecturer, Jomo Kenyatta University of Agriculture & Technology (JKUAT), Kenya

Accepted: May 18, 2024

DOI: http://dx.doi.org/10.61426/sjbcm.v11i2.2981
ABSTRACT
In light of the rising global importance of sustainable procurement implementation for contributing to sustainable
development goals, the purpose of this study was to examine the influence of sustainable procurement practices
on cost performance of road construction projects in Kenya. The study employed the positivist research philosophy
and the quantitative non-experimental research methodology. The study utilized the correlational research design
to test noncausal relationship between the study variables without the researcher controlling any of them. The
target population consisted of 47 regional directors, 47 supply chain officers and 94 prequalified contractors in
charge of road construction projects under the Kenya Rural Roads Authority in Kenya. The proportionate stratified
random sampling technique was used to select a sample size of 32 regional directors, 32 supply chain officers and
64 prequalified contractors in charge of road construction projects in Kenya. A self-administered structured survey
questionnaire was used to collect primary data. A pilot study was conducted to test the validity and reliability of
the constructed survey questionnaire. With the help of the 3 research assistants, the researcher hand delivered the
survey questionnaire to the random sample using the drop and pick method. A cross-sectional survey-based
approach was used. The collected data was coded, edited, and entered into the Statistical Package for Social
Sciences (SPSS) version 26 to create a data sheet that was used for statistical analysis. Descriptive statistics and
inferential statistics were used for data analysis. The Pearson’s product moment correlation analysis was
performed to confirm or deny the relationship between the study variables. The correlation results indicated that
green purchasing and sustainable supplier management practices had positive and significant relationship with
cost performance of road construction projects in Kenya. The multiple regression results indicated that green
purchasing and sustainable supplier management practices had positive and significant influence on cost
performance of road construction projects in Kenya. The study recommends that sustainable procurement should
be integrated as part of construction project procurement process to foster performance of road construction
projects. Future researchers should examine the moderating influence of project complexity on the relationship
between sustainable procurement practices and performance of construction projects in other regions or sectors.

Key words: Cost performance, Green Purchasing, Sustainable supplier management, Sustainable procurement
practices, Kenya

CITATION: Machira, A. M., Ajwang’, P., & Kabubo, C. (2024). Sustainable procurement practices and cost
performance of rural road construction projects in Kenya.. The Strategic Journal of Business & Change
Management, 11 (2), 1236 – 1256. http://dx.doi.org/10.61426/sjbcm.v11i2.2981

- 1236 - The Strategic Journal of Business & Change Management. ISSN 2312-9492 (Online) 2414-8970 (Print). ww.strategicjournals.com
INTRODUCTION Sustainable procurement involves procurement
The construction industry is the pillar of success of decisions to meet an enterprise's requirement for
modern countries. The construction industry plays goods or services, while minimizing the influence on
an essential role in the development of any country environment (Stefanovic, 2022). However, little has
(Nguyen & Macchion, 2022; Kabutiei, Nyang’au, & been written about how the construction industry
Muchelule, 2022). However, the failure of many could turn the challenges of sustainable
construction projects in meeting deadlines, cost and procurement into opportunities that promotes
quality targets is continuously on the rise (ALSaadi procurement practices in accordance with national
& Norhayatizakuan, 2021). Despite the policies and priorities (Opoku et al., 2022).
government’s continued investment in road Sustainable procurement management as a
construction, the road construction delays have had potential solution takes the environmental
a negative influence on Kenya’s social and economic consequences of procurement decisions into
gains that would have accrued if the projects had account and integrates sustainable practices into
been completed on time (Kipchirchir, 2022). The project procurement to bring positive
successful management of a construction project is environmental outcomes (Ershadi, Jefferies, Davis,
the most desirable for all organizations and & Mojtahedi, 2021). Developing sustainable
stakeholders (Shafiuddin, Durrani, Al-Bulushi, Al- procurement is critical to achieving better project
Farsi, & Al-Hosni, 2022). However, the construction performance (Al Fath, Herwindiaty, Wibowo, & Sari,
delays have become an integral part of a project’s 2024). However, effective implementation and
lifecycle (Shayan, Pyung Kim, & Tam, 2022). The committed practice of sustainable procurement
construction industry continues to deliver its remain a significant challenge for many
products over budget, beyond original estimated organizations across the globe (Etse et al., 2023).
construction period and at times with poor quality
Statement of the Problem
(Dindi, 2022).
Despite its scale and achievements, the
The project implementation team always aims for construction industry has struggled with limited
successful outcome of construction projects (Oke, productivity gains and inefficiencies, including
Arowoiya, & Akomolafe, 2022). However, the frequent cost and time overruns and a considerable
dynamic nature of the construction projects and the environmental impact due to high resource and
involvement of large number of stakeholders energy consumption (Rodriguez Trejo, Najafi, &
exposes the projects to a variety of known and Rahimian, 2024; Sheikhkhoshkar, Bril El-Haouzi,
unknown risks (Sami Ur Rehman, Thaheem, Nasir, & Aubry, & Hamzeh, 2023). The construction industry
Khan, 2022). The construction industry entails high still continues to experience significant cost
levels of risk, but often this risk is not dealt with overruns, schedule delays and poor-quality output,
adequately, resulting in poor project performance, resulting in poor time, cost and quality performance
which is reflected in frequent cost and time (Khisa & Mutiso, 2022). Within the context of
overruns, as well as poor quality of work (Khisa & construction projects, the poor performance of
Mutiso, 2022). The construction industry has project costs and up to 86% of international
complexity in its nature, because it contains a large construction projects face cost overruns, and 30%
number of parties such as clients, contractors, to 40% encounter inferior cost performance and
consultants, stakeholders, shareholders, and overruns globally (Elserougy, Khodeir, & Fathy,
regulators (Gitonga, Muchelule, & Nyang’au, 2022). 2024). Although achieving project completion
within the estimated cost is fundamental criteria for
Globally, sustainable public procurement is among
success of any project, most of projects face cost
the key avenues for realizing the three pillars of
overrun problem with an average overrun in the
sustainable development (Kumar, 2022b).

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range of 5% to 10% of the total project cost (Najafi, within the developing countries (Kumar, 2022a;
Sheikhkhoshkar, & Rahimian, 2024). In Kenya, the Msakwa, 2023). The existing empirical literature has
majority of the projects are not completed within provided mixed findings or inconclusive results.
allocated cost (Mugweru & Muchelule, 2022). Therefore, the general business problem lies in
understanding the influence of sustainable
Kenya’s construction industry is anticipated to
procurement practices on cost performance of road
expand at an average annual rate of 5.9% between
construction projects in Kenya.
2024 and 2027 (Werna & Ofori, 2023). However,
the failure of many construction projects in meeting Objectives of the Study
cost targets is continuously on the rise and there This quantitative non-experimental correlational
are signs of accentuating year after year suffering study was guided by a general and two specific
significant financial losses of construction works in objectives. The general objective of the study was
Kenya. About 55 percent of the road construction to examine the influence of sustainable
projects in the country face a variety of difficulties, procurement practices on the cost performance of
that prevent them from being completed on time, road construction projects in Kenya. The specific
incurring cost overruns, or failing to meet the objectives were;
required quality requirements (Kabiti & Kikwatha,  To determine the influence of green
2022). In spite of the government’s continued purchasing on cost performance of road
investment in road construction, the road construction projects in Kenya.
construction projects have been experiencing poor  To assess the influence of sustainable
project performance in form of high cost (Gitonga supplier management on cost performance
et al., 2022; Kabutiei et al., 2022). of road construction projects in Kenya.
Despite their crucial contribution to the economic In this study, two null hypotheses were tested.
growth and prosperity of nations around the world,  H01: Green purchasing has no significant
the rural road projects in developing nations still influence on cost performance of road
experience challenges with cost overruns ranging construction projects in Kenya.
between 5.8% to 14.97% (Kitungo & Musembi,  H02: Sustainable supplier management
2024). The issue of changes in project cost is a
has no significant influence on cost
major challenge in both developed and developing
performance of road construction
countries (Mugweru & Muchelule, 2022). Effective
projects in Kenya.
cost management practices are essential for
successful integrated project delivery and elevated LITERATURE REVIEW
cost management practices (Rachmawati et al.,
Theoretical Framework
2024). However, poor cost performance in projects
has become routine, and research has focused on Theoretical framework is the lens through which
understanding the factors contributing to this issue the researcher uses to connect the literature with
(Zhou et al., 2023). Sustainable procurement the study results and methodology (Bingham,
practices and project performance has been widely Mitchell, & Carter, 2024). The theoretical
discussed in the literature from various perspectives framework was anchored on the resource-based
(Eretan, 2024; Herwindiaty et al., 2024; Mudashir, view theory, dynamic capability theory of
Zadawa, & Mohammed, 2024). However, there has constraints and the institutional theory.
been a plethora of research on the performance of
Resource Based Theory
cost in construction projects (Salih & El-adaway,
The resource-based (RBT) theory (Barney, 1991;
2024). The majority of these studies have focused
Penrose, 1959; Wernerfelt, 1995) provides an
on developed countries with a paucity of studies
explanation as to why some organizations are

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performing better and how an organization can rapidly changing business environments (Muneeb,
perform better (Wu, Yan, & Umair, 2023). The RBT Ahmad, Abu Bakar, & Tehseen, 2023). The DC
theory posits that firms’ competitiveness even in theory provides the relevant theoretical framework
the same industry varies based on a firm’s that explains the influence of sustainable
resources and capabilities (Zulkiffli, Zaidi, Padlee, & procurement practices on cost performance of rural
Sukri, 2022). The RBT theory provides the construction projects in Kenya. The DC theory
underpinning theoretical framework that explains (Teece & Pisano, 2003; Teece, Pisano, & Shuen,
the influence of sustainable procurement practices 1997) suggests that firms should develop the ability
on cost performance of road construction projects to build, integrate, and reconfigure resources and
in Kenya. Through the lens of the RBT theory, competencies to achieve competitive advantages
Nangpiire, Gyebi, and Nasse (2024) examined the (Teece, 2023).
predictive relationship between sustainable
The DC theory is considered an extension for RBV
procurement practices and the performance of
theory to deal with the changes occurred in the
small and medium enterprises in Ghana. The RBT
environment due to digital technologies (Teece,
theory holds that firms can earn sustainable super
2023). Therefore, the DC theory is a relevant
normal returns if they have superior resources,
theoretical framework that can be used to explain
which are protected by some form of isolating
the influence of green purchasing, sustainable
mechanism preventing their diffusion through
supplier management, electronic procurement and
industry (Teece, 2023a).
ethical procurement practices on performance of
The RBT theory suggests that the VRIN resources road construction projects in Kenya. The DC theory
are difficult to monetize directly through addresses the particular shortcomings of the RBV
contracting arrangements that would allow other theory as a means for firms to evolve in changing
firms to utilize the resources in exchange for service environments and maintain a competitive edge
fees (Vieira, Jaramillo, Agnihotri, & Molina, 2023). (Hällerstrand, Reim, & Malmström, 2023). The DC
The RBT theory postulates that the VIRN framework theory is concerned with how firms can sustain and
is used to help companies identify certain resources enhance their competitive advantage, notably when
and capabilities that can provide them with a facing changing environments (Solem, Fredriksen, &
sustained competitive advantage (Alvarez, Sørebø, 2023).
Newman, Barney, & Plomaritis, 2023). Therefore,
Institutional Theory
the RBT theory is the underpinning theory for the
The institutional theory (Cooper, Ezzamel, &
research model to explain the influence of green
Willmott, 2008; Lawrence & Suddaby, 2006)
purchasing and ethical procurement practices on
emphasizes how organizational practices that
cost performance of road construction projects in
evolve within specific areas of social life, or
Kenya.
institutional fields, gradually come to resemble each
Dynamic CapabilitY Theory other as organizations seek to legitimize themselves
The dynamic capability (DC) theory (Eisenhardt & to their surrounding environments and how this
Martin, 2000; Teece, Pisano, & Shuen, 1990) views imbues such fields with a high degree of stability
dynamic capability as the firm’s ability to integrate, (Eitrem, Meidell, & Modell, 2024). The institutional
build and reconfigure internal and external theory provides the relevant theoretical framework
competencies to address the rapidly changing that explains the influence of sustainable
environments (Martins, 2023). The dynamic procurement practices on cost performance of
capabilities are the firm’s ability to integrate, build, construction projects in Kenya. In the context of
and reconfigure internal and external sustainable procurement practices, the institutional
resources/competences to address and shape theory suggests that when senior leaders actively

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promote and endorse sustainable practices, they on cost performance of road construction projects
signal the significance of sustainability to the in Kenya. Through the lens of the institutional
organization and external stakeholders, which in theory, Nangpiire et al. (2024) examined the
turn translates to superior performance (Ma et al., predictive relationship between sustainable
2021). The institutional theory (Butler, 2011) has procurement practices and the performance of
been applied ever since 1930 (Bansal & Clelland, small and medium enterprises in Ghana. Drawing
2017) in understanding the response of the firm to on institutional theory, Nawaz and Guribie (2024)
increasing pressures for management of the analyzed the influence the adoption of institutional
environment (Adom & Ackom, 2024). The isomorphism on the adoption of social procurement
institutional theory argues that an organization’s in the Chinese construction industry. Due to
institutional environment strongly influences the increased public awareness of organizational failure
adoption and development of formal structures in and environmental demands, institutional theory
the organization (Eitrem, Meidell, & Modell, 2024; recommends that companies can only gain
Forster, Lyons, Caldwell, Davies, & Sharifi, 2024). legitimacy through reduction of their environmental
influence and being socially responsible (Glynn &
The institutional theory identifies three types of
D’aunno, 2023).
institutional environment forces namely normative,
coercive, and, mimetic forces that can influence an Conceptual Framework
organization’s practices (Lin & Yeh, 2024). The The conceptual framework illustrates that project
institutional theory suggests that institutional cost performance is conceptualized as the
pressure has led firms to adopt sustainable dependent variable. However, the conceptual
procurement practices (Eitrem et al., 2024). The framework depicts that green purchasing and
institutional theory provides the relevant sustainable supplier management are
theoretical framework that explains the influence of conceptualized as the independent variables. Figure
green purchasing and ethical procurement practices 1 presents the conceptual framework.

Sustainable Procurement Practices

Green Purchasing
 Sourcing Eco-Friendly Products
 Eco-Friendly Packaging Project Cost Performance
 Cost Efficiency
Sustainable Supplier Management  Cost Effectiveness
 Supplier Selection
 Supplier Partnership

Independent Variables Dependent Variable


Figure 1: Conceptual Framework

Review of Literature on Variables


This section presents a review of the literature relevant to variables of the research.

Green Purchasing companies pay attention to the environmental


Green purchasing involves procuring goods and influence when they do activities to buy company
services in a manner that integrates fiscal raw materials, company auxiliaries, and
responsibility, social equity and environmental components needed to do production (Slastanova,
stewardship (Yee, Shaharudin, Ma, Zailani, & Palus, Sulek, Parobek, & Slastanova, 2021). Green
Kanapathy, 2021). It is the extent to which purchasing is one of the green supply chain

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management practices that can be applied in the validation mechanism, leading to a limited
textile industry (Kubiczek et al., 2024). The green capability to constitute proactive managerial
purchasing behavior involves the purchasing decision-making under uncertainty (Govindan &
environmentally friendly products that can be Jha, 2024). Sustainable supplier management
recycled, which is advantageous to the natural bridges the gap between expertise and knowledge,
environment and the acquisition of goods that are helps in the reduction of costs, creates more
made from recycled content which are business opportunities and may create a tax benefit
environmentally preferable products and services for the firms that agree to partner (Zhao, Ji, & Ji,
(Hazaea et al., 2022). 2024). The goal of sustainable supplier
management is to establish solid, long-term
For organizations, green purchasing is the primary
partnerships with the most efficient suppliers in
strategy of enterprises through which they can
order to secure your own competitiveness
improve efficiency and reduce waste, along with
(Govindan & Jha, 2024).
the possibility of enhancing competitiveness (Lee &
Hussain, 2024). Green purchasing capabilities Project Cost Performance
influence practices and sustainability performance Project cost performance refers to the evaluation
(Yee et al., 2021). In recent years, discussions on and measurement of how well a project is
green purchasing have increased. However, most performing in terms of its cost objectives
studies were concentrated in developed countries, (Rachmawati, Mudjahidin, & Dewi Widowati, 2024).
with limited studies conducted in developing Extant literature posits that project cost
countries (Hazaea et al., 2022). performance involves assessing the actual costs
incurred during the project against the planned or
Sustainable supplier management
budgeted costs (Zhou, Wang, Gosling, & Naim,
Strategic supplier management is an important
2023). However, completing road construction
success factor in any modern corporate culture
projects within the budget and time has been a
(Siddiquee, Shaha, & Hasin, 2024). It
problem (Gusbian & Amin, 2024). In construction
involves incorporating environmental, social, and
projects, cost deviation occurs which could either
ethical considerations throughout the entirety of
be positive or negative and if it is positive, it
a firm’s procurement (Lou, You, & Xu, 2024).
indicates the cost overrun (Al-Nahhas, Hadidi, Islam,
Sustainable supplier management is the
Skitmore, & Abunada, 2024).
development of a commitment over an extended
period of time to work together for the mutual Generally, time, cost and quality are the
benefit of the parties involved with the intention of performance areas which most of the researchers
sharing relevant information, risks and rewards have acknowledged (Ingle & Mahesh, 2022). Project
from the partnership (Yazdani, Ariza-Montes, performance is the overall measurement of
Arjona-Fuentes, & Radic, 2024). It includes the whether a project has met objectives and
management of all measures for controlling, requirements of scope, cost, and schedule (Kerzner,
planning and regulating the supplier base (Bai et al., 2022). In contrast, project cost performance
2024). represents to the evaluation and measurement of
how well a project is performing in terms of its cost
The sustainable supplier management processes
objectives (Rachmawati et al., 2024). However, one
necessitate the integration of multiple criteria,
of the major problems which are becoming very
efficient supplier coordination, and adaptability to
significant and is booming worldwide in the
evolving challenges (Li, Tsang, Wu, & Lee, 2024).
construction industry is the problem of cost overrun
However, conventional supplier management
(Sharma, Gupta, & Khitoliya, 2021). In recent years,
practices primarily rely on expert judgment, focus
cost overrun in construction projects has become a
on the present situation, and lack a robust decision

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major challenge in the completion of road In the Nigerian context, Bolaji, Abdul Rahim, and
construction projects. For both developed and Omar (2024) examined the influence of green
developing countries, cost overrun is a common practices on environmental performance in the SME
problem in the construction industry (Musarat et Sector. The results indicated that the relationship
al., 2021). The cost overrun of large-scale between the external green supply chain and
infrastructure projects that cost more than USD 35 environmental performance was the only direct
million to complete is a worldwide issue (Harris, hypothesis not supported by this investigation.
Marleno, & Oetomo, 2024). Therefore, a successful Specifically, the findings showed that a significant
project has to remain within budget (Safaeian et al., relationship exists between customer integration,
2022). green purchasing, and environmental performance.
Performance measurement, including accurate time Wungkana, Siagian, and Tarigan (2023) examined
and cost forecasts, is crucial for project control and the influence of eco-design, green information
management, especially during the early stages of systems, green manufacturing, and green
construction (Salih & El-adaway, 2024). Effective purchasing on manufacturing performance. The
cost management practices, such as activity-based results showed that the implementation of eco-
costing (ABC), earned value management (EVM), design has an influence on green purchasing and
and web-based management systems supported by green manufacturing. The findings suggested that
building information modelling (BIM), are essential eco-design and green information systems
for successful integrated project delivery (IPD) and implemented by the company can improve
elevated cost management practices (Rachmawati manufacturing performance by producing adequate
et al., 2024). However, poor cost performance in overall product quality, and the number of products
projects has become routine, and research has produced varies according to market demand. The
focused on understanding the factors contributing research revealed that green manufacturing and
to this issue (Zhou et al., 2023). green purchasing can influence manufacturing
performance.
Empirical Review
This section presents the empirical review. Nugroho, Tarigan, and Siagian. (2024) examined the
influence of green purchasing on operational
Green purchasing and Project Performance
performance. The results indicated that green
In the context of Türkiye, Balin and Sari (2023)
purchasing practices had a positive and significant
examined the effect of green purchasing practices
influence on operational performance. The findings
on financial performance under the mediating role
indicated that green purchasing practices had had a
of environmental performance. The findings
partial significant mediating influence in the
indicated that green purchasing practices, in
relationship between top management
general, make a positive contribution to both the
commitment and operational performance. The
environmental performance and financial
findings indicated that top management
performance of companies in Türkiye. However, the
commitment contributes more influence on the
results showed that the two green purchasing
operational performance through the mediating
practices sub activities, green supplier development
role of the green purchasing and the ISO1400
and green supplier evaluation, do not have a
implementation than its direct influence.
significant effect on environmental performance,
contrary to our expectation. The findings indicated In the Indonesian context, Kozuch, Langen, von
that environmental performance had a significant Deimling, and Eßig (2023) examined the link
increase in financial performance and plays a partial between green procurement practices and
mediating role in the effect of green purchasing performance employing meta-analysis. The findings
practices on financial performance. demonstrated that the introduction of green

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procurement practices has a positive effect in each findings indicated that contract management
of the areas. The results indicated that the difficulty negatively and significantly moderates the
introduction of green procurement practices relationship between supplier monitoring and
ultimately on organizations’ overall economic procurement performance.
performance.
METHODOLOGY
Sustainable supplier management and Project
This section presents the research methodology.
Performance
In the Tanzanian context, Changalima, Mchopa, and Research Philosophy: The research was guided by
Ismail (2022) examined the relationship between the positivist research philosophy which regards the
supplier development and procurement world as made up of observable and measurable
performance in the public sector. The results facts and assumes that there is an objective reality
indicated that supplier development had a positive out there. The positivist research philosophy
and significant relationship with procurement regards the world as made up of observable and
performance in public sector. The findings indicated measurable facts and assumes that there is an
that contract management difficulty negatively and objective reality out there (Ma & Xie, 2023).
significantly moderates the relationship between Research Design: The research employed the
supplier development and procurement correlational cross-sectional survey research design
performance. to examine the non-causal relationship between
Changalima, Ismail, and Mchopa (2023) examined study variables. The design was appropriate for
the effects of supplier selection and supplier collecting data once from many individuals at a
monitoring on public procurement efficiency in single point in time to test statistical relationships
Tanzania. The results indicated that supplier between two or more variables without the
selection and supplier monitoring had positive and researcher controlling or manipulating any of them
significant relationship with procurement (Aryuwat et al., 2024).
performance in public sector. The findings indicated
Target Population: The target population consisted
that supplier selection and supplier monitoring had
of 188 project implementation team comprising of
a positive and significant effect on procurement
47 regional directors, 47 supply chain officers and
performance in public sector.
94 prequalified contractors in charge of road
Changalima, Mchopa, and Ismail (2023) examined construction projects under the Kenya Rural Roads
the effect of supplier monitoring on procurement Authority in Kenya. The target population was as
performance in the public sector in Tanzania. The per the Kenya Rural Roads Authority (KeRRA,
results indicated that supplier monitoring had a 2023)’s database as 31st December, 2023. Table 1
positive and significant relationship with presents the target population.
procurement performance in public sector. The
Table 1: Target Population
Strata Frequency Percentage
Regional Directors 47 25%
Supply Chain Officers 47 25%
Prequalified Contractors in Every County 94 50%
Total 188 100%
Source: Kenya Rural Roads Authority (KeRRA, 2023)

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Sampling Frame: The sampling frame for this study N = Target Population;
consisted of the list of 188 project implementation
e = Margin of Error = 0.05.
team comprising of 47 regional directors, 47 supply
chain officers and 94 prequalified contractors in With a target population of 188 project
charge of road construction projects under the implementation team comprising of 47 regional
Kenya Rural Roads Authority in Kenya. The sampling directors, 47 supply chain officers and 94
was as per the Kenya Rural Roads Authority (KeRRA, prequalified contractors in charge of road
2023)’s database as 31st December, 2023. construction projects under the Kenya Rural Roads
Authority in Kenya, the minimum recommended
Sample Size and Sampling Techniques: This section
sample size for the study was calculated as:
presents the sample size and sampling techniques.
128
Sample Size: The Yamane (1967) formula was used
to calculate sample size at 95% confidence level and
5% significance level to ensure that the sample size Therefore, the minimum recommended sample
was truly reflective of the target population. size consisted of 128 project implementation team
comprising of 32 regional directors, 32 supply chain
officers and 64 prequalified contractors in charge of
road construction projects under the Kenya Rural
Where: Roads Authority in Kenya. Table 2 presents the
sample size.
n = Sample Size;

Table 2: Sample Size


Strata Frequency Sample Size
Regional Directors 47 32
Supply Chain Officers 47 32
Prequalified Contractors in Every County 94 64
Total 188 128

Sampling Techniques: The proportionate stratified reasonably quick span of time (Saunders &
random sampling technique was used to select a Kulchitsky, 2021).
sample size of 32 regional directors, 32 supply chain
Data Collection Procedures: A cross-sectional
officers and 64 prequalified contractors from a
survey-based approach was used to collect primary
target population of 47 regional directors, 47 supply
data. Through the drop and pick method, the
chain officers and 94 prequalified contractors in
researcher and three research assistants hand
charge of road construction projects under the
delivered the survey questionnaire to a random
Kenya Rural Roads Authority in Kenya. The choice of
sample of 32 regional directors, 32 supply chain
the proportionate stratified random sampling
officers and 64 prequalified contractors in charge of
technique was justified by the heterogeneous
the road construction projects under the Kenya
target population.
Rural Roads Authority in Kenya. A continuous follow
Data Collection Methods: A self-administered up on responses was made by the researcher and
structured questionnaire was the means for research assistants.
collecting primary data. The choice of the data
Data Processing and Analysis: Data processing and
collection method was justified by its ability to
analysis were conducted with respect to the
collect a large amount of information in a
research objectives.

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Data Processing: The collected data was coded, Model Specification: The multiple linear regressions
edited, and entered into the Statistical Package for model was specified as:
Social Sciences (SPSS) version 26 to create a data
Y = β0 + β1 X1 + β2 X2 + ε …………………….…. Model 1
sheet that was used for statistical analysis.
Where:
Descriptive Analysis: Descriptive analysis was
performed using SPSS software (version 26) to Y = Cost Performance of Road Construction Projects
compute, summarize the data in respect to each β0 = Constant Term
variable and describe the sample’s characteristics. β1 – β2 = Regression Coefficients to be estimated
X1 = Green Purchasing
Correlation Analysis: The Pearson’s product X2 = Sustainable Supplier Management
moment correlation analysis was performed to ε = Stochastic Error Term
confirm or deny the relationship between the study
variables. Hypotheses Testing: In this research, two null
hypotheses were tested at 5% level of significance
Regression Analysis: A standard multiple linear (α = 0.05; t = 1.960) at a 95% confidence level to
analysis was performed with performance of road statistically help draw acceptable and realistic
construction projects as the dependent variable and inferences. Therefore, the decision rule was to
green purchasing and sustainable supplier reject the H0i if the P ≤ 0.05, and otherwise fail to
management as the predictor variables. reject the H0i if the P > 0.05. Table 3 presents the
hypotheses testing procedure.

Table 3: Hypotheses Testing


Hypotheses Model Hypotheses Testing Decision Rule
H01: Green purchasing has no Y = β0 + β1 Standard Multiple H01: β1 = 0
significant influence on cost X1 + β2 X2 + ε regression analysis H11: β1 ≠ 0
performance of road construction …... Model 1 If the P ≤ 0.05 reject
projects in Kenya. the H01.

If the P > 0.05 fail to


reject the H01.
H02: Sustainable supplier management H02: β2 = 0
has no significant influence on H12: β2 ≠ 0
cost performance of road If the P ≤ 0.05 reject
construction projects in Kenya. the H02.
If the P > 0.05 fail to
reject the H02.

FINDINGS rate of 82.03%, which was adequate for data


processing and analysis. Generally, survey response
Response Rate
rates of 70% or higher are needed if findings are to
Out of the 128 survey questionnaires distributed for
be considered generalizable (Ericson et al., 2023).
the main study, only 105 valid responses were
Table 4 presents the response rate results.
obtained. Therefore, there was a valid response
Table 4: Response Rate
Strata Frequency Percentage
Response 105 82.03%
Non-Response 23 17.97%
Total 128 100.00%

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Correlation Results 0.579, p ≤ 0.05) in Kenya. However, the correlation
The Pearson’s product moment correlation analysis results showed that sustainable supplier
was performed to confirm or deny the relationship management had a strong positive and significant
between the study variables. The correlation results relationship with cost performance of road
indicated that green purchasing had a moderately construction projects (r = 0.743, p ≤ 0.05) in Kenya.
strong positive and significant relationship with cost Table 5 presents the Pearson’s product moment
performance of road construction projects (r = correlation results.
Table 5: The Pearson’s Correlation Results
Variable X1 X2 Y
Green Purchasing (X1) Pearson Correlation 1 .489** .579**
Sig. (2-tailed) .000 .000
n 105 105 105
Sustainable Supplier Management (X2) Pearson Correlation .489** 1 .743**
Sig. (2-tailed) .000 .000
n 105 105 105
Cost Performance of Road Construction Pearson Correlation .579** .743** 1
Projects (Y) Sig. (2-tailed) .000 .000
n 105 105 105
**. Correlation is significant at the 0.01 level (2-tailed).

Multiple Regression Results constant, green purchasing and sustainable supplier


A standard multiple linear analysis was performed management) was able to significantly predict and
with the cost performance of road construction explain approximately 61.3% of the variance in the
projects as the dependent variable and green cost performance of road construction projects in
purchasing and sustainable supplier management Kenya.
as the predictor variables. The standard multiple
The Adjusted R Square value of 0.606 suggest that
linear regression analysis, α = .05 (two-tailed), was
the overall model as a whole (the model involving
conducted to examine the extent to which, if any, of
constant, green purchasing and sustainable supplier
the linear combination of the predictor variables
management) significantly predicted and explained
(green purchasing and sustainable supplier
60.6% of the variance in the cost performance of
management) was able to predict the cost
road construction projects in Kenya. The std. error
performance of road construction projects in Kenya.
of the estimate value of 0.233 suggest that there
Model Summary could be other factors not included in the model in
From the model summary in table, it is clear that the current study that could also predict and
the value of coefficient of correlation (R) was 0.783, explain the remaining 39.4% of the variance in the
while the value of coefficient of determination (R2) cost performance of road construction projects in
was 0.613, while the value of the adjusted R2 was Kenya. Therefore, there is in need for future
0.606. Additionally, the value of the std. error of the research to discover the other variables not
estimate was 0.233 and the value of the Durbin- included in the model in the current study that also
Watson test was 2.459. The R value of 0.783 predict the remaining variance in the cost
suggest that there was a strong positive correlation performance of road construction projects in Kenya.
between the sustainable procurement practices and From the model summary table, the Durbin-Watson
the cost performance of road construction projects test statistic had a value of 2.459, falling within the
in Kenya. The R2 value of 0.613 suggest that the optimum range of 1.5 to 2.5, suggesting that there
overall model as a whole (the model involving was no severe autocorrelation detected in the in

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the residual values in the datasets. Generally, autocorrelation detected in the in the residual
Durbin-Watson statistics falling within the optimum values in the datasets (Hair et al., 2021). Table 6
range of 1.5 to 2.5 indicates that there is no severe presents the model summary results.
Table 6: Model Summaryb Results
Adjusted R Std. Error of the
Model R R Square Square Estimate Durbin-Watson
a
1 .783 .613 .606 .233 2.459
a. Predictors: (Constant), Sustainable Supplier Management (X2), Green Purchasing (X1)
b. Dependent Variable: Cost Performance of Road Construction Projects (Y)

Analysis of Variance was able to significantly predict the cost


From the Analysis of Variance (ANOVA) table, the performance of road construction projects in Kenya.
overall model as a whole (the model involving The standard multiple linear regression results
constant, green purchasing and sustainable supplier showed that the linear combination of predictor
management), achieved a high degree of fit, as variables (green purchasing and sustainable
reflected by R2 = 0.613, adj. R2 = 0.606, F (2, 102) = supplier management) significantly predicted the
80.826, p ≤ 0.05. The null hypothesis was that the cost performance of road construction projects in
linear combination of predictor variables (green Kenya. The null hypothesis was rejected in favor of
purchasing and sustainable supplier management) the alternative hypothesis. Therefore, the decision
was not able to significantly predict the cost was that the linear combination of predictor
performance of road construction projects in Kenya. variables (green purchasing and sustainable
However, the alternative hypothesis was that the supplier management) significantly predict the cost
linear combination of predictor variables (green performance of road construction projects in Kenya.
purchasing and sustainable supplier management) Table 7 presents the ANOVA results.
Table 7: ANOVAa Results
Model Sum of Squares df Mean Square F Sig.
1 Regression 8.745 2 4.372 80.826 .000b
Residual 5.518 102 .054
Total 14.263 104
a. Dependent Variable: Cost Performance of Road Construction Projects (Y)
b. Predictors: (Constant), Sustainable Supplier Management (X2), Green Purchasing (X1)

Multiple Regression Coefficients other factors held constant, a unit increase in green
From the coefficients table, when the purchasing would lead to 0.169 unit increase in the
unstandardized regression coefficients (B) were cost performance of road construction projects in
substituted to the multiple regression model Kenya. Moreover, the final predictive equation
specified for the study, the final predictive equation suggested that with all other factors held constant,
was: a unit increase in sustainable supplier management
would lead to 0.354 unit increase in the cost
Y = 1.899 + 0.169X1 + 0.354X2
performance of road construction projects in Kenya.
The final predictive equation suggested that holding Based on the magnitude of the unstandardized
all factors in to account constant (green purchasing regression coefficients (B) of the independent
and sustainable supplier management), constant at variables, sustainable supplier management was the
zero, the cost performance of road construction best predictor of the variance in the cost
projects in Kenya would be 1.899. Additionally, the performance of road construction projects in Kenya.
final predictive equation postulated that with all

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The multiple regression results indicated that green supplier management had a positive and significant
purchasing had a positive and significant influence influence on the performance of road construction
on the performance of road construction projects projects (β2 = 0.604; t = 8.551; p ≤ 0.05) in Kenya.
(β1 = 0.284; t = 4.029; p ≤ 0.05) in Kenya. The Table 8 presents the multiple regressions
regression results indicated that sustainable coefficients results.
Table 8: Multiple Regression Coefficientsa Results
Unstandardized Standardized
Coefficients Coefficients Collinearity Statistics
Std.
Model B Error Beta t Sig. Tolerance VIF
1 (Constant) 1.899 .160 11.871 .000
Green Purchasing (X1) .169 .042 .284 4.029 .000 .771 1.297
Sustainable Supplier
.354 .041 .604 8.551 .000 .761 1.314
Management (X2)
a. Dependent Variable: Cost Performance of Road Construction Projects (Y)

Hypotheses Test Results providing the empirical support for H11. Therefore,
deduction was made that green purchasing has a
In this research, 4 null hypotheses were tested. The
significant influence on cost performance of road
hypotheses were tested at 5% level of significance,
construction projects in Kenya.
α = 0.05, t = 1.960, and 95% confidence level to
statistically help draw acceptable and realistic Hypothesis Two Test Results
inferences. Therefore, the decision rule was to The second null hypothesis (H02) predicted that
reject the null hypothesis H0i if the P ≤ 0.05, and sustainable supplier management has no significant
otherwise fail to reject the null hypothesis H0i if the influence on cost performance of road construction
P > 0.05. projects in Kenya. The decision rule was to reject
the null hypothesis H01 if the β1 ≠ 0, t ≥ 1.960, P ≤
Hypothesis One Test Results
0.05, and otherwise fail to reject the null hypothesis
The first null hypothesis (H01) predicted that green
H01 if the β1 = 0, t < 1.960, P > 0.05. The standard
purchasing has no significant influence on cost
multiple regression results showed that sustainable
performance of road construction projects in Kenya.
supplier management had a positive and significant
The decision rule was to reject the null hypothesis
influence on the performance of road construction
H01 if the β1 ≠ 0, t ≥ 1.960, P ≤ 0.05, and otherwise
projects (β2 = 0.604; t = 8.551; p ≤ 0.05) in Kenya.
fail to reject the null hypothesis H01 if the β1 = 0, t <
Consequently, the H02 was rejected, providing the
1.960, P > 0.05. The standard multiple regression
empirical support for H12. Therefore, deduction was
results showed that green purchasing had a positive
made that sustainable supplier management has a
and significant influence on the performance of
significant influence on cost performance of road
road construction projects (β1 = 0.284; t = 4.029; p ≤
construction projects in Kenya. Table 9 presents the
0.05) in Kenya. Consequently, the H01 was rejected,
hypotheses test results.
Table 9: Hypotheses Test Results
Hypothesis β t Sig. Decision
H01: Green purchasing has no significant influence on cost Reject the H01
.284 4.029 .000
performance of road construction projects in Kenya.
H02: Sustainable supplier management has no significant Reject the H02
influence on cost performance of road construction .604 8.551 .000
projects in Kenya.

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Discussions with the results of previous studies (Balin & Sari,
The purpose of this quantitative correlational 2023; Nugroho et al., 2024; Wungkana et al., 2023).
research was to examine the influence of
The second specific objective was to assess the
sustainable procurement practices on the cost
influence of sustainable supplier management on
performance of road construction projects in Kenya.
cost performance of road construction projects in
Specifically, the research sought to examine the
Kenya. The second null hypothesis (H02) predicted
influence of green purchasing and sustainable
that sustainable supplier management has no
supplier management practices on the cost
significant influence on cost performance of road
performance of road construction projects in Kenya.
construction projects in Kenya. The Pearson’s
The Pearson’s product moment correlation analysis
correlation results indicated that sustainable
was performed to confirm or deny the relationship
supplier management had a strong positive and
between the study variables. The correlation results
significant relationship with cost performance of
indicated that the sustainable procurement
road construction projects in Kenya. The regression
practices had positive and significant relationship
results showed that sustainable supplier
with cost performance of road construction projects
management had a positive and significant
in Kenya. A standard multiple linear analysis was
influence on cost performance of road construction
performed with performance of road construction
projects in Kenya. The H02 was rejected, providing
projects as the dependent variable and green
the empirical support for H12. Therefore, the
purchasing and sustainable supplier management
decision was that sustainable supplier management
as the predictor variables. The regression results
has a significant influence on cost performance of
showed that the sustainable procurement practices
road construction projects in Kenya. The findings
had positive and significant influence on the cost
were consistent with the results of past studies
performance of road construction projects in Kenya.
(Changalima et al., 2022; Changalima et al., 2023).
The findings were consistent with the results of
previous studies (Agyapong et al., 2024; Mudashir SUMMARY
et al., 2024; Nangpiire et al., 2024). The purpose of this quantitative correlational
The first specific objective was to determine the research was to examine the influence of
influence of green purchasing on the cost sustainable procurement practices on cost
performance of road construction projects in Kenya. performance of road construction projects in Kenya.
The first null hypothesis (H01) predicted that green The Pearson’s product moment correlation analysis
purchasing has no significant influence on cost was performed to confirm or deny the relationship
performance of road construction projects in Kenya. between the study variables. The correlation results
The Pearson’s correlation results indicated that indicated that the sustainable procurement
green purchasing had a moderately strong positive practices had positive and significant relationship
and significant relationship with the cost with cost performance of road construction projects
performance of road construction projects in Kenya. in Kenya. A standard multiple linear analysis was
The regression results showed that green performed with performance of road construction
purchasing had a positive and significant influence projects as the dependent variable and green
on cost performance of road construction projects purchasing and sustainable supplier management
in Kenya. The H01 was rejected, providing the as the predictor variables. The regression results
empirical support for H11. Therefore, the decision showed that the sustainable procurement practices
was that green purchasing has a significant had positive and significant influence on the cost
influence on cost performance of road construction performance of road construction projects in Kenya.
projects in Kenya. The findings were in harmony

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The first specific objective was to determine the between the study variables. The correlation results
influence of green purchasing on the cost indicated that the sustainable procurement
performance of road construction projects in Kenya. practices had positive and significant relationship
The first null hypothesis (H01) predicted that green with cost performance of road construction projects
purchasing has no significant influence on cost in Kenya. A standard multiple linear analysis was
performance of road construction projects in Kenya. performed with performance of road construction
The Pearson’s correlation results indicated that projects as the dependent variable and green
green purchasing had a moderately strong positive purchasing and sustainable supplier management
and significant relationship with the cost as the predictor variables. The regression results
performance of road construction projects in Kenya. showed that the sustainable procurement practices
The regression results showed that green had positive and significant influence on the cost
purchasing had a positive and significant influence performance of road construction projects in Kenya.
on cost performance of road construction projects Therefore, the conclusion was that sustainable
in Kenya. The H01 was rejected, providing the procurement practices have significant influence on
empirical support for H11. Therefore, the decision cost performance of road construction projects in
was that green purchasing has a significant Kenya.
influence on cost performance of road construction
The first specific objective was to determine the
projects in Kenya.
influence of green purchasing on the cost
The second specific objective was to assess the performance of road construction projects in Kenya.
influence of sustainable supplier management on The first null hypothesis (H01) predicted that green
cost performance of road construction projects in purchasing has no significant influence on cost
Kenya. The second null hypothesis (H02) predicted performance of road construction projects in Kenya.
that sustainable supplier management has no The Pearson’s correlation results indicated that
significant influence on cost performance of road green purchasing had a moderately strong positive
construction projects in Kenya. The Pearson’s and significant relationship with the cost
correlation results indicated that sustainable performance of road construction projects in Kenya.
supplier management had a strong positive and The regression results showed that green
significant relationship with cost performance of purchasing had a positive and significant influence
road construction projects in Kenya. The regression on cost performance of road construction projects
results showed that sustainable supplier in Kenya. The H01 was rejected, providing the
management had a positive and significant empirical support for H11. Therefore, the first
influence on cost performance of road construction conclusion was that green purchasing has a
projects in Kenya. The H02 was rejected, providing significant influence on cost performance of road
the empirical support for H12. Therefore, the construction projects in Kenya.
decision was that sustainable supplier management
The second specific objective was to assess the
has a significant influence on cost performance of
influence of sustainable supplier management on
road construction projects in Kenya.
cost performance of road construction projects in
Kenya. The second null hypothesis (H02) predicted
CONCLUSION
that sustainable supplier management has no
The purpose of this quantitative correlational
significant influence on cost performance of road
research was to examine the influence of
construction projects in Kenya. The Pearson’s
sustainable procurement practices on cost
correlation results indicated that sustainable
performance of road construction projects in Kenya.
supplier management had a strong positive and
The Pearson’s product moment correlation analysis
significant relationship with cost performance of
was performed to confirm or deny the relationship

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road construction projects in Kenya. The regression Limitations and Future Research
results showed that sustainable supplier This research paper generates novel insights into
management had a positive and significant how sustainable procurement practices predict the
influence on cost performance of road construction performance of road construction projects.
projects in Kenya. The H02 was rejected, providing However, the current research has a number of
the empirical support for H12. Therefore, the limitations, that need to be taken into
second conclusion was that sustainable supplier consideration. First, the research was limited to the
management has a significant influence on cost influence of sustainable procurement practices on
performance of road construction projects in Kenya. cost performance of road construction projects in
Kenya. Subsequently, caution should be taken when
RECOMMENDATIONS
attempting to generalize the results beyond the
From the findings of this research, the research
construction industry. Future research could
recommends that the project managers should
examine the influence of sustainable procurement
implement sustainable procurement practices to
practices on project performance in other sectors or
foster the performance of road construction
in other regions. Second, the research was
projects.
contextually limited to only two sustainable
From the findings of this research, the research procurement practices, namely green purchasing
recommends that the policy makers within and sustainable supplier management. Future
construction industry should to review the policy research should examine the influence of other
framework to encourage project managers to sustainable procurement practices on performance
implement sustainable procurement practices to of road construction projects. Third, as the research
foster the performance of road construction paper relied on a cross-sectional survey design, no
projects. inferences about the causality of relationships can
be made. Therefore, future researchers should
consider conducting a longitudinal study on the
influence of sustainable procurement practices on
performance of road construction projects.

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