Influence of Supplier Performance as a Mediator on the Relationship of Project Completion in Kenya

Abstract

One of the determining features of project success is supplier performance; this is especially true in the context of healthcare projects in which the on-time delivery, compliance with the quality standards, and adherence to the agreement are directly responsible. This paper defines healthcare projects as formal projects, which have formal budgets and deliverables to enhance service provision in the field of healthcare in Kenya. These were: hospital construction and supplying equipment, disease-specific (HIV/AIDS, TB, malaria, maternal and child health), supply chain, and workforce capacity-building. The criteria were that the funded projects were to be official ones fundable by the national government, county governments, or international donors like USAID, World Bank, and Global Fund, but informal, private, and non-health projects were not eligible. Based on the Stakeholder Theory and the Supply Chain Integration Theory, which jointly account for the enhanced performance of projects using collaboration and coordinated supply chains, the paper discussed the mediating variables of the relationship between stakeholder involvement and project completion in the healthcare sector, which is the performance of the supplier. The descriptive and explanatory design was used, and data were collected on 223 respondents in 47 counties. The data were calculated in the form of descriptive statistics, correlation, and regression formulas. The census method has been taken, and a survey of the 223 funded healthcare projects has been conducted. This method was selected due to the fact that the number of projects was manageable and enabled extensive coverage without minimal errors in sampling, thus having some probability that the results were representative of the healthcare sector in Kenya. The performance of the suppliers was estimated based on the delivery on time, quality of products, adherence to the contract, and readiness to satisfy the project requirements. The results indicated that, as a mediating factor between stakeholder engagement and project completion (β = 0.317, p < 0.05), although stakeholder engagement contributes directly to completion, a portion of that contribution is attributed to excellent supplier performance. There were more completion rates, accountability, and sustainability of projects that had reliable suppliers. This research suggests that performance-based systems of supplier assessment and ongoing monitoring mechanisms should be used by implementing agencies with the view of enhancing efficiency and timely delivery of health services.