Influence of Supplier Appraisal on Procurement Performance in the Real Estate Industry in Kenya: A case study of International House Ltd.

Procurement has increased in importance exponentially, as it has become a corporate weapon to realize organizational competitiveness. Thus, the function performance is of paramount importance to organizations in achieving their competitive advantage. To achieve this, supplier management becomes a critical issue. However, many organizations fail to carry out the supplier appraisal programs and when it is done it is not well structured and does not achieve the desired results. This study sought to establish the influence that the supplier appraisal has on the procurement performance in the real estate industry. It deeply studied how supplier appraisal criteria, models, practices and supplier development influence procurement performance. To achieve this objective, the study employed a descriptive research design. The data was collected using a questionnaire from the employees of International House Ltd. The study used stratified sampling method in coming up with a sample size of 36. The collected data was edited, coded and entered for analysis using statistical package for analysis (SPSS) version 17. Descriptive statistics such as frequencies and percentages and augmented with measures of central tendency (mean) and dispersion (standard deviation) were used. Additionally, multiple linear regression analysis was conducted to determine the relationship between dependent and independent variables. The findings were presented in pie charts, bar graphs, and tables for clarity. The study established that the research model predicts 57.1% of the procurement performance in the real estate industry.