INFLUENCE OF BUYER-SUPPLIER DEPENDENCE ON PERFORMANCE OF FOREIGN BASED DEVELOPMENT AGENCIES IN KENYA
View/ Open
Date
2018Author
Karungani, Walter
Guyo, Wario
Otieno, Romanus Odhiambo
Getuno, Pamela
Metadata
Show full item recordAbstract
Buyers depend on suppliers for goods and services while suppliers depend on buyers for revenue. In business, dependency theory holds that firms can benefit from each other by building relationships where they feel obligated to act in responsible manner to support other firms because they depend on them. The theory holds that the higher the dependency the higher the benefits and hence performance. This study evaluated the dependency theory using data obtained from 111 respondents from 37 foreign based development agencies in Kenya. The respondents included senior managers, procurement officers and accountants and data was obtained through a questionnaire and analyzed using SPSS. The study obtained negative weak correlations between buyer-supplier dependence and performance and coefficients were not statically significant and 5 percent level of significance. Instead of levels of dependence, the study recommends the need for buyer supplier dependence symmetry such that both parties depend on each other and value each other for them to protect the relationship.