Influence of the Supply Chain Infrastructure Context on Procurement Policy Implementation among Insurance Companies in Kenya

Abstract

Purpose: This study examined the influence of the supply chain infrastructure context on procurement policy implementation among insurance companies in Kenya. Methodology: The study was grounded theoretically in Institutional Theory and adopted a descriptive cross-sectional survey research design targeting all 52 licensed insurance companies in Kenya as per the Insurance Regulatory Authority (IRA, 2024) registry, with data collected from Chief Procurement Officers (CPOs), Supply Chain Managers (SCMs), or Operations Managers in each company. The study used a census approach and structured questionnaires with variables measured on a five-point Likert scale. Prior to main data collection, a pilot study involving 10% of the target population validated the research instrument, with Cronbach's Alpha confirming internal consistency. Of the 52 questionnaires administered, 46 were properly completed and returned, representing a response rate of 88.5%. Data were analysed using SPSS version 25.0, applying descriptive statistics and inferential statistics, including Pearson's correlation, multiple linear regression, and ANOVA. Diagnostic tests, specifically the Variance Inflation Factor for multicollinearity, the Shapiro-Wilk test for normality, the Breusch-Pagan test for heteroscedasticity, and the Durbin-Watson statistic for autocorrelation, were conducted before regression analysis and confirmed that the model assumptions were satisfied. Findings: The regression results showed that the supply chain infrastructure context (β = 0.381, B = 0.275, t = 3.490, p = 0.001) made a positive and statistically significant contribution to procurement policy implementation. Supply chain infrastructure context emerged as the strongest predictor of procurement policy implementation, followed by supplier network structure context, information sharing and integration context, and market dynamics context. Unique Contribution to Theory, Practice and Policy: Theoretically, the study validates Institutional Theory in explaining how insurance companies adapt procurement policies to regulatory and market pressures, while confirming the need to integrate the Resource-Based View, Technology Acceptance Model, and Transaction Cost Theory to fully account for the infrastructure, network, and information-sharing dimensions of procurement policy implementation. In practice, the study recommends that insurance company management prioritise investment in integrated electronic procurement infrastructure covering the complete procurement cycle, supplier network development, and information-sharing systems. At the policy level, the study recommends that industry regulators and procurement professionals strengthen market risk management guidance to support procurement policy implementation across the sector.