THREE LEVELS OF LEADERSHIP MODEL, ORGANIZATION CLIMATE AND ETHICAL PROCUREMENT IN COUNTY REFERRAL HOSPITALS IN KENYA

Abstract

Approximately, about 18.42% of the global gross domestic product is expended through procurement. Procurement malpractices have however been on the rise in Kenya with every passing decade. This trend has been associated with a loss of public funds equivalent to 12% of the GDP. Such hemorrhage of public coffers has given Kenya a dismal ranking on transparency rate being 136 out of 174 of the global economies. This study therefore, seeks to examine the empirically antecedents to resolve persistent ethical lapses in the procurement process. The purpose of this study is to establish the influence of the three levels leadership model and organizational climate on ethical procurement in Level 5 county referral hospitals in Kenya. The specific objectives were to determine the influence of public, private and personal levels of leadership model and organizational climate on ethical procurement. The research relies on empirical review as well as theoretical review based on several theories namely: stakeholder theory, agency theory, stewardship theory and the systems theory. The utilized mixed methods research paradigm. Further, cross sectional survey research design was adopted. This research sought to explore the influence of three levels of leadership model and organisation climate on ethical procurement in county referral hospitals in Kenya and suggest probable areas of the model that can enhance ethical procurement. The target population for this study was procurement officers that execute procurement in level 5 county referral hospitals in Kenya. The unit of analysis was the level 5 county referral hospitals in Kenya. A census was undertaken in all the 12 Level 5 hospitals in Kenya all the 172 procurement employees were targeted as respondents. A pilot study was conducted in Murang‟a county hospital to pretest the data instrument preceding actual data collection. Reliability was tested using crobanch alpha. Constructs and content validity was undertaken prior to the data collection. Primary data was obtained using a questionnaire. Pearson‟s correlation coefficient was used to determine the relationship between the independent and the dependent variables. Multiple regression analysis were used to test the hypotheses and the findings were presented in tables, pie charts and percentages. For qualitative data, content analysis was done and emergent themes were numerated and presented in pie charts. This research will benefit county referral hospitals and the industry by providing insightful thoughts on application of three levels of leadership model and organisation climate in enhancing ethical procurement. Results show positive relationship between the three levels of leadership model, organisation climate and ethical procurement. Study findings show that public and private level of leadership had a significant effect on ethical procurement. When hypothesis findings were supplemented with findings of the content analysis, personal level of leadership was established to be repressed by organisation climate and hence the relationship though positively correlated was not significant. Organisation climate had significant mediating influence between the three levels leadership model and ethical procurement. This study recommends that county referral hospitals augment public and private level of leadership through capacity building and setting of an example amongst those in positional leadership. As well, this study recommends value of personal leadership level be unlocked through empowerment of individuals, enhancement of work environment and weeding out of interferences to the procurement process both internally and externally.