International Journal of Scientific & Engineering Research Volume 9, Issue 4, April-2018 750 ISSN 2229-5518 IJSER © 2018 http://www.ijser.org INFLUENCE OF SUPPLIER RELATIONSHIP GOVERNANCE STRUCTURE (SRGS) ON PROCUREMENT PERFORMANCE OF STATE CORPORATIONS IN NAIROBI COUNTY, KENYA Kelly Caroline 1 , Achuora John 2 Jomo Kenyatta University of agriculture and technology 1 & 2 ABSTRACT- This study examines the influence of Supplier Relationship Governance Structure on the Performance of Procurement in State Corporations in Nairobi County, Kenya. Specifically, the study sought to establish the effect of contract management team, problem escalation path for suppliers, Supplier appraisal agreement and risk management system on the performance of procurement in Nairobi County. A descriptive cross sectional survey research design was emplyed and stratify random sampling approach was used to ensure representitiveness of the population of the the study. Descriptive statistics as well as regression analysis were used to facilitate examination of the relationship between the variables of interest. The study findings indicate that risk management system have greatest influence on the procurement performance , followed by supplier appraisal agreement, escalation path for suppliers and contract management teams respectively. The study recommends that state corporations should jointly work with vendors in developing a unify risk management system in order to improve their procurement performance. Keywords: supplier relationship governance structure, procurement performance, Nairobi County, of contract management team, escalation path for suppliers, Supplier appraisal agreement and risk management system 1. Introduction 1.1 Background of the Study The bottleneck competition for goods and services from external suppliers has increased pressure on procurement personnel to develop strategies capable of differentiating and giving their firms’ preferential treatment by the suppliers with a view of improving their performance (Mollahoseseini & Barkhorda, 2010). Improving the acquisition and leveraging the supply chain base through supplier relationship governance structure has become more critical than ever before in achieving procurement performance (Felix, Chan, Kumar, Tiwari, Lau and Choy, 2008). Suppliers play strategic role in creating competitive advantage and their actions are likely to contribute to procurement performance (Jabbour & Jabbour, 2009). All successful firms build strong relationships with their vendors; firms are not remote units that simply procure goods and services from individuals (Kotzab, Teller, Grant & Sparks, 2011). Successful firms appreciate the need to build bridges between their firms and the vendors which they work IJSER