Sme Capabilities, Supplier Development and Sme Performance in Oil And Gas Sector in Central Uganda.
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Date
2024-11-14
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Makerere University Business School
Abstract
Despite the various efforts by government of Uganda and development partners such as putting in place National Content Regulations, the SME National Supplier Database (NSD), conducting regular supplier capacity building trainings and encouraging SMEs to participate in the oil and gas supply chain activities, there are still challenges in the performance of SMEs in the oil and gas sector. The study examines the relationship between SME capabilities, supplier development and SME performance in the oil and gas sector in Central Region. The study used cross sectional design with quantitative approaches. The study involved 1540 SMEs registered in the national supplier data base of Petroleum Authority of Uganda. The sample size of the study was 306 and was obtained using Krejcie and Morgan (1970) sample size determination Table. The study employed simple random sampling to select operations managers from SMEs to participate in the study. Data collection utilized questionnaires. The study revealed a positive significant relationship between SME capabilities and SME performance (r =.623, p=.000) in the oil and gas sector. Also, a positive relationship exists between supplier development and SME performance (r = .777, p=.000). The results also show that there is a positive predictive relationship between SME capabilities and supplier development on SME performance. However, supplier development is a major predictor for SME performance (Beta = .633, p=.000). These variables explain 63.6% of the variance in SME performance (adjusted R Square =.636) in the oil and gas sector. Therefore, the remaining 36.4% is explained by other factors that have not been studied in this study. It was concluded that supplier development and SME capabilities are important determinants of SME's overall performance in the oil and gas sector. It was therefore recommended that there is need for supplier Development Excellence Program to foster continuous improvement in SMEs, foster strategic alliances and partnerships with SMEs to enhance their capabilities. Client SMEs like Total energies should establish a robust performance measurement system that provides real-time data on supplier performance and SME capabilities.
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This is a master's thesis.
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Kahangire, G. (2024). Sme Capabilities, Supplier Development and Sme Performance in Oil And Gas Sector in Central Uganda. (Unpublished master's dissertation). Makerere University Business School, Kampala, Uganda.