Supplier Selection and Procurement Performance: A Study of Private Pharmaceutical Manufacturing Firms in Kampala District.
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Date
2024-07-12
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Makerere University Business School
Abstract
The study examined the influence of supplier selection on the procurement performance of pharmaceutical manufacturing firms. Specifically, the study examined: (i) the relationship between supplier profile and procurement performance; (ii) supplier capabilities and procurement performance; and (iii) supplier’s strategic fit to the organization and procurement performance. A cross-sectional survey design with a quantitative approach in generating the required information was used. A population of 85 pharmaceutical manufacturing firms was identified for Kampala from the National Drug Authority register and a sample size of 70 was derived at using a sample determination table. Data were collected using survey questionnaires. All the statistical analyses were conducted using the SPSS software package version 25. The results revealed that supplier profile had a positive linear relationship with procurement performance (r=0.701, p<0.05) as was
the case with supplier capabilities (r=0.659, P<0.05) and supplier’s strategic fit (r=0.510, P<0.05). This was a clear indicator that supplier profile, supplier capabilities and supplier’s strategic fit as separate independent variables have a positive effect on procurement performance a dependent
variable. Of the three variables, supplier profile was the most significant contributor to procurement performance β = .410, followed by supplier capabilities β = .288 while supplier strategic fit contributed to procurement performance β = .210. The study recommends that to improve procurement performance there is need to prioritize a comprehensive supplier selection and profiling process.
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This is a master's thesis.
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Citation
Mbabazi, R. A. (2024). Supplier Selection and Procurement Performance: A Study of Private Pharmaceutical Manufacturing Firms in Kampala District. (Unpublished master's dissertation). Makerere University Business School, Kampala, Uganda.