EFFECT OF SUPPLIER QUALITY COMMITMENT ON THE PROCUREMENT PERFORMANCE GOVERNMENT MINISTRIES IN RWANDA

Abstract

Selection and maintaining competent suppliers are very essential in procurement. There are many factors that affect a firm's ability to choose the right supplier. Less has been done to investigate the supplier quality commitment on the procurement performance in the Rwandan context. The purpose of the study was to examine the effect of supplier quality commitment on the procurement performance within MININFRA. The study adopted descriptive research design to effect of supplier quality commitment on the procurement performance within MININFRA. The study population was 102 employees from all departments of MININFRA. 45 employees were sampled by using Slovin’s formula. This study used questionnaire technique to correct data. Quantitative data obtained from close ended questions was analyzed by using descriptive statistics. Narrative data obtained from interviews and open-ended questions in the questionnaire were analyzed using qualitative approaches. Data collected was analyzed using SPSS version 21. The results indicated that Supplier quality commitment have a relationship with Procurement performance. The significance was 0.000 which indicated that there is positive relationship (0.772) between Supplier quality commitment and Procurement performance. These results provided reasonable evidence to the consistent view that, Procurement performance of MININFRA justified by increase of Supplier quality commitment. The beta of Supplier quality commitment was .444 with a t-statistic of 2.241. The positive coefficients mean a unit change in Supplier quality commitment leads to 0.772 units increase in Procurement performance while keeping financial sustainability and Supplier competence constant. P- value = 0.000 < 0.05 the positive t-statistic value indicated that the effect is statistically significant at 5 % test level. The study concluded that the ministry of infrastructure has supplier appraisal evaluation criteria in place for various supplier categories. In overall, achievement of product quality affects procurement performance though the effect is not significant. The study recommended that supplier evaluation should be done by experts who are knowledgeable and have expertise to conduct the exercise professionally. This is because supplier selection and evaluation are a process vulnerable to personal and political interference especially in the public sector. Quality commitment must be considered a critical factor in supplier evaluation and supplier selection.

Keywords: Supplier evaluation, supplier performance management, procurement performance

CITATION: Munyaneza, R., & Mulyungi, P. (2021). Effect of supplier quality commitment on the procurement performance government ministries in Rwanda. The Strategic Journal of Business & Change Management, 8 (1), 447 – 456.