EFFECTS OF PROCUREMENT MANAGEMENT PRACTICES ON OPERATIONAL PERFORMANCE OF PRIME CEMENT LIMITED
Abstract
Procurement management practices are becoming critical towards enhancing operational performance of many organizations. The study aims to assess the effects of procurement management practices on operational performance of Prime Cement Ltd. The study was guided by stakeholder theory, transaction cost economy theory, institutional theory and resource dependence theory. The study was quantitative in nature and employed a descriptive research design. Both primary and secondary data were gathered. The target population for this research was 200 respondents. The sample size was made up of 134 respondents and it was selected using stratified sampling technique. The research instrument validity was tested using expert assessment and reliability was checked using Cronbach alpha which was .833. The study utilized descriptive statistics where mean and standard deviation were determined. The findings of the study indicated that inventory management is statistically significant on the operational performance of Prime Cement Ltd (r = .607, N = 134, p = 0.01). The results of the study also confirmed that procurement planning is statistically significant on operational performance of Prime Cement Ltd (r = .564, N = 134, p = 0.01). From the correlation test conducted, it was revealed that supplier selection is statistically significant on the operational performance of Prime Cement Ltd (r = .622, N = 134, p = 0.01). The findings from data analysis affirmed that contract management statistically significant on the operational performance of Prime Cement Ltd (r = .760, N = 134, p = 0.01). The study concluded that procurement management practices influence operational performance of Prime Cement Ltd. The study also recommends that organizations should put more efforts in complying with procurement best practices for efficient operations.
Key words: Procurement management practices, procurement Planning, supplier selection, contract management, Operational Performance
CITATION: Murenzi, S., Tarus, T., & Hagenimana, F. X. (2024). Effects of procurement management practices on operational performance of Prime Cement Limited. The Strategic Journal of Business & Change Management, 11 (2), 1288 – 1313. http://dx.doi.org/10.61426/sjbcm.v11i2.2982
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i2.2982
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