Tag Archives: Procurement Performance

Operational Budgeting and Procurement Performance among Manufacturing Firms within Jinja Industrial Hub in Uganda (Published)

Ineffective operational budget management negatively affects manufacturing firms’ procurement performance. This paper investigates the impact of operational budgeting on procurement performance among manufacturing firms within the Jinja industrial hub in Uganda. A self-administered research instrument was used to collect the data on the operational budgeting variables of budgeting approaches, budget reviews, budgeting ethics, and expense forecasts. The study adopted a survey-based approach and a stratified simple random sampling technique to collect the data from a sample of 97 manufacturing firms within the Jinja industrial hub in Uganda. The data quality control was ensured by establishing the research instrument’s internal consistency that yielded an overall Cronbach’s reliability coefficient of 0.80. Correlation analysis and regression analysis techniques were applied to analyze the data. The study revealed significant positive correlations (p < 0.01) between all the variables of operational budgeting and procurement performance of manufacturing firms within the Jinja industrial hub in Uganda. The multiple regression analysis results indicated that R2 = 29.5% and Adj.R2 = 25.9%. Furthermore, for the whole multiple regression analysis model F(4,80) = 8.357, p < 0.001, which signified that there was a significant impact of operational budgeting on procurement performance among manufacturing firms within the Jinja industrial hub in Uganda. The authors recommend that manufacturing firms should emphasize organizational goal attainment, practicability, cost reduction, and resource allocation efficiency when choosing budgeting approaches. Additionally, operational budgeting should be prioritized by manufacturing firms the same way as capital budgeting.

Keywords: Jinja industrial hub, Manufacturing Firms, Procurement Performance, Uganda, operational budgeting

Influence of Procurement Risk Management on Procurement Performance of Mega Projects in the Energy Sector in Kenya (Published)

Governments around the world face a rising demand for infrastructure. Most governments, including Kenya, are attempting mega projects to bridge the infrastructural gap. Kenya has prioritized, under the Kenya Vision 2030, a number of Mega projects. However most mega projects have, (or are), experienced procurement related challenges, which threaten their efficient implementation thereby threatening achievement the Vision 2030 aimed at transforming Kenya into a middle income Nation. The energy sector, a critical support sector of the Vision 2030 pillars, plans to increase power production by 10,000Mw by the year 2030, from the current estimated production of slightly above 2000Mw, through an array of mega projects. This study set out to examine the influence of Procurement Risk Management on the procurement performance of Mega projects in the energy sector in Kenya. The study entailed a census of all the 47 mega projects under the various public procuring entities in the energy sector. The unit of observation was the procurement managers in the procuring entities dealing with mega projects. Objectively developed questionnaires were used to collect primary data. The data collected was sorted, coded and entered into the computer statistical package (SPSS), for production of descriptive and inferential statistics. The study found that Procurement risk management has a significant influence on procurement performance of mega projects in the energy sector in Kenya. The study also found inadequacies in the ability procurement processes of Mega projects to collect adequate information for contractor evaluation which may lead to contracting unqualified contractors. This study thus recommends enhanced adoption of Procurement risk management practice. It also recommends review of the procurement mechanism to enhance collection of adequate, accurate data for risk pricing (to reduce political interference) and evaluation processes.  

Keywords: Mega Projects, Procurement Performance, Procurement Risk management

The Effect of Professionalism on Performance of Procurement Function in the Public Sector: Experience from the Tanzanian Public Entities (Published)

The central focus of this study is to assess the effect of procurement professionalism on performance of the public procurement function in Tanzania. In order to achieve the stated objective, respondents were asked questions on management of records and documents, staffing of the procurement department, competency of personnel involved in the procurement activities, independence of functions and powers in  discharging procurement responsibilities and existence of the Professional Code of Ethics and Conduct. The target population was 470 public entities out of which 100 entities purposively constituted the sample size. Performance of the procurement function was assessed by the extent to which the department has achieved the procurement objectives expressed in terms of on Time delivery, right Quality and right Cost of the procured items, works and services. The study used mixed – qualitative and quantitative research techniques for data collection, presentation and analysis. The study used a multistage stratified random sampling technique in identifying potential respondents. The study was guided by a null hypothesis that there is no significant effect of procurement professionalism on performance of the procurement function in the Tanzanian public entities. Data were mainly collected through structured and self administered questionnaires supported with face to face oral interviews. Based on the results of the regression analysis,   the coefficient for procurement professionalism is 0.526 and the t-test value is 4.360 and this coefficient is significant (p – value =0.000 < 0.05). These findings suggest that 53% of the variation in performance of the procurement functions in public entities was explained by the extent to which officials involved in the procurement process and decisions in the entity had adhered to procurement professionalism in the course of discharging procurement functions and responsibilities. The study recommends that the procurement departments in Tanzania must be staffed with adequate and professionally qualified personnel. The strategic importance of procurement professionalism on performance of the procurement function will only be realized if there is enforcement of the current provisions of the law addressing procurement professionalism.

Keywords: Procurement Function, Procurement Performance, Procurement Professionalism, Procuring Entity