Impact of Supplier Competence and Supplier Management on Procurement Performance: A Case of FMCG

Abstract

This study investigates the impact of supplier competence and supplier management on procurement performance with moderating effect of supplier’s organizational culture in FMCG sector of Pakistan. This study has used supplier competence and supplier management as independent variables. Supplier’s organizational culture is used as a moderator. Procurement performance is used as dependent variable. FMCG sector of Pakistan is the sector chosen to investigate the relationship between variables mentioned above. Quantitative research method is used, as primary data is collected through adoptive structured questionnaire based on 5-Likert scale. The responses are recorded from 250 respondents (supply chain members associated with FMCG sector of Pakistan) through convenience sampling technique. Responses recorded are analyzed through statistical tests (such as correlation, regression, and moderation analysis) by using SPSS Software. The results derived from correlation and regression analysis reveal that supplier competence and supplier management impact procurement performance in FMCG sector of Pakistan. Furthermore, moderation analysis has proved the significant moderating effect of supplier’s organizational culture in relationship between supplier competence and supplier management (independent variables) and procurement performance in FMCG sector of Pakistan.