ROLE OF PROCUREMENT PRACTICES ON THE PERFORMANCE OF CORPORATE ORGANIZATIONS IN PAKISTAN: A CASE STUDY OF TEXTILE INDUSTRY

Abstract

Purpose: The current research is about the procurement practices in textile sector of Pakistan. Pakistan textile sector is very dynamic and significantly affect the economy because many Pakistan based company are directly involved in exports. Therefore, the organizations must have sound procurement practices. If these companies will succeed and increase their profitability, only then the economic output will increase and economy will flourish. Methodology/sample: The current research is based on non-probability sampling and convenience sampling. This technique has been used because the research does not have access to purchases professionals all over Pakistan. A sample size of 100 purchases professional has been used for data collection. Correlation and regression has been used to test the hypothesis Findings: It has also been found that use of information technology also enhanced the performance of the organization. It’s a matter of fact that in this era of technology only those organizations are successful which are adaptive to information technology. Relationship with suppliers is also an important factor which has been studied in this research. It has been found that supplier relationship also affects the organizational performance and it is positively correlated with the organizational performance. . Furthermore the results of the study also revealed that record management is also positively correlated with the organizational performance. It has also been found in this study that cost management, record management, information technology and supplier relation all are significant predictors of the organizational performance in textile sector of Pakistan. Practical Implications: The current research fills in gap in the existing research.