EFFECT OF PROCUREMENT PROCESSES ON PROCUREMENT PERFORMANCE IN THE MANUFACTURING SECTOR OF PAKISTAN

Abstract

Purpose: The study has aimed to investigate the effect of procurement planning, resource allocation, staff competency and procurement procedures on procurement performance in the manufacturing sector of Pakistan. Methodology & Design: The study has used quantitative explanatory design to understand the phenomenon. Data was collected using five-point Likert scale questionnaire, measures were adapted from past literature, and total 120 sample responses were collected from the manufacturing companies of Karachi, Pakistan based on convenience sampling technique. Multiple regression analysis alongwith exploratory factor analysis and Cronbach’s alpha reliability tests have been employed in the current study. Findings: The results have shown that procurement procedure, resource allocation and procurement planning have been found positive and statistically significant in relation to procurement performance. However, staff competency was found positive but statistically insignificant in relation to procurement performance. Limitations: The first limitation is certainly the demographic confinement that is, the current was restricted to Karachi-based manufacturing firms of Pakistan due to accessibility leverage. Furthermore, the emphasis of this research is limited to procurement practices and procurement performance and the data was gathered from manufacturing sector of Pakistan. The respondent of other countries have different preferences and they have different opinion from the viewpoint of procurement practices and procurement performance. Recommendations: Companies should focus on training and development, adequate planning and procedural perspective for effective procurement management. Implementation of electronic procurement mechanism and processes can also enhance procurement performance in the larger perspective