Analysis of the Relationship between Strategic Procurement Practices and Corporate Performance in Rwanda: A Case of Bralirwa Ltd (2019-2022)
DOI:
https://doi.org/10.53819/81018102t2322Abstract
This research on analysis of the relationship between strategic procurement practices and corporate performance in Rwanda is motivated by the research problem, According to Bralirwa`s financial report, the cost of purchase were respectively high at a rate of 1,756,012,000 in 2020 and increased by 3,755,000,000 in 2021 and increased by 8,595,700,000 and this lead to the poor corporate performance due to the high costs incurred during the acquisition of materials. The variation of the cost increase is 46.8% by 2021 and increased by 43.7% by 2022. The research objective is to analyze the relationship between strategic procurement practices and corporate performance of Bralirwa Ltd. The research specific objectives are: to investigate the relationship between supplier relationship and the corporate performance of Bralirwa Ltd; to examine the relationship between information technology and corporate performance of Bralirwa Ltd and to analyze the relationship between strategic sourcing and the corporate performance of Bralirwa Ltd. This study used three different theories which are: agency theory, Dynamic Capability Theory and Resource-based theory. The study was guided by the descriptive and correlation research design using quantitative approaches. The study targeted 100 respondents from different working unit. As the total population was small, census survey was used and data were collected by using of questionnaires. The study used Statistical Package for Social Sciences (SPSS) to analyze data and the findings of the study were presented through the use of descriptive statistics and inferential statistics. On the first research objective, a total of the respondents who were in agreement were 91.7% agreed that the strategic sourcing has led to efficiency and effectiveness of organization. The findings on second research showed that a total of 87.8% of the respondents were in agreement that information technology is very helpful in the identification and acquisition of goods. The third research objective revealed that there is adequately supplier relationship a total 96.4% of the respondents. Besides, regarding the correlation analysis, the study revealed that there is a significant, strong and positive correlation between Strategic sourcing (r=0.993, p=0.000), information technology (r=0.987, p=0.00) and supplier relationship with the corporate performance. The multiple regression analysis revealed that the regression model was statistically significant since the p-value was less than 5% and the resulting R2=0.987 showed that the performance was due to the variations in the strategic procurement practices. The study recommends investigating in the Logistics management because the flow or movement of materials or money is usually triggered by associated information movement.
Keywords: Strategic Procurement Practices, Corporate Performance, Bralirwa, Rwanda.
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