Abstract:
Despite the efficacious communication
evident in the buyer-supplier integration, material
procurement performance in large manufacturing
firms of Tanzania remains a challenge. The Resources
Dependency and Transaction Cost Economics
Theories were used in this study to analyze the
influence of Early Supplier Involvement in design of
specification, electronic information sharing,
communication direction, and frequency of buyersupplier meetings, (all considered key in enhancing
communication in the buyer-supplier integration) on
the procurement performance. 52 large
manufacturing firms in Temeke Municipality were
approached through a census to inform the study.
From each firm, one procurement and one store
manager were purposively sampled, totalling to 104
respondents. Data was collected using cross-sectional
design and mixed approach under pragmatic
paradigm was used for this study. Data obtained
through questionnaires was analyzed using the
Binary logistic regression. This study was
supplemented by qualitative opinions stemming from
the fact that buyer-supplier integration is a strategic
aspect. The study revealed that poor procurement
performance is attributed to lack of Early Supplier
Involvement and limited electronic information
sharing. It was recommended as per findings that
with the assistance of the government, the
performance of manufacturing firms can be
rejuvenated using the framework developed from this
study. This study unveiled the cause–effect
relationship of communication in the buyer-supplier
integration and procurement performance however,
the mediating role of third-party logistics, which
might affect the relationship, remains unknown. Also,
the role of communication of buyer-supplier
relationship was not considered as role of tiers
suppliers. Therefore, future studies should identify
the role of tier suppliers in buyer-supplier
communication and consequently the supply chain
firms’ performance.
