Abstract:
Abstract
Purpose – The purpose of this study was to establish the cause-effect relationship between determinants of
trust in the buyer–supplier integration and the procurement performance of large manufacturing firms in
Tanzania.
Design/methodology/approach – The study surveyed 52 firms from Temeke Municipality, Tanzania
using questionnaire subjected to one procurement manager and one stores manager tallying a sample size of
104 respondents. Explanatory design was employed due to the presence of cause–effect relationship and the
null hypotheses were tested using binary logistic regression technique at p values < 0.05 and ExpB > 1.
Findings – Mutual goals, geographical vicinity among partners, and supplier reliability are significant for
the procurement performance of the manufacturing firms in Tanzania, whereas interpersonal and interorganizational trusts and perceived buyers’ confidence are of no significant impact.
Research limitations/implications – Buyer–supplier integration is a recently embraced and
paramount practice for the manufacturing firms in Tanzania. Therefore, longitudinal study would further add
value. The presence of the causality from the tested hypothesis appeals for the necessity of progress tracking.
Practical implications – Causality has been established, and a framework has been developed for the
performance of large manufacturing firms using trust of buyer–supplier integration.
Social implications – There shall be creation of more employment opportunities and timely availability
of materials from large manufacturing firms in Tanzania.
Originality/value – Anchored on transaction cost economics and resource dependency theories, the study
disclosed the root cause of procurement performance in the context of manufacturing firms in Tanzania
whilst considering trust as a resource advantage of buyer–supplier integration.
