Buyer-Supplier Relationships and its Influence on the Procurement Performance: Insights from Empirical Analysis
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Date
2021-11-02
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Journal of Co-operative and Business Studies (JCBS)
Abstract
Procurement plays a key role in the economic and social development of nations since its emergence as a significant
driver of organisational performance. Procurement accounts for approximately 18.42% of the global Gross
Domestic Product (GDP) and 70% of organisational expenditures. Tanzania confronts challenges that have direct
impact on procurement performance, despite strong buyer-supplier relationships defined by trust, commitment, and
communication among big manufacturing firms. In this article we examined the link between trust, commitment, and
communication, as well as their impact on procurement performance to advance the argument on the influence of
the buyer-supplier relationship on procurement performance, a systematic qualitative synthesis utilising homothetic
content analysis is utilised to examine data. According to the findings of the study, trust serves as a motivator for
buyers and suppliers to focus on the long-term advantages of relationships, therefore improving performance
outcomes. Commitment is recognised as a major motivator in long-term relationships; hence, buyers and suppliers
should prioritise the virtue in order to obtain long-term competitive advantage and, as a result, procurement
performance. Moreover, communication is useful in establishing trust and commitment in buyer-supplier
relationships in order to ensure procurement performance
Description
Keywords
Procurement performance, Communication, Commitment, Trust & Buyer-supplier Relationship