STRATEGIC PROCUREMENT PRACTICES AND ORGANIZATIONAL PERFORMANCE: A STUDY OF MANUFACTURING FIRMS IN LAGOS STATE, NIGERIA
AbstractThe Nigerian manufacturing sector faces structural and operational challenges due to recent macroeconomic reforms, including petroleum subsidy removal, foreign exchange rate unification, and minimum wage increase, leading to cost-push inflation, reduced consumer purchasing power, and increased competition. This study investigates the impact of strategic procurement practices on the performance of manufacturing firms in Nigeria. Employing a mixed-method research design, the study integrates both quantitative and qualitative approaches to leverage their respective strengths. A sample size of 250 respondents was determined using Taro Yamane's formula, and purposive sampling techniques were employed to select participants from ten manufacturing companies situated in Ilupeju and Ogba Industrial Estates, Lagos State. Data were collected using structured questionnaires and analyzed through descriptive statistics and regression modelling to assess the relationship between strategic procurement practices and manufacturing firm performance. The findings reveal that for every unit increase in strategic procurement practices, the performance of manufacturing firms improves by 0.168 units, underscoring the significant role of strategic procurement in enhancing operational efficiency, cost reduction, product quality, competitiveness, and profitability. The study recommends that manufacturing firms adopt advanced strategic procurement practices, including e-procurement, e-sourcing, e-auctions, advanced analytics, predictive technologies, and blockchain systems to monitor market trends effectively. Furthermore, firms should implement agile procurement strategies and reverse logistics systems to facilitate cost recovery through the return, reuse, and recycling of materials and products. |
Keywords
Full Text:
References
Ahmed, S., Annear, P. L., Phonvisay, B., Phommavong, C., de Oliveira Cruz, V., Hammerich, A., & Jacobs, B. (2013). Institutional design and organizational practice for universal coverage in lesser-developed countries: challenges facing the Lao PDR. Social science & medicine, 96, 250-257.
Akubuko, G. C., Obodo, N. A., Musa, A. A., & Jimoh, A. (2019). A Re-appraisal of Procurement Management Practices and Vendor Performance: A Case of Oil Producing Firms in Rivers State. International Journal of Advanced Academic Research| Social and Management Sciences, 5(11), 72-88.
Alege, E. (2018). Procurement Strategies in Nigerian Ceramics Manufacturing (Doctoral dissertation, Walden University).
Alexander, A., Walker, H., & Naim, M. (2014). Decision theory in sustainable supply chain management: a literature review. Supply Chain Management: An International Journal, 19(5/6), 504-522.
Alok, V. N. (2023). Fiscal Federalism and Subnational Finance in India after the 2008 Financial Crises and Covid-19 Pandemic. Revista" Cuadernos Manuel Giménez Abad", (9), 98-126.
Aminu, A., Ibrahim, Y. M., Ibrahim, A. D., Bala, K., Abdullahi, B., Abdullahi, M., Ahmadu, H.A. & Yamusa, M.A. (2020). Developing conceptual process models for the Nigerian manual based procurement process towards digitization. Confluence of Research, Theory and Practice in the Built Environment, 590.
Ashkenas, R., Ulrich, D., Jick, T., & Kerr, S. (2015). The boundaryless organization: Breaking the chains of organizational structure. John Wiley & Sons.
Ayman, R., & Lauritsen, M. (2018). Contingencies, context, situation, and leadership. The nature of leadership, 138-166.
Azambuja, M. M., Ponticelli, S., & O’Brien, W. J. (2014). Strategic procurement practices for the industrial supply chain. Journal of Construction Engineering and Management, 140(7), 06014005.
Effa, G. A., Ovharhe, O. H., Ezirim, A. C., & Igwe, S. (2023). Strategic procurement initiatives and logistics performance in Nigeria. International Journal of Marketing and Communication Studies, 7(1), 38-55.
Effiong, U. E., & Udofia, M. A. (2022). The Kaldorian Perspective to Economic Growth in Nigeria: Does Globalization Really Matter? Asian Research Journal of Current Science, 253-268.
Graetz, F., & Smith, A. C. (2010). Managing organizational change: A philosophies of change approach. Journal of change management, 10(2), 135-154.
Hong, P., & Kwon, H. B. (2012). Emerging issues of procurement management: a review and prospect. International Journal of Procurement Management 4, 5(4), 452-469.
Kabiru, A. A., Emmanuel, O. G., & Abimbola, A. S. (2023). Effects of Company Income Tax and Capital Gains Tax on the Financial Performance of Small and Medium-Sized Businesses in Nigeria. MJSS, 3(1), 73-94.
Lysons, K., & Farrington, B. (2020). Procurement and supply chain management. Pearson UK.
Masheti, C. (2016). E-procurement practices and operational performance of pharmaceutical manufacturing firms in Nairobi (Doctoral dissertation, University of Nairobi).
Masiko, D. M. (2013). Strategic procurement practices and procurement performance among commercial banks in Kenya (Doctoral dissertation, University of Nairobi).
Mebrate, Y., & Shumet, K. (2024). Assessing the impact of procurement practice on organizational performance. Cogent Business & Management, 11(1), 2315687.
Mena, C., Van Hoek, R., & Christopher, M. (2018). Leading procurement strategy: driving value through the supply chain. Kogan Page Publishers.
Muswere, E. T. (2020). An assessment on the impact of strategic procurement practices on organisational performance. A case study of CBZ Bank (Doctoral dissertation, Chinhoyi University of Technology Zimbabwe).
Muwolya, D. A. (2019). The impact of strategic procurement planning on organizational performance: A case study of Kampala International University. Bachelor's degree project, Kampala International University Uganda
Mwangi, C. N. (2018). Contract management strategies in public procurement (Master's thesis, Høgskolen i Molde-Vitenskapelig høgskole i logistikk).
Oduro, S., Nyarku, K. M., & Gbadeyan, R. A. (2020). Supplier relationship management and organizational performance of hospitals in an emerging economy context: A comparative study. Journal of Modelling in Management, 15(4), 1451-1478.
Ogeto, E. O., & Thiong'o, S. M. (2020). Strategic procurement practices and organizational performance in the construction industry in Kenya: A case study of Allied Plumber Ltd. Journal of Strategic Management, 4(3), 69-79.
Oluwaseyi, S. (2016). Firm Strategy, Implementation and Organization Performance at Equity Bank, Kenya (Doctoral dissertation, University of Nairobi).
Otovwe, E. (2023). The implication of public debt and financial instability on economic growth: A case study of selected West African countries (Doctoral dissertation, Anglia Ruskin Research Online (ARRO)).
Owiti, J. O. (2022). Effectiveness Of Construction Contract Procurement Processes In Public Projects In Kenya: A Survey of County Government Projects (Doctoral dissertation, JKUAT-SABS).
Panda, B., & Leepsa, N. M. (2017). Agency theory: Review of theory and evidence on problems and perspectives. Indian journal of corporate governance, 10(1), 74-95.
Shah, S., & Hasan, S. (2016). Procurement practices in project based manufacturing environments. In MATEC Web of Conferences (Vol. 76, p. 02007). EDP Sciences.
Shala, B., Prebreza, A., & Ramosaj, B. (2021). The contingency theory of management as a factor of acknowledging the leaders-managers of our time study case: The practice of the contingency theory in the company Avrios. Open Access Library Journal, 8(9), 1-20.
Sobhani, M., Malarvizhi, C. A., Al-Mamun, A., & Jeyashree, S. (2014). Strategic procurement and financial performance of Iranian manufacturing companies. Asian Social Science, 10(1), 250.
Van de Ven, A. H., Ganco, M., & Hinings, C. R. (2013). Returning to the frontier of contingency theory of organizational and institutional designs. Academy of Management Annals, 7(1), 393-440.
Wambura, J. J. (2014). Harnessing economic growth in Africa: opportunities and challenges in the 21st century, 2000–2012 (Doctoral dissertation, University of Nairobi).
Whipple, J. M., & Roh, J. (2010). Agency theory and quality fade in buyer‐supplier relationships. The International Journal of Logistics Management, 21(3), 338-352.
Adolph, R. (2016). 済無No Title No Title No Title. 5(1), 1–23.
Dhofier, Z. (1982). Tradisi pesantren: Studi tentang pandangan hidup kyai. Lembaga Penelitian, Pendidikan, dan Penerangan Ekonomi dan Sosial.
HANIFAH, N. (2022). Penggunaan Media Pembelajaran Berbasis Aplikasi Canva Dalam Meningkatkan Hasil Belajar Kimia. EDUTECH : Jurnal Inovasi Pendidikan Berbantuan Teknologi, 2(2), 226–233. https://doi.org/10.51878/edutech.v2i2.1339
Kasdi, A. (2016). Filantropi Islam Untuk Pemberdayaan Ekonomi Umat (Model Pemberdayaan ZISWAF di BMT Se-Kabupaten Demak). IQTISHADIA Jurnal Kajian Ekonomi Dan Bisnis Islam, 9(2), 227. https://doi.org/10.21043/iqtishadia.v9i2.1729
Maeyangsari, D. (2023). Ekonomi Biru sebagai Upaya Pembangunan Berkelanjutan dan Pemenuhan Hak Asasi Manusia. Perspektif Hukum, 23(1), 106–126. https://perspektif-hukum.hangtuah.ac.id/index.php/jurnal/article/view/172
Monoarfa. (2021). Pengembangan Media Pembelajaran Canva dalam Meningkatkan Kompetensi Guru. Seminar Nasional Hasil Pengabdian, 1–7.
Prasetyaningrum, N., Suyanto, & Ramadhan, D. M. (2021). Interaksi Sosial Antar Pedagang Barang Antik di Galeri Industri Kreatif Kota Lama Semarang Nurfaizah. 16, 66–87.
Rizanta, G. A., & Arsanti, M. (2022). Pemanfaatan Aplikasi Canva sebagai Media Pembelajaran Masa Kini. Prosiding Seminar Nasional Daring, 2, 560–568. https://prosiding.ikippgribojonegoro.ac.id/index.php/SPBSI/article/view/1381
Safitri, A. O., Yunianti, V. D., & Rostika, D. (2022). Upaya Peningkatan Pendidikan Berkualitas di Indonesia: Analisis Pencapaian Sustainable Development Goals (SDGs). Jurnal Basicedu, 6(4), 7096–7106. https://doi.org/10.31004/basicedu.v6i4.3296
Syariah, K. (2018). No Title. 19(1), 16–34.
| 10.33650/ijed.v3i2.11126 |
|
Refbacks
- There are currently no refbacks.
Copyright (c) 2025 John Edewor Oputa
