Senior management's influence on supplier selection and procurement performance

Abstract

This thesis investigates the influence of senior management on the supplier selection process and its impact on procurement performance. Senior management's role in shaping procurement practices is critical, as their support and strategic direction significantly affect the efficiency and effectiveness of supplier selection. The study explores how managerial commitment moderates the relationship between supplier selection and procurement performance. The research employs a comprehensive analysis based on data collected from 185 respondents, including operations managers, procurement officers, risk managers, supply chain managers, and warehouse managers from manufacturing companies in Ghana. Using Exploratory Factor Analysis (EFA) and descriptive statistics, the study examines various dimensions of supplier selection, senior management support, and procurement performance. Findings reveal that senior management's involvement positively influences procurement performance by emphasizing key criteria in supplier selection, such as financial status, quality systems, and delivery capabilities. Specifically, factors like supplier reputation, pricing, and geographic location were identified as critical for effective supplier selection. Senior management's support for procurement practices, including regular performance evaluations and sustainability assessments, was also found to significantly impact procurement outcomes. However, while senior management support enhances procurement performance, it does not moderate the relationship between supplier selection and performance. The results suggest that while strategic management and support are crucial, they operate independently of the supplier selection process in affecting procurement performance. This study provides valuable insights for organizations seeking to improve procurement practices by highlighting the importance of both strategic supplier selection and robust senior management support. Recommendations include enhancing senior management's role in procurement strategies and focusing on critical supplier performance criteria to optimize procurement outcomes.