Procurement Practices and Supply Chain Performance Among Manufacturing Firms in Kampala

Abstract

This study investigates the relationship between procurement practices and supply chain performance among manufacturing firms in Kampala, Uganda. Motivated by the operational challenges faced by the manufacturing sector, the study focuses on three key procurement practices: purchasing risk-taking, purchasing knowledge and skills, and strategic purchasing. The Resource-Based View (RBV) theory serves as the conceptual foundation, positioning procurement as a strategic internal resource capable of enhancing organizational performance. A cross-sectional, quantitative research design was employed, and data were collected from 327 manufacturing firms using stratified random sampling. Analysis was conducted using correlation and multiple regression techniques. Results indicate that both strategic purchasing and purchasing risk-taking are significant and positive predictors of supply chain performance (β = 0.449 and β = 0.295, respectively), while purchasing knowledge and skills showed a negative but marginally insignificant effect (β = -0.085, p = 0.051). Together, the procurement practices explained 31.5% of the variance in supply chain performance (Adjusted R² = 0.315). These findings underscore the importance of integrating procurement within long-term business strategy and embracing innovative procurement behavior while ensuring continuous application of practical skills. The study recommends investment in procurement training, digital systems, and risk-responsive strategies to improve supply chain efficiency in Uganda’s manufacturing sector.