Volume 12, Issue 11

Investigating How Procurement Strategies Influence the Performance of Small and Medium-Sized Enterprises (SMEs)

Author

PETER Fred Ojochide1, PETER Adeshola Oluwaseyi2.

Abstract

This study explores the impact that procurement methods have on small and medium-sized enterprises (SMEs), particularly those in the manufacturing industry. In this industry, achieving higher levels of competitiveness and long-term sustainability requires efficient procurement management. The study carefully examines the complex relationship between SME performance and their procurement methods using a regression-based methodology. Quantitative information is methodically collected using carefully designed questionnaires, with an emphasis on important areas including information technology integration, supplier selection, and ethical purchasing. The study's conclusions highlight how different procurement strategies have a significant impact on SMEs' performance and highlight how important they are to raising service standards. Specifically, the study shows information technology as a vital factor contributing to enhanced service quality, demonstrating a statistically significant and favorable association. Furthermore, it has been discovered that a business's efficiency can be significantly impacted by the proper selection of suppliers. This study provides SME managers with insightful recommendations in light of these findings. They are urged to make strategic investments in information technology, which can improve data management, automate procedures, improve communication, and streamline operations, all of which can result in higher service quality and productivity. SME managers should also place a high priority on establishing and maintaining strong relationships with dependable suppliers who offer premium materials and components, given the critical relevance of supplier selection. This will have a direct impact on the final product's overall quality. Managers should give ethical issues top priority while making purchases in order to promote a responsible and ethical image.

DOI

https://doi.org/10.62226/ijarst20231120

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