Supplier Involvement and Organizational Performance Of Manufacturing Companies: A Case Study of Mukwano Industries, Kampala-Uganda
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Date
2019-07
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management.
Abstract
The study established the effect of supplier involvement on organisational performance in
Mukwano Industries, three specific objectives guided this study and these were; (i) to find out
the factors affecting supplier involvement in Mukwano Industries, (ii) to examine the level of
organizational performance in Mukwano Industries Ltd, and (iii) to establish the relationship
between supplier involvement and organizational performance in Mukwano Industries Ltd.
The study adopted and employed a descriptive survey design which determines and reports
the way things are. The researcher made use of descriptive research design using both
qualitative and quantitative approaches to data collection. The study used a research
population of 48 and a sample size of 41. The findings indicated that; the study confirmed
that Mukwano Industries has embraced the concept of supplier involvement as it had
incorporated most variables in their operations. Mukwano Industries built relationship with
its suppliers based on informing sharing, joint decision making and incentive alignment but
with most of the emphasis on incentive alignment. This revealed that the supplier
involvement was rated high at 2.90, the findings revealed that organizational performance
was rated satisfactory and this was indicated by the overall mean of 2.73 and this implies that
the Mukwano Industries do the work efficiently and effectively, the findings indicated a
positive significant relationship between buyer-supplier relationship and organizational
performance in Mukwano Industries, and this was indicated by the sig value of 0.00 1 which
was less than 0.05, this therefore implies that high supplier involvement increases the level of
organizational performance, and low supplier involvement reduces it. The researcher
concluded that; the linkage between buyer-supplier collaboration and performance is clear in
that when manufacturing firms align incentives, jointly make decisions and share
information, performance will improve in regard to customer satisfaction, supplier retention
and timely deliveries whereby supplier retention 2.86 was found to be the most practiced
activity in Mukwano Industries compared to customer satisfaction 2.60 and timely deliveries
2.73. The researcher concluded that Mukwano Industries focused mainly on supplier
retention compared to both customer satisfaction and timely deliveries. Also basing on the
findings, the researcher concluded that that highly satisfying supplier involvement contributes
to organizational performance in Mukwano Industries. The researcher recommended that;
Mukwano Industries should make sure that their suppliers are always free to share important
information that is of their interest, the researcher recommends that the suppliers should
provide them with sales forecasts for the products the company buys from them, still the
researcher recommends that the Mukwano Industries should always have joint investments
with their suppliers, and Mukwano Industries should make sure that they continue with the
purchasing arrangements with most of the suppliers.
Description
A Research Report Submitted to The College of Economics And
Management in Partial Fulfillment of The Requirement
For the Award of Bachelor’s Degree in Supply And
Procurement Management of Kampala
International University
Keywords
Supplier Involvement, Organizational Performance, Manufacturing Companies