Effects of Buyer-Supplier Relationship on Procurement Performance of Selected Supermarkets, KISII, Kenya

Abstract

This study dealt with the effects of buyer-supplier relationship on procurement performance in supermarkets in Kisii County. The study concentrated on the following objectives; to establish the effect of trust on procurement performance, to establish the effect of commitment to suppliers on procurement performance, to establish the effect of cooperation on procurement performance and to establish the effect of communication on procurement performance. The study was informed by social exchange theory and agency theory. This study was conducted through a descriptive survey design. The study involved 30 supermarkets in Kisii County. This research project was guided by research questions based on the objectives, aforementioned. Literature related to this study was reviewed based on the variables; trust, commitment, cooperation and communication as factors deemed to influence procurement performance. Data was collected by use of structured questionnaires. Data was analyzed using descriptive statistical techniques, which included frequency, percentage and tables. From the research findings, it can be concluded that trust, commitment, cooperation and communication influence procurement performance. The following recommendations were made: it is important for organizations to employ the above four elements. This will enhance integrity, credibility trustworthiness and bring satisfaction to both parties.