Abstract

The purpose of this study was to examine the effect of procurement performance on the profitability of Foam Mattress Firms in Uganda. Cross-sectional research design was used to execute the study. Stratified and simple random sampling techniques were employed to draw a sample size of 40 Departments whose inventory, supply chain, production, marketing, internal audit and accounting department formed the unit of analysis while inventory managers, store keepers, supply chain managers, quality controllers, production managers, accountants, and internal auditors formed the unit of inquiry. Questionnaires were self-administered to 200 respondents. The units of analysis (Departments) were each represented by five (5) respondents. The responses were aggregated to the respective units of analysis (Departments). Correlation and regression statistical analysis were performed by SPSS. The findings revealed that procurement performance is positive and significantly associated to profitability (r=0.857; p<0.01). Overall, the results indicate that procurement performance greatly influences profitability in Foam Mattress Manufacturing Firms in Uganda. The study was cross-sectional with its intrinsic weaknesses. This study was limited to Foam Mattress Manufacturing Firms sector in Uganda. Future study should examine the same in line with other private sector industries. Moreover, the findings were drawn from the study within the setting of Uganda, thus future study should examine the same in different countries. Key words: Procurement, performance, procurement performance, profitability.

Highlights

  • Improving profitability demands that firms should be raised to a high level of performance (CPA Australia, 2011)

  • This finding is in line with Van Weele (2010), Lysons and Farrington (2006), Juma (2010), Shalle et al (2014) and Walter et al (2015) suggesting that as right practices in procurement function are put in place, there is a likelihood that quality conformance, risk management, cost effectiveness, supplier delivery accuracy and uninterrupted inventory flow will be achieved; as Foam Mattress Manufacturing firms in Uganda aim to ensure that they attains success, they become effective in implementing best procurement performance practices and success is realized

  • The study assessed the effect of procurement performance on profitability of Foam Mattress Manufacturing Firms in Uganda

Read more

Summary

Introduction

Improving profitability demands that firms should be raised to a high level of performance (CPA Australia, 2011). This is because profitability is an essential driver of the future of all firms (CPA Australia, 2011). Profitability is key to the achievement of firm’s objectives, and most importantly aids the firm to focus on growth strategies to attain these objectives (Margaretha and Supartika, 2016; Khan, 2017). This can be ascertained through the assessment of return on assets (ROA), return on sales

Objectives
Methods
Results
Discussion
Conclusion

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.