SUPPLIER SELECTION AND CONTRACT PERFORMANCE (A CASE OF MBALE DITRICT)
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2024-08-30
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ABSTRACT
The research was undertaken to investigate on effect of supplier selection and contract performance in Mbale district. It was guided by three objectives; to assess the effect of supplier compliance on contract performance in Mbale district, to assess the effect of risk management on contract performance in Mbale district, to determine the effect of financial sustainability on contract performance in Mbale district. The researcher used a sample size of 45 respondents and used questionnaires and interview guide to collect data and later the data was analyzed using the statistical package for social sciences (SPSS). Results of the first objective shows that supplier compliance positively (Beta=0.153) predicts the contract performance in Mbale district and effect is significant at p-value < 0.05 by 9.6%, Results of the second objective reveals that risk management on positively (Beta=0.224) predicts the contract performance in Mbale district and effect is significant at p-value < 0.05 by 7.7% while results of the third objective show financial sustainability (Beta=0.091) predicts and affects their contract performance in Mbale district. However, its effect is insignificant at p-value > 0.05 by 2.1%. It can be concluded that supplier compliance has a significant effect on contract performance in Mbale district, risk management has a significant effect on contract performance in Mbale district local government and lastly financial sustainability has a significant effect on contract performance in Mbale district local government. Mbale district should establish clear, detailed contract terms with specific performance metrics and expectations are crucial. Regular monitoring and auditing of supplier performance against these benchmarks can ensure adherence. Implementing a robust communication framework for addressing issues and providing feedback fosters transparency and accountability.