Strategic sourcing and organizational performance
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Date
2026-04-21
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Uganda Christian University
Abstract
This research examined the effect of strategic sourcing on performance in the organization at
Public Procurement and Disposal of Public Assets Authority (PPDA). The three dimensions that
the study looked at in relation to their impact on major performance indicators are cost reduction,
an operational efficiency, and service quality. It used a descriptive research design and quantitative
approach, where 24 employees of the PPDA were sampled using self-administered questionnaires.
The research used purposive sampling to identify the respondents, who possess a related
knowledge and experience in procurement and sourcing activities. Descriptive statistics and
Pearson correlation were used to analyze data to establish relationships between strategic sourcing
practices and organizational performance. The results of the study indicated that strategic sourcing
had a positive impact on organizational performance, and supplier relationship management was
the most important predictor of efficiency and service delivery. There was a positive relationship
between cost management and risk management and performance, but no statistically significant
direct impact. Descriptive findings revealed that effective procurement procedures, punctuality of
procurement operations, cost-management and joint cooperation with suppliers were perceived to
improve organizational performance. Correlation analysis also observed that strong supplier
relationships were also a significant factor in achieving better performance outcomes whereas cost
and risk practices were supportive, but not significant. The research has come up with the
conclusion that strategic sourcing practices are crucial to improving organizational performance
and especially the establishment and sustenance of good relationships with suppliers. Some of the
recommendations involved strengthening the relations with suppliers and adopting sound cost
management systems and structured risk management strategies. It was also proposed in the study
that future studies could be extended to other government agencies and examine how new
technologies can be used in strategic sourcing in order to bring more information on how
organizational performance can be enhanced.
Description
Undergraduate Research