Assessment of the Effects of Buyer–Supplier Relationship on Performance of Procurement Functions in Tanzania

Abstract

This study investigates the impact of the buyer-supplier relationship on procurement performance at TANESCO-Arusha Region, The general objective of the study is to assess the effect of buyer-supplier relationship on procurement performance at TANESCO-Arusha Region, to determine the effect buyer-supplier communication on performance of procurement function in TANESCO-Arusha Region, to examine the effect of buyer-supplier commitment on performance of procurement function in TANESCO-Arusha Region, to determine the effect of buyer-supplier trust on performance of procurement function in TANESCO-Arusha Region. The study employed population of 190 and a sample size of 57. The research design used in this study was a descriptive research design and a Quantitative approach. Data were collected through self-administered questionnaires and supplemented by secondary sources. Data was analyzed through statistical analyses, including correlation and multiple regression using SPSS version 22. Results reveal a positive correlation between increased communication and enhanced procurement performance, emphasizing its significance in the Tanzanian context. Similarly, commitment and trust between organizations executing contracts are found to positively influence procurement performance. The study concludes that these factors significantly contribute to the efficiency of construction projects. Recommendations emphasize the importance of effective communication, trust-building, and commitment for government, public procuring organizations, and specifically TANESCO Arusha region. The findings suggest that a focus on these relationship management aspects can lead to better quality, reduced costs, and timely procurement. The study encourages future research to explore buyer-supplier relationship management further, particularly in the private sector and across diversevi geographical locations, to enhance generalizability and provide nuanced insights into specific factors influencing procurement performance