Assessing The Effects of Procurement Risk Management Practices on Procurement Performance

Abstract

The purpose of the study is assess the effect of procurement risk management practices in the procurement performance at RUWASA. To realize the purpose, the specific objectives were:- to determine the effect of procurement risk identification on procurement performance at RUWASA; to find out the effect of procurement risk monitoring practices on procurement performance at RUWASA and to determine the effect of procurement risk mitigation practices on procurement performance at RUWASA. The study employed a mixed-quantitative and qualitative research design in which both primary and secondary data was collected via interview, questionnaires and documentary review. The pragmatism research paradigm which upholds the use of different approaches to understand a problem was adopted. The purposive sampling techniques was used to collect the data. The entire population of 70 respondents was studied through census inquiry. The collected data was analyzed through the descriptive statistics, factor analysis, content analysis and regression. In the first objective, the study revealed that procurement risk identification practice was found to have a positive effects on the procurement performance. In the second objective, the study revealed that effective procurement risk mitigation practice lead to effective and efficient procurement performance. In the last objective, the study noted that procurement risk monitoring has a positive effect on procurement performance. The study recommends that procurement management team need to consider these risks when intending to increase performance of procurement functions within the organization. Failure to identify these risks earlier reduces procurement performance in terms of delay in delivery and completion of projects; obtain goods, works and services of poor quality, cost overruns and customer dissatisfactions.