Factors Affecting Procurement Performance In Construction Sector: The Case Of Yotek Construction Private Limited Company

Abstract

Procurement is core activity that has implications on the efficient and effective operation of an organization, however, internal and external forces are influencing the ability to recognize the procurement goal of the firm. Keeping this in mind this study was aimed to identify factors affecting procurement performance of the Yotek construction P.L.C. The study employed a descriptive and explanatory research design. Primary data was collected by using questionnaires and interview targeting employees in the procurement and logistics department. A census survey was done and the study achieved 85% response rate since forty (40) out of the 47 questionnaires administered were filled and returned. The study population comprised of the whole staffs of YOTEK under procurement and logistics unit. The study findings revealed that factors coming from requesting/program unit, organizational structure and procurement unit implementing factors are the major and staff competency & level of professionalism were the least internal factors affecting the performance of the YOTEK procurement respectively. On the other hand, market environment of the country is the major external factors while, socio economic & political environment of the country were the least external factors affecting the performance of YOTEK procurement. Regarding to the determinant factors of procurement performance, supply chain integration & top management support were the major determining factors with significant level P <0.005 and procurement planning & information communication technology were the least determining factors of procurement performance with insignificant level P>0.005 respectively. However, all those independent variables have positive relationship with procurement performance. The study recommends that, in order to avoid the major challenging factors coming from users/requesting units the procurement unit should invest on staff awareness through training to achieve superior knowledge in entire procurement process. Particularly the organization should try to find some sorts of linkage with supply chain partners of the organization with the support of modern information communication technology.