ACCRA TECHNICAL UNIVERSITY

EFFECT OF RELATIONSHIP BETWEEN BUYER-SUPPLIER

RELATIONSHIP ON PROCUREMENT PERFORMANCE IN GHANA: A
CASE STUDY OF KINAPHARMA COMPANY LIMITED
By

CHARLES WILLIAMS
(01193238D)
ASEM MARTHINA BIANKIE
(01193209D)

RESEARCH PROJECT REPORT Submitted to the

DEPARTMENT OF PROCUREMENT AND SUPPLY CHAIN

MANAGEMENT

FACULTY OF BUSINESS

In Partial Fulfilment of the Requirements for the

AWARD OF HIGHER NATIONAL DIPLOMA (HND)

In

PURCHASING AND SUPPLY

OCTOBER 2022
 DECLARATION BY STUDENT(S)
This research project is submitted as part of fulfilment for the award of a Higher National
Diploma in Purchasing and Supply: The work is a result of our investigation. All section of the
text and results, which have been obtained from other works/sources, are fully referenced. We
understand that cheating and plagiarism constitute a breach of Accra Technical University and
will be dealt with accordingly.

NAME SIGNATURE DATE

CHARLES WILLIAMS ……………… ………………
(CANDIDATE)

ASEM MARTHINA BIANKIE ……………… ………………

(CANDIDATE)

KUMASSAH. SAMEAL ................... .................

(CANDIDATE)

DECLARATION BY SUPERVISOR
I hereby confirm that the above students are HND students in the Department of Procurement
And Supply Chain Management under my academic and research supervision in accordance to
the requirements in Accra Technical University. The students are currently in their final year of
study and they are expected to complete in 2022.

NAME SIGNATURE DATE

(SIR CHARLES MENSAH) ……………… ………………

i
 DEDICATION
We dedicate this book to the Most High God, our lovely parents, our siblings, our friends and all
our lecturers for their support assistance throughout our training.

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 ACKNOWLEDGEMENTS
We will take this opportunity to show our gratitude to everyone who made this project a success.
However, it will not have been possible without the kind support and help of our classroom
colleagues. We would like to extend our sincere thanks to all of them. We are highly indebted to
our Sir Charles Mensah, and Dr. Musah O. Doumbia, for their guidance and constant supervision
providing necessary information regarding the project and their support in completion. We will
like to express our gratitude towards our moms for their kind cooperation and encouragement,
which helped in the completion of this project.

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 ABSTRACT
In the Greater Accra region of Ghana, we investigated how the relationship between buyers and
sellers affects the procurement performance of Kinapharma Company Limited. Numerous
studies have been conducted on buyer-supplier interactions based on four factors: trust,
engagement, communication and collaboration. However, these studies did not examine how
these associations affected effectiveness of the procurement process. The specific objective were
(i) To determine the effect of trust on the private sector's procurement performance, (ii) To
ascertain how supplier communication affects the performance of procurement., (iii) To evaluate
the effect of suppliers' commitment on the performance of procurement., and (iv) To identify the
effect of cooperation on the performance of procurement. Finding out how trust influences
procurement performance in government tertiary training institutions was the goal of the study
questions. Kinapharma Company Limited (KCL) will gain from the study by being inspired to
develop buyer-supplier relationships. A review of the literature revealed that formal supplier
assessment communication affected BSR favorably. The study's design was a descriptive
approach. A questionnaire was utilized as the data-collecting tool in this study, which employed
purposive sampling. Pie charts and frequency distribution tables were used to display the results
of the quantitative and qualitative analysis of the data. The results demonstrated that all research
factors had a favorable impact on procurement performance. According to the study's findings, a
strong buyer-supplier relationship requires collaboration, dedication, and trust. The report also
suggested that this research be repeated in several regional business sectors.

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 TABLE OF CONTENTS
CONTENTS PAGES
DECLARATION BY STUDENT(S).........................................................................................i
DECLARATION BY SUPERVISOR.......................................................................................i
DEDICATION...........................................................................................................................ii
ACKNOWLEDGEMENTS.....................................................................................................iii
ABSTRACT...............................................................................................................................iv
TABLE OF CONTENTS...........................................................................................................v
LIST OF FIGURES................................................................................................................viii
LIST OF TABLES....................................................................................................................ix
CHAPTER ONE............................................................................................................................1
INTRODUCTION......................................................................................................................1
1.1 BACKGROUND OF THE STUDY...................................................................................................1
1.2 STATEMENT OF THE PROBLEM..................................................................................................2
1.2.1 Research Questions...................................................................................................................3
1.3 OBJECTIVES OF THE STUDY........................................................................................................3
1.3.1 General Objective.....................................................................................................................3
1.3.2 Specific Objectives...................................................................................................................3
1.5 SIGNIFICANCE OF THE STUDY....................................................................................................4
1.6 SCOPE OF THE STUDY...................................................................................................................4
1.7 LIMITATIONS OF THE STUDY......................................................................................................4
1.8 ORGANIZATION OF THE STUDY.................................................................................................5
CHAPTER TWO...........................................................................................................................6
LITERATURE REVIEW..........................................................................................................6
2.0 INTRODUCTION..............................................................................................................................6
2.1 REVIEW OF THEORETICAL LITERATURE.................................................................................6
2.1.1 Agency Theory..........................................................................................................................6
2.1.2 Social Exchange Theory...........................................................................................................6
2.2 REVIEW OF KEY RELATIONSHIP MODELS...............................................................................7
2.2.1 Mohr and Spekman (2018).......................................................................................................8
2.2.2 Wilson (2018)...........................................................................................................................8
2.3 LITERATURE GAPS.........................................................................................................................8
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 2.3.1 Effect of Trust on the Performance of Procurement.................................................................8
2.3.2 Effect of Commitment to Suppliers on the Performance of Procurement................................9
2.3.3 Effect of Communication on the Performance of Procurement..............................................10
2.3.4 Effect of Cooperation on the Performance of Procurement....................................................10
2.4 CRITIQUE AND GAP.....................................................................................................................11
2.5 CONCEPTUAL FRAMEWORK.....................................................................................................12
2.5.1 Procurement Performance.......................................................................................................12
2.5.2 Trust........................................................................................................................................13
2.5.3 Communication.......................................................................................................................13
2.5.4 Commitment...........................................................................................................................13
2.5.5 Cooperation.............................................................................................................................14
CHAPTER THREE.....................................................................................................................15
RESEARCH METHODOLOGY...........................................................................................15
3.0 INTRODUCTION............................................................................................................................15
3.1 STUDY DESIGN..............................................................................................................................15
3.2 POPULATION OF THE STUDY....................................................................................................15
3.3 SAMPLE DESIGN...........................................................................................................................15
3.4 SAMPLE SIZE AND SAMPLING FRAME...................................................................................16
3.5 DATA COLLECTION PROCEDURES/INSTRUMENTS.............................................................16
3.6 DATA ANALYSIS AND PRESENTATION..................................................................................16
CHAPTER FOUR.......................................................................................................................17
RESULTS AND DISCUSSIONS............................................................................................17
4.1 INTRODUCTION............................................................................................................................17
4.2 TIME SPENT IN THE ORGANIZATION......................................................................................17
4.2.1 Position in the Organization....................................................................................................17
4.3 GENDER OF RESPONDENTS.......................................................................................................18
4.3.1 Effect of Trust on the Performance of Procurement...............................................................19
4.3.2 Effect of Communication on the Performance of Procurement..............................................19
4.3.3 Effect of Cooperation on the Performance of Procurement....................................................20
4.3.4 Effect of Commitment on the Performance of Procurement..................................................20
4.3.5 Effects of Buyer-supplier on the Performance of Procurement..............................................21
CHAPTER FIVE.........................................................................................................................22
SUMMARY, CONCULSIONS AND RECOMMENDATIONS.........................................22

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5.0 INTRODUCTION............................................................................................................................22
5.1 SUMMARY OF FINDINGS............................................................................................................22
5.2 CONCLUSIONS...............................................................................................................................23
5.3 RECOMMENDATIONS..................................................................................................................23
5.3.1 Suggestions for Further Study................................................................................................23
REFERENCES.........................................................................................................................25

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 LIST OF FIGURES
Figure 1: Gender of Respondents..................................................................................................18

viii
 LIST OF TABLES
Table 1: Rate of Response.............................................................................................................17
Table 2: Work experience of the respondents...............................................................................17
Table 3: Position in the Organization............................................................................................18
Table 4: Effect of Trust on Procurement Performance..................................................................19
Table 5: Effects of communication procurement performance.....................................................19
Table 6: Effect of Cooperation on procurement performance.......................................................20
Table 7: Effect of Commitment on Procurement Performance.....................................................20
Table 8: Effects of buyer-supplier on procurement performance..................................................21

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 CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
As a result, strategic partnerships between suppliers and buyers may have played a leading role
in the procurement process. As a result, customers now focus on retaining reliable suppliers. It is
very important for Kinapharma Limited to improve the relationship and consequently the
procurement process. Essential for the company as it ensures effective and timely delivery.
Kinapharma Limited is an important choice due to the significant financial investment in
providing special education. Strong partnerships between buyers and suppliers enable
Kinapharma Limited to achieve its goals. Numerous studies have been conducted in the field of
procurement performance. According to Vonderembse (2019) and Hsu (2017), suppliers play an
important role in building a competitive advantage, recognizing that their activities have a
significant impact on a company's performance. Research appreciates the strategic role of
suppliers in companies.
The supplier-buyer relationship is a cornerstone of modern economic activity and a key factor in
an organization's competitiveness, performance and long-term business success (Nagurney,
2010). (Veludo et al. 2017). Gadde and Hakansson (2021) argue that a firm's ability to manage
its supply side has a significant impact on both its competitiveness and its ability to generate
profits. Similarly, Griffith and Myers (2015) argue that managing supplier-buyer relationships is
a key factor in creating value for both customers and shareholders. This is especially true given
the increased usage of globalization and outsourcing tactics (Tang & Musa, 2011), which
organizations are utilizing by focusing on core skills and specialization in order to endure the
rigors of today's competitive marketplaces (Blome & Schoenherr, 2011).
According to Burt et al., the three primary buyer-supplier interactions are transactional,
collaborative, and alliances (2015). Transactional relationship are the most common and
essential type of buyer/supplier linkages. An arm's-length relationship is one in which neither
party is concerned about the well-being of the other. There is very little trust in this relationship
and the consumer and provider may only do business once. In this type of partnership, large
savings are rarely generated, and it generally requires very little time and effort from either party
to follow through on an agreement.

1
The whole organization must foster collaborative relationships. A buyer must have the authority
to negotiate with a supplier and reach a mutually beneficial deal. This is not achievable if
executives merely want to save money or if the workforce is hesitant to delegate some duty to
the provider. Lower overall costs, greater quality goods, shorter time to market owing to open
communication, and increased technology and innovation are all advantages of collaborative
cooperation. Supply interruptions are also less common since suppliers and purchasers have a
friendship-like connection and watch out for one another rather than looking for ways to take
advantage of one another. When a company has a certain amount of advantage over its suppliers,
or when the suppliers have all the power, the buyer may be unwilling to get into a collaborative
partnership.
The time and effort required are disadvantages. Instead of engaging in other value-adding
activities, buyers must devote their time on developing the relationship. Additionally, it will take
time to establish the connection and win the supplier's confidence. In addition, switching fees are
higher if there are issues with the provider. Finally yet importantly, there is the sharing of
confidential information, strategies, plans, and objectives. Most businesses are hesitant to share
this information with rival businesses because they worry about losing control. (Benton and co.
2015).
The third type of interaction between buyers and suppliers is the alliance relationship. To
strengthen communication between the two firms, a strategic alliance will be formed. Alliances,
as opposed to cooperative connections, are formed to foster a degree of trust that allows both
organizations to collaborate and assist one another in times of need and uncertainty. If there is no
incentive to control or trust a relationship, it will collapse. An alliance may be profitable due to
asset and human specialization. Human specialization allows specific individuals in businesses to
have knowledge that allows them to properly communicate with others as well as experience
working together. As a result, organizations are less likely to experience breakdowns that result
in errors (Burt et al., 2015).
1.2 STATEMENT OF THE PROBLEM
Businesses and academia are increasingly interested in the “buyer-supplier relationship”.
Companies are making great efforts to develop closer relationships with other companies in
order to gain a competitive advantage and strengthen their market position. Currently, little is
known about the processes that govern the development of partnerships, and the existence and
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dynamics of buyer-supplier interactions at various levels within firm relationships (Bart et al.
2015). Despite being, the most industrialized country in West Africa, Ghana has yet to reach its
full potential. Private institutions need to do more to enable them to perform better and
contribute more to the country's academic progress.
The success of a purchasing department or unit is greatly influenced by its suppliers. It is
therefore important to examine the extent to which this industry embraces the idea of buyer-
supplier relationships and how it affects sourcing performance. A scrutiny of studies on buyer-
supplier interactions and procurement performance can be shown to show that this area is being
explored. For example, in Bart and Ackerman (2015) conducted a study on collaboration in
buyer-supplier partnerships. The study concludes that engagement, conflict, financial and non-
financial satisfaction, and trust are the five key relationship factors for building and maintaining
successful buyer-supplier relationships. However, the impact of these collaborations on
procurement effectiveness was not explored in this study.
Cousins et al (2018) conducted another study on performance measurement in strategic buyer-
supplier partnerships. According to the study, supplier performance metrics alone are not enough
to improve performance outcomes. Instead, the extent of an organization's buyer-supplier
socialization process influences how performance indicators influence relationship outcomes. No
research has been conducted on the impact on the effectiveness of procurement in Ghana. This
study aims to fill this gap by identifying how buyer-supplier interactions affect procurement
performance.
1.2.1 Research Questions
1. How does trust affect private institution procurement performance?
2. How does supplier communication affect the performance of procurement?
3. How do supplier commitments affect the performance of procurement?
4. How do cooperation affect the performance of procurement?
1.3 OBJECTIVES OF THE STUDY
1.3.1 General Objective
The primary objective was to examine how relationships between buyers and suppliers affected
procurement effectiveness in private institutions in the Greater Accra region.
1.3.2 Specific Objectives
The following particular goals served as the study's direction:
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 1. To determine the effect of trust on the private sector's procurement performance.
2. To ascertain how supplier communication affects the performance of procurement.
3. To evaluate the effect of suppliers' commitment on the performance of procurement.
4. To identify the effect of cooperation on the performance of procurement.
1.5 SIGNIFICANCE OF THE STUDY
In the larger subject of supply chain, the interaction between a "buyer" and "supplier" is a crucial
topic of research. This study makes a modest attempt to answer the question of whether the
performance of Ghana's procurement processes is influenced by relationships between buyers
and suppliers. The following partners in the supply chain will find this study to be of utmost
significance: Supply chain managers will be able to choose the type of supplier-customer
relationships that their companies may embrace. Additionally, they will be able to determine
whether the performance of procurement is impacted by the connection between the buyer and
supplier. Students will be able to expand their knowledge of supplier-buyer interactions.
Additionally, other researchers will be able to come in and fill in the gaps that the original
researcher will have left. Additionally, they will be able to identify whether the different
companies' adopted buyer-supplier relationships have any bearing on the effectiveness of
procurement, and if there is a bad connection, they will be able to devise solutions to fix it. It is
also significant to mention that other academics will gain a lot from this study since it will serve
as a foundation for their research and a supply of research data, serving as an empirical
foundation for other studies in the field.
1.6 SCOPE OF THE STUDY
The implications of buyer-supplier relationships on the effectiveness of procurement in private
organizations within the Greater Accra Region were examined. The study focused on 174
employees from Kinapharma Limited's departments of procurement, administration, accounting,
finance, internal audit, information and communication, and academics. The research was carried
out from November 2021 to August 2022.
1.7 LIMITATIONS OF THE STUDY
A study task was never simple to complete. There are times when the researcher will run across
many issues that are fundamental and inescapable. This study project was not unique. Because
they feared being victimized, the respondents declined to complete the surveys. They needed to
be persuaded that the findings would be kept private and utilized solely for scholarly purposes. It
4
was challenging to get the responders to fill out the surveys since they were so busy. To get
around this, the researcher had to throw away the surveys and let the respondents fill them out at
their own leisure and convenience.
1.8 ORGANIZATION OF THE STUDY
There are five chapters in this work. The study's background, problem statement, objectives,
research questions, significance, limitations, and organizational structure are all covered in the
First Chapter.
The Second Chapter reviews the study-related literature, which included a theoretical literature,
critical literature, summary and gaps to be filled and the conceptual framework.
The study's research design, population, sample design, sample size and sampling frame, data
collection procedures/instrument and a data analysis and presentation was given in the Third
Chapter.
The study results and discussions was presented in the Fourth Chapter.
The study's summary of findings, conclusions, and recommendations was presented in the Fifth
Chapter.

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 CHAPTER TWO
LITERATURE REVIEW
2.0 INTRODUCTION
This chapter contains a conceptual framework, theoretical and critical literature, summaries, and
gaps that need to be addressed.
2.1 REVIEW OF THEORETICAL LITERATURE
Previous research has provided examples of several hypotheses that have been used to explain
the impact of buyer-supplier relationships on procurement performance. The Agency Theory and
Social Exchange Theory serve as the foundation for this investigation.
2.1.1 Agency Theory
Agency theory applies when one component (the principal) depends on another part (the agent)
to act on behalf of the primary. An agency perspective can shed light on the interactions between
different organizations (Lassar & Kerr 2016; Rossetti & Choi 2018). According to Eisenhardt
(2019), agency theory can be applied to supplier-customer relationships and situations involving
product innovation. Agency theory deals with principal-agent relationships that occur within or
between organizations, where the principal delegates tasks to agents. The main thing in this
article is the purchasing company, and the agent is the supplier. In agency theory, contracts
between principals and agents are considered in relation to two issues: the agency issue and the
risk-sharing issue.
The agency problem consists of two elements:
Goal and Validation Conflict (Eisenhardt). Risk sharing refers to the different perspectives of
risk between the principal and the agent. Although agency theory often emphasizes a principle
perspective (Aulakh & Gencturk 2017; Rijsdijk & Van den Ende 2011), some recent work
combines principal and agent perspectives (Dou et al. 2015; Van der Valk & Van Iwaarden
2011).
2.1.2 Social Exchange Theory
According to the social exchange hypothesis, evaluating options and conducting a personal cost-
benefit analysis can help people form partnerships. It is an exchange of activities of at least two
parties - tangible or intangible, more or less profitable or costly. A business network can be
viewed as a particular kind of exchange network according to social exchange theory

6
(Blakenburg & Johanson, 2022). Prenkert & Hallen (2017) describe it as a collection of related
trading interactions. This underscores the importance of his network of supplies within the
corporate network and is closely related to connecting with suppliers. The social exchange model
assumes that benefits and costs influence partner selection.
According to Eriksson (2021), the emphasis of such a system is more on the resource
transformation and exchanges and less on the social exchange component. Buyer-supplier
networks, sometimes referred to as supply networks, are most usually examined from this angle.
However, these connections are typically part of larger networks of linked buyer-supplier
connections, where market exchange transformation and resource exchange, as well as social
exchange perspectives of trust, cooperation, etc., should play equal roles. Nevertheless, there is
still a gap in the literature that prevents the study of buyer-supplier relationships from properly
balancing both of these perspectives.
Therefore, while supply chain management has had a limited focus on the exact determinants of
flexibility such as information optimization and inventory management, the marketing literature
to date has largely focused on satisfaction and loyalty. We have focused on the impact of trust
and engagement. Claro (2019) also emphasizes that buyer-supplier relationships, supply chains,
networks, and business relationships typically range from webs of connections to one-to-one
relationships where boundaries are often blurred.
2.2 REVIEW OF KEY RELATIONSHIP MODELS
Studies on buyer-seller interactions have been conducted by a number of writers, who have
produced a variety of outcomes on the subject. The studies that follow provide an overview of
the many relationship models that have been created concerning buyer-seller interactions.
One of the first researchers to examine the interactions between manufacturers and distributors
that are collaborating on a project was Anderson and Narus (2020). They define a working
partnership as "the extent to which there is mutual recognition and understanding that the success
of each firm depends in part on the other firm, with each firm taking subsequent actions so as to
provide a coordinated effort focused on jointly satisfying the requirements of the customer
marketplace".
Constructs and a model that were intended to apply to both the supplier and the buyer were
created and tested using interviews with managers and social theory as its base. The comparative
level of alternatives, relative dependency, and communication were shown to be significant in
7
understanding working relationships between manufacturers and distributors—despite the
necessity for re-specification in their suggested model. The addition of the hitherto
"understudied" dimensions of trust, collaboration, and satisfaction in models of channel working
relationships received a lot of favor. Understanding partner criteria and expectations for
marketing activity was crucial since these would be evaluated against results, which was a key
implication of their study (i.e. unit performance).
2.2.1 Mohr and Spekman (2018)
According to the Mohr and Spekman (2018) definition of partnership, partners must “seek
mutual benefit”, and this is the key distinction. Their findings showed that trust, commitment,
and communication were key factors in predicting partnership success. The higher the score for
these factors, the more likely the relationship (either satisfaction or sales) will be successful.
Satisfaction was an outcome variable based on the partner's perception of how well the
relationship met expectations. The lack of research distinguishing between successful and
unsuccessful partnerships has been a limiting factor in research to date. In fact, there are two
ways to measure the success of a partnership. Through perseverance or achieving common goals.
Results that lead to company performance are the greatest attraction for managers.
2.2.2 Wilson (2018)
Wilson (2018) hypothesized that the interaction between buyers and sellers goes through
multiple stages of growth. He suggested that certain connection factors become more or less
important at each stage. Choosing a partner and determining relationship goals are important
factors such as trust, fulfillment, power, and the ability to compare options. Commitment to
partnership was key when the goal was to create value and maintain relationships. It has also
been suggested that other structures play different roles in the relationship lifecycle. The
researcher suggested further research to better understand and conceptualize how buyers and
sellers work together to improve business relationships. We proposed additional research to
conceptualize how to evolve into a competitive network.
2.3 LITERATURE GAPS
2.3.1 Effect of Trust on the Performance of Procurement
To improve performance outcomes in buyer-supplier interactions, such as business
competitiveness and reduced transaction costs (Noordewier et al. 2020), trust is the long-term
benefit of the relationship between retail buyers and sellers. (Ganesan 2018). Morgan and Hunt
8
(2018) found that trust has the greatest impact on cooperation in relationships, while Doney and
Cannon (2021) suggested that trust affects long-term partnerships. . According to Anderson and
Weitz (2019), trust is essential to maintaining partnership integrity, including traditional channel
connections. Siguawe et al. (1998) also concluded that distributor trust is strongly and positively
associated with distributor satisfaction with the co-operative's norms and financial performance.
The literature has generally emphasized the beneficial role that trust plays in procurement
effectiveness.
The advantages of trust have been explored and described by several theories, including
relational exchange theory and transaction cost economics. Trust has economic worth, according
to transaction cost economics theory, since it decreases transaction costs, negotiation costs,
monitoring and monitoring expenses, and uncertainty in information flow, as well as acting as a
proxy for control. Dyer and Chu (2015) According to relationship exchange theory, trust is
essential to building and maintaining relationships. Organizational actors are more likely to share
the costs associated with scouting and exploiting new opportunities, transferring information and
expertise, and engaging in collaborative learning processes (Inkpen, 2021; Lado et al., 2018).
Operations management research shows that trust is a key indicator of successful supply chain
performance in terms of increased flexibility, responsiveness, and cost savings (Handfield and
Bechtel, 2020; Ireland and Webb, 2017; Laaksonen et al., 2015; Narasimhan and Nair, 2015).
Building partnerships between the various actors in the supply chain, differentiated between trust
between individuals and trust between companies, relies heavily on trust, which also contributes
to superior procurement performance (Johnston, McCutcheon , Stuart, and Kerwood, 2019).
Building trust between firms can be seen as influenced by a country's cultural environment (Dyer
and Chu, 2015; Sako, 2022; Zaheer and Zaheer, 2017).
2.3.2 Effect of Commitment to Suppliers on the Performance of Procurement
Buyer and supplier engagement leads to improved sourcing performance. Buyer and supplier
commitment results in a desire to develop a solid connection, a readiness to make temporary
compromises to sustain the relationship, faith in the partnership's stability, and investment in the
relationship (Gounaris, 2015). Shared engagement leads suppliers and buyers to believe that their
connection is essential and should be maintained in the near future, potentially improving
procurement processes (Stanko et al. 2017). Both sides should be willing to expend resources to
commit the relationship. Their ability to recognize and internalize the goals and values of others
9
allows them to create connections that improve the procurement effectiveness of their
organizations (Kwon, 2015).
To build long-term relationships and gain a sustainable competitive advantage, both buyers and
suppliers must demonstrate a high level of commitment. This improves procurement
performance (Gefen, 2017). Because successful planning is based on information exchanged
between partners, this is a key factor for successful integration and high procurement
performance, Stanley (2019) notes that supply engagement in his chain integration claims to be
an important issue. A high level of commitment and trust between his partners in the supply
chain is essential for a successful procurement process. Information sharing and engagement
between partners is the foundation of supply chain planning for successful supply chain
management. Studies show that lack of commitment between partners is the reason one-third of
strategic alliances fail.
2.3.3 Effect of Communication on the Performance of Procurement
Customer-supplier interactions rely heavily on effective communication. To improve
procurement performance, procurement professionals work with suppliers through various
channels such as phone, fax, face-to-face meetings, mail, email, web and electronic data
interchange (EDI) (Rodrigo , 2021). Improved channel member alignment, satisfaction,
engagement, and procurement performance can all be achieved through effective communication
(Goodman and Dion 2021). Frequent communication between retailers and suppliers facilitates
quick and accurate responses to fluctuating markets, reducing the cost and impact of incorrect
predictions in the fashion apparel sector. With trust and support, channel participants are more
likely to contribute information and facilitate two-way conversations. The result is better
matching of supply and demand and higher profitability for channel members. On the other hand,
when there is a power imbalance, the lower powered channel party tends to withhold information
and feedback from the higher-powered channel party. Restricted information flow therefore
hinders channel interaction and affects the effectiveness of the supply chain. Effective
communication is essential to maintaining long-term relationships with buyers and achieving
high sourcing performance.
2.3.4 Effect of Cooperation on the Performance of Procurement
Cooperation is essential for exchange partners to establish supply chain coordination. Retailers
are looking to their suppliers for greater delivery flexibility and responsiveness to meet the
10
highly unpredictable demands of a rapidly changing market. Research shows that working
together helps achieve common goals more effectively because stakeholders have a better
understanding of each other's expectations and requirements (Perreault, 2019). Collaborative
partners maintain longstanding connections and often improve output. With improved
procurement performance, collaboration is seen as essential to maintaining long-term
connections and enhancing business success (Liu and Wang, 2017). Cooperation between buyers
and sellers will be judged on their honesty, integrity, reliability and good reputation. Exchange
parties feel more confident in engaging in cooperative activities and avoid opportunistic behavior
once cooperation is established, which improves procurement performance (Cannon, 2019).
According to Maloni (2017), the degree of collaboration between retailers and suppliers
increases the influence of suppliers on retailers. Maintaining channel relationships is necessary to
achieve desired goals. Collaboration reflects the necessity and substitutability of the products and
services offered by the supplier and leads to success.
2.4 CRITIQUE AND GAP
The communication literature has significant gaps. First, it is uncertain how various types of
characteristics impact buyer-supplier relationships and sourcing performance. A review of
research on buyer-supplier interactions and procurement performance demonstrates that this
issue is being investigated. Bart and Akkermans (2015), for example, performed a research on
collaboration in buyer-supplier interactions. According to the study, in order to create and sustain
excellent buyer-supplier connections, he needs pay attention to the five relationship criteria listed
below:
 Commitment,
 Conflict,
 Financial satisfaction
 Non-financial satisfaction
 Trust.
However, the impact of these collaborations on procurement effectiveness was not explored in
this study. Plane and Green (2011) also conducted a survey of buyer-supplier collaboration and
procurement objectives in facility management. According to the survey, there is broad
consensus that a relational approach to procurement has a positive impact on the relationships

11
created. We also found that clear service requirements, value delivery, and cultural alignment are
perceived benefits of a relational approach. However, this study does not show how supplier-
buyer relationships affect the effectiveness of procurement processes. Mukhwana (2010)
addresses the impact of his supply chain management practices on business performance in a
study. The study found that supply chain management practices actually affect procurement
effectiveness. However, this study does not specifically address aspects of supply chain
management that affect procurement process performance. Although connectivity has not been
investigated experimentally, many studies have expressed hope for direct effects (Krause et al.,
2017). Third, research suggests that buyer-supplier relationships (BSR) can act as intermediaries
when there are indirect influences (Johnston & Lewin, 2016). A review of the literature shows
how much research has been done on buyer-supplier interactions. However, the impact of these
buyer-supplier relationships on procurement performance has received less attention. Therefore,
it is important to examine how buyer-supplier relationships affect sourcing effectiveness.
2.5 CONCEPTUAL FRAMEWORK
2.5.1 Procurement Performance
The degree to which the purchasing function achieves its goals with minimal sacrifice of
organizational resources can be considered purchasing performance. The Price/Cost dimension,
Product/Quality dimension, Logistics dimension, and Organization dimension are the four
dimensions that can be used for scoring and scoring purchase transactions. Procurement
performance plays an important role in supply chain management and can affect a company's
quality performance, product innovation, customer responsiveness, and financial performance
(Chen & Paulraj, 2019). Both internal and external customers appreciate the value of the
procurement process and will go out of business if their expectations are not met. Here, value
creation and delivery should be the focus of procurement, not process. Forging partnerships with
the right suppliers can be a strategy procurement departments can use to improve supply chain
efficiency and service to other departments, while increasing the company's competitiveness.
The impact of a buyer-supplier relationship strategy on the effectiveness of the procurement
process depends on how it benefits both parties. According to Janda et al. (2020) by treating
suppliers as allies and sharing strategic information, companies can improve lead times and
quality, increase operational flexibility, and achieve long-term cost savings. All of these help
these companies add value to their end customers. According to Chin-Chun (2018), a firm's
12
ability to engage suppliers and other partners in profitable value transfer is how cooperative
connections benefit them. In fact, Hunt (2017) saw connections as a resource and part of a
company's capital.
2.5.2 Trust
Trust is the ability of a company to rely on its partners for transactions it trusts (Moorman,
Zaltman, & Deshpande, 2022). Trust is what we expect from our business partners based on their
knowledge, reliability and integrity (Ganesan, 2018). Trust is essential to staying in touch and
building lasting relationships (Andersen & Kumar, 2017). Trust is defined as “the degree to
which a business feels its counterparties are genuine and charitable, or variations thereof.”
According to the definition of Moorman et al. From 2022 onwards, Trust will consist of two
elements:
Reliable and good. Good faith reflects the extent to which the customer believes the supplier's
intentions and motives are beneficial to the customer, while reliability reflects the customer's
belief that the supplier has sufficient expertise. To perform work effectively and reliably
(Ganesan, 2018). An interesting look at trust is that long-term partnerships can be built based on
the need of the supplier or distributor rather than the need for trust (Kumar, 2015). Trust can be
important at all stages of a relationship, but it can only be measured if the relationship has been
long enough for partners to appreciate this aspect. As well as gaining trust and measurable
importance. The last two phases of relationship building increased trust-building and measurable
importance, as did performance satisfaction.
2.5.3 Communication
Much of organizational behavior is based on communication practices that are critical to success
(Mohr & Nevin, 2020). Relationship research shows that her three components of
communicative behavior (quality of communication, level of information sharing between
partners, and involvement in planning and goal setting) are critical for a healthy partnership.
Information exchanged must be accurate, timely, relevant and reliable for communication to be
effective. The degree of cooperation between partners during goal setting and planning is called
participation. The need to participate in defining roles, responsibilities, and expectations
increases when one partner's actions interfere with the other's ability to compete effectively.
Involvement in decision-making and goal setting are key components of a successful partnership.
(MacNeil, 1981)
13
2.5.4 Commitment
The most commonly used dependent variable in studies of buyer-seller relationships is
engagement (Moorman, Zaltman & Deshpande 2022). According to Hardwick and Ford (2016),
commitment requires partners to continue to derive value and benefits from the partnership well
into the future. Undoubtedly, commitment is a key factor in whether a relationship will last in the
future. The constant desire to maintain a cherished connection is called relationship attachment.
Relationship value refers to the idea that a commitment to a relationship can only exist if it is
valued. A continued desire to maintain a relationship indicates a committed partner who wants
the relationship to last forever and who is willing to work to maintain it (Morgan & Hunt, 2018).
2.5.5 Cooperation
Cooperation is described as "similar or complementary coordinated operations carried out by
firms in interdependent relationships to accomplish joint or solo achievements with the
expectation of reciprocation over time" (Anderson & Narus, 2020). While Morgan and Hunt
(2018) appear to agree with the above statement, they elaborate on it by highlighting the
proactive part of cooperation as opposed to being forced to engage in interdependent activities.
The interplay of commitment and cooperation results in cooperative behavior, which allows the
partnership to function and guarantees that both sides benefit from the connection.

14
 CHAPTER THREE
RESEARCH METHODOLOGY
3.0 INTRODUCTION
The research methods and design that will be used in this study are described in this chapter.
This information is presented in sections with subheadings that include the following: research,
research design, and target population, sampling for the study, tools and processes for collecting
data, and lastly, the data analysis and presentation techniques to be utilized in the study.
3.1 STUDY DESIGN
The study's descriptive research design was used. To explain the properties of the independent
variables, the design was utilized (trust, communication, commitment, cooperation and mutual
goals). This was a suitable way to learn more about the phenomenon's status and characterize the
present scenario in relation to the research variable. According to Gharry and Gronhaug (2015),
descriptive design is recommended since it provides a report on things as they truly are because
the problem is well structured and understood. Mugenda and Mugenda (2015) concur.
3.2 POPULATION OF THE STUDY
One of Ghana's special needs pharmaceutical enterprises is The Kinapharma Company Limited
(KCL), which employs over 1000 people within the Kina Group of Companies. The population,
according to Sekaran (2015), is a collection of people, things, or things from which samples are
taken for measurement or it is a big group of people or things that share at least one thing. The
study's only intended audience was KCL personnel in Accra.
3.3 SAMPLE DESIGN
Purposive sampling necessitates selecting specific instances or units rather than doing it at
random (Kothari, 2011). Sampling will be used to comprehend some features or attributes of the
complete population based on the characteristics of the sample. Purposive sampling was used in
this investigation. The researcher gets exposed to a number of stakeholders with various
viewpoints on the study's difficulties using this technique. Sampling is used to learn more about
some attributes or aspects of the overall population based on the characteristics of the sample. A
sampling frame is a list of all the objects from which a representative sample was taken for
research.

15
3.4 SAMPLE SIZE AND SAMPLING FRAME
This analysis used a sample size of 174 employees. According to Mugenda and Mugenda (2015),
sampling is the field of statistical practice concerned with the selection of persons or
observations intended to offer information about a population of interest, particularly for
statistical conclusions. They recommend that a researcher used a sample size of 30% of the
overall target population for a sample to be deemed a good representative sample. As a result,
only 52 employees were sampled for the study.
3.5 DATA COLLECTION PROCEDURES/INSTRUMENTS
Variables identified as critical to achieving the case study's goal were utilized to develop a
questionnaire that was employed as a data gathering method. A closed questionnaire was filled
out by respondents. According to Mugenda and Mugenda (2015), questionnaires were selected
since they were simple to complete, and the findings were straightforward. The questionnaire
was administered using a drop-and-pick rating approach. Employees of KCL participated in the
study as respondents. As part of the primary source data collecting methodologies utilized in
research, questionnaires are used to acquire essential data from laboratories. To assist effective
data collection, the questionnaire includes both open and closed questions. Secondary data was
gathered from textual sources such as journals, journals, prior research, and other pertinent
publications. This enabled researchers to compare questionnaires with recorded material which
allowed KCL to gather and analyze data more effectively.
3.6 DATA ANALYSIS AND PRESENTATION
Data analysis, according to Sekaram (2015), has three goals:
 Understand data
 Determine data accuracy
 Address research concerns.
He claims that establishing the data's correctness lends credibility to all subsequent analyses and
findings because it checks the quality and reliability of the study's measurements and provides an
acceptable assessment and explanation. To further define and interpret the study's findings,
qualitative methodologies were introduced. The data was examined quantitatively, and the
results were presented in the form of frequency tables and pie charts. This gave the findings a
clear comprehension.

16
 CHAPTER FOUR
RESULTS AND DISCUSSIONS
4.1 INTRODUCTION
The presentation and analysis of data gathered through field surveys are the topics of this
chapter. The gathered Information was examined, presented in tabular form, graphed, and
charted, with percentages. Thirty-two (32) of the fifty-two (52) respondents who were given
questionnaires completed them satisfactorily and submitted them for analysis, giving the study a
62% response rate.
Table 1: Rate of Response
Responses Number of Respondents Percentages (%)
Expected responses 32 62
Received responses 19 36
None- responses 1 2
Total 52 100
Source: A Field Data Analysis (2022)
4.2 TIME SPENT IN THE ORGANIZATION
The purpose of the study was to determine the respondents' degree of experience. Table 3 shows
the results:
Table 2: Work experience of the respondents
Years of service Frequency Percentage (%)
1-2 years 8 15
3-5 years 6 12
6-9 years 12 23
10 years and above 26 50
Total 52 100
Source: A Field Data Analysis (2022)

The findings showed that 15% of respondents had 1-2 years of job experience, 12% had 3-5
years, 23% had 6–9 years, and 50% had more than 10 years.
4.2.1 Position in the Organization
The purpose of the research was to determine each respondent's place within the organization.
The results are shown in the table below:

17
Table 3: Position in the Organization
Department Frequency Percentage (%)
Administrator 12 22

Human resource 5 10

Accountant 4 8

Procurement 7 13

Finance 5 10

Audit 19 37

Total 52 100
Source: A Field Data Analysis (2022)

Table 3's data reveal that administrative officers make up 22% of the whole staff, with the
majority of them working in the audit department (37%), 10% in the finance department, 8% in
the accounts department and 10% in the human resources office.
4.3 GENDER OF RESPONDENTS
The purpose of the study was to determine how respondents were distributed by gender. Figure 1
shows the results:
Figure 1: Gender of Respondents

Male Women

Women
41%

Male
59%

Source: A Field Data Analysis (2022)

According to the results, 41% of respondents were women and 59% were men.

18
4.3.1 Effect of Trust on the Performance of Procurement
The summary of the data is shown in table 4 below. The researcher wanted to know how trust
affected procurement performance.
Table 4: Effect of Trust on Procurement Performance
Elements Evaluated In Terms Of Trust SD D N A SA
Sharing Of Data And Knowledge 4% 10% 2% 33% 51%
Cost-Sharing For The Pursuit Of Fresh Ideas 21% 20% 8% 39% 12%
Top-Notch Goods And Services 1% 1% 1% 19% 78%
Lower Costs 3% 2% 7% 35% 53%
Suppliers Always Think About Our Best Interests 5% 4% 11% 38% 42%

The results show that trust has a positive impact on purchasing performance. Where confidence
was high, there was a high level of achievement. This means that trust encourages retailer buyers
and sellers to focus on the long-term interests of the relationship, ultimately improving the
performance outcomes of the buyer-supplier relationship, including corporate and consumer
competitiveness. (Ganesan 1994) found that transaction costs were reduced (Noordewier et al.
1990). (Morgan and Hunt, 1994; Doney and Cannon, 2021) found that trust between buying
firms and their suppliers fosters long-term partnerships, promoting collaboration, satisfaction,
and conflict reduction.
4.3.2 Effect of Communication on the Performance of Procurement
Table 5 below shows the findings on the effect of communication on procurement performance.
Table 5: Effects of communication procurement performance
Elements Assessed Under Communication SD D N A SA

Decreased Lead Time 2% 3% 3% 52% 40%

Open Information Exchange 2% 6% 5% 42% 45%

Information Sharing Is Advantageous To Us. 2% 3% 5% 37% 53%

Inform Others Of Unforeseen Challenges 1% 1% 1% 28% 69%

Frequent Information Exchange 2% 2% 3% 15% 78%

Source: A Field Data Analysis (2022)

19
Procurement effectiveness has been shown to be greatly and positively impacted by
communication. Companies that maintain strong buyer-supplier relationships place a high value
on communication. This was achieved through the insight (Bird, 2015) that effective
communication is essential to maintaining long-term relationships with buyers and achieving
high sourcing performance. Shorter lead times were recognized, unforeseen challenges were
communicated, and procurement performance improved as a result.
4.3.3 Effect of Cooperation on the Performance of Procurement
Results on the degree of agreement with the statement on the impact of cooperation on
procurement performance are shown in Table 6 below.
Table 6: Effect of Cooperation on procurement performance
Elements Evaluated Under Cooperation SD D N A SA

Collaboration On Development With Suppliers 2% 3% 3% 8% 84%

Recognize One Another's Expectations. 5% 8% 9% 33% 45%

Collaborating On Decisions 2% 1% 3% 63% 31%

Accept Full Responsibility 3% 2% 3% 33% 59%
Source: A Field Data Analysis (2022)

Results showed that collaboration has a significant and positive impact on procurement
performance. Previous studies on channel distributions have shown a good relationship between
collaboration and satisfaction (Anderson and Narus 1990; Skinner et al. 1992). Channel members
can more easily achieve common goals when they work together. Therefore, the results
supported previous findings.
4.3.4 Effect of Commitment on the Performance of Procurement
The results of the study on the effect of commitment on procurement performance are presented
in table 7 below.
Table 7: Effect of Commitment on Procurement Performance
Source: A Field Data Analysis (2022)

The results showed that engagement has a beneficial and significant impact on procurement
effectiveness. This is consistent with previous findings. (Stanko et al., 2017) Engagement is a
way for suppliers and buyers to understand that the current connection is so important that it
deserves to maintain it over the long term and make every effort to improve sourcing
performance. It claims to help establish recognition. Both sides should be willing to expend

20
resources to commit the relationship. Their ability to recognize and internalize the goals and
values of others allows them to create connections that improve the procurement effectiveness of
their organizations (Kwon, 2015).
4.3.5 Effects of Buyer-supplier on the Performance of Procurement
The researcher was interested in how the supplier-buyer relationship had affected the
performance of procurement. Table 8 below summarizes the findings.

Table 8: Effects of buyer-supplier on procurement performance

Elements Assessed Under Buyer-Supplier Effects SD D N A SA
Better Pricing That Is Competitive 3% 4% 8% 15% 70%
Decreased Lead Time 6% 7% 5% 63% 19%
Decreased Risk Of No Supply 0% 2% 4% 72% 22%

Increased Delivery Reliability 0% 5% 12% 17% 66%

Enhanced Inventory Control 7% 4% 5% 22% 62%
Higher Sales 2% 6% 7% 54% 31%

Increased Customer Satisfaction 1% 3% 6% 20% 70%

Source: A Field Data Analysis (2022)

According to the study's findings, the link between buyers and sellers has improved competitive
pricing, shortened lead times, decreased the risk of non-supply, boosted delivery dependability,
improved inventory control, and raised sales and customer happiness. This demonstrates how
factors affecting the buyer-supplier relationship enhance procurement efficiency.

21
 CHAPTER FIVE
SUMMARY, CONCULSIONS AND RECOMMENDATIONS
5.0 INTRODUCTION
The goal of the study was to determine how connections between buyers and sellers affected the
effectiveness of procurement at government-run tertiary educational institutions in the
Greater Accra region. The study set out to (i) To determine the effect of trust on the private
sector's procurement performance, (ii) To ascertain how supplier communication affects the
performance of procurement., (iii) To evaluate the effect of suppliers' commitment on the
performance of procurement., and (iv) To identify the effect of cooperation on the performance
of procurement. The summary of findings for the four objectives listed above, the conclusions,
recommendations based on the findings, and proposals for more study are all presented in this
chapter.
5.1 SUMMARY OF FINDINGS
According to the study, trust between the purchasing business and its suppliers fosters long-
lasting relationships and increases collaboration, satisfaction, and dispute resolution. The
findings of the study demonstrated that communication has a favorable and significant impact on
the effectiveness of procurement. Companies that maintained a solid buyer-supplier relationship
gave communication a high ranking. There was improved procurement performance because of
the shorter lead-time, communication of unforeseen problems, and other factors.
The findings revealed that cooperation significantly and favorably affects procurement
performance. Members of the channel will achieve their shared objectives with more ease if they
cooperate with one another. The results therefore supported earlier findings.
The results showed that commitment has a favorable and considerable impact on the
effectiveness of procurement. In order to improve the effectiveness of procurement, suppliers
and buyers must establish the conviction that their current relationships are extremely significant
and should be maintained for a very long time. Both sides must be willing to spend resources in a
relationship in order for it to be committed.
According to the study's findings, the link between buyers and sellers has improved competitive
pricing, shortened lead times, decreased the risk of non-supply, boosted delivery dependability,

22
improved inventory control, and raised sales and customer happiness. This demonstrates how
factors affecting the buyer-supplier relationship enhance procurement efficiency.
5.2 CONCLUSIONS
The study's findings also indicated that dedication has a favorable and notable impact on the
efficiency of the procurement process. Particularly, the collaboration that the company has with
its key suppliers is one to which both parties are deeply dedicated. Additionally, communication
significantly and favorably affects the effectiveness of the procurement process. Consequently,
businesses always communicate with their suppliers about what is expected of them, and they
keep each other updated on any events or developments that may have an impact on the other
party. As a result, suppliers are given pertinent information that may be of use to them.
Additionally, it was demonstrated that collaboration had a favorable and considerable impact on
procurement performance. The study provides proof that trust affects procurement performance
in a favorable and significant way. Because of this trust, suppliers provide the highest-quality
product on the market because they genuinely care about the business.
5.3 RECOMMENDATIONS
The following recommendations are made in light of the research's results that collaboration,
communication, and trust have good and substantial effects on procurement performance:
Organizations must use trust since it has a beneficial and substantial impact on procurement
success for both parties. They will be able to take advantage of several advantages, such as cost
savings, unrestricted exchange of ideas and information, and sharing of private data. In order to
improve procurement performance, communication is also essential. As a result, there is a
requirement for regular contact between customers and suppliers as well as for a prompt and
correct response. Organizations must make an effort to develop lasting partnerships.
Cooperation is essential for improving procurement success. Therefore, it is necessary for buyers
and sellers to collaborate and make decisions together. Integrity, credibility, and trustworthiness
will all be improved as a result, and both sides will be satisfied. Commitment is also crucial for
improving the effectiveness of procurement. Therefore, in order to retain the current connection
over the long run, it is imperative that both customers and suppliers put up their best efforts.
There must be a desire to contribute money and knowledge for both parties' gain.
5.3.1 Suggestions for Further Study

23
The effect of buyer-supplier relationships on procurement success was the focus of this study.
With a bigger, more representative sample, it may be repeated. Additionally, it is advised that
this study be repeated in several business sectors in the Accra region. It would also be intriguing
to find out if the same results apply to other businesses. It is also essential to establish the
obligations of communication, trust, and commitment in value creation in strategic networks.

24
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 QUESTIONNAIRE
Dear Respondent
We are currently undertaking a research study entitled “effects of buyer-supplier relationship on
procurement performance”. The research is towards the partial fulfillment of the requirements
for the award of the Higher National Diploma (HND) of Purchasing and Supply Management of
Accra Technical University, Accra. We would be grateful if you could spend a few minutes
filling out the questionnaire below. No personal information will be disclosed or made public,
and your answers will be kept strictly confidential. If you are interested in the result of this
research, I would be more than happy to send you a summary upon completion of this study. The
questionnaire is into four sections. Please complete each section as instructed. Do not write your
name or any other form of identification on the questionnaire.
Thank you for your cooperation
Yours Sincerely,

SECTION A: GENERAL INFORMATION

1. Duration the Organization has been in operation
a) 1-2Years { }
b) 3-5years { }
c) 6 -9 years { }
d) More Years10 { }

2. What is your position in this organization?

a) Administrator [ ]
b) Human Resource [ ]
c) Accountant [ ]
d) Procurement Officer [ ]
e) Finance Officer [ ]
f) Auditor [ ]
g) Electrician [ ]
h) IT Personnel [ ]
i) Tutor [ ]
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 j) Other (specify)………………………………………….

3. How long have you been in this position?

a) Less than 5 years [ ]
b) 5 to 10 years [ ]
c) 11 to 15 years [ ]
d) Above 15 years [ ]

4. Gender
a) Male [ ]
b) Female [ ]

SECTION B: THE EFFECT OF TRUST ON THE PERFORMANCE OF

PROCUREMENT
Please indicate the extent to which you concur with the following statements concerning the
listed variables by placing a tick (√) where appropriate.
Elements Evaluated In Terms Of Trust SD D N A SA

5. Sharing Of Data And Knowledge

6. Cost-Sharing For The Pursuit Of Fresh Ideas

7. Top-Notch Goods And Services

8. Lower Costs

9. Suppliers Always Think About Our Best Interests

SD- Strongly Disagree

D- Disagree
N- Neutral
A-Agree
SA- Strongly agree

33
EFFECT OF COMMUNICATION ON THE PERFORMANCE OF PROCUREMENT
Please indicate the extent to which you concur with the following statements concerning the
listed variables by placing a tick (√) where appropriate.
Element measured under communication SD D N A SA

10. Effective communication lead to decreased

lead time
11. Open information exchange is essential

12. Willing to share information is

advantageous to us
13. Do we communicate unforeseen
challenges?
14. Is there an exchange of information
frequently
SD- Strongly Disagree D- Disagree N- Neutral A- Agree SA- Strongly agree

EFFECT OF COOPERATION ON THE PERFORMANCE OF PROCUREMENT

Please indicate the extent to which you concur with the following statements concerning the
listed variables by placing a tick (√) where appropriate.
Element measured under cooperation SD D N A SA

15. Our firm involved in joint development

work with suppliers
16. We understand each other’s expectations

17. Joint decision making is vital element in

buyer supplier relationship
18. Both parties accept full responsibility

SD- Strongly Disagree D- Disagree N- Neutral A- Agree SA- Strongly agree

34
EFFECT OF COMMITMENT ON THE PERFORMANCE OF PROCUREMENT
Please indicate the extent to which you concur with the following statements concerning the
listed variables by placing a tick (√) where appropriate.
Element measured under commitment SD D N A SA

19. Relationship merits our firm’s maximum

attention
20. We view relationship as long term
partnership
21. Product quality is timely delivered by
suppliers.
22. Relationship with key suppliers are very
crucial
23. We are prepared to make immediate
sacrifices
SD- Strongly Disagree D- Disagree N- Neutral A- Agree SA- Strongly agree

PROCUREMENT PERFORMANCE
Please indicate the extent to which you concur with the following statements concerning the
listed variables by placing a tick (√) where appropriate.
Elements of Procurement Performance SD D N A SA

24. Buyer-supplier relationships results in

improved competitive pricing
25. Buyer-supplier relationship leads to reduced
lead time
26. Buyer-supplier relationships leads reduced
risk of none supply
27. Buyer-supplier relationships leads improved
dependability of deliveries

35
 28. Buyer-supplier relationships leads improved
inventory management
29. Buyer-supplier relationships results in
increased sales
30. Buyer-supplier relationships results in
improved customer satisfaction
SD- Strongly Disagree D- Disagree N- Neutral A- Agree SA- Strongly agree

Thank You for Participating

36