Supplier management and organizational performance of manufacturing organizations in Mogadishu. A cross-sectional study.
DOI:
https://doi.org/10.64792/h7d2p280Keywords:
Supplier management, Organizational performance, Supplier relationships, Supply chain integration, Manufacturing firmsAbstract
Background
The study aimed to determine the relationship between supplier management and organizational performance of manufacturing organizations in Mogadishu.
Methodology
The study employed a descriptive explanatory survey design involving 33 manufacturing organisations in Mogadishu, Somalia. The target population comprised 88 employees from procurement, supply chain, logistics and operations departments. A census approach was used to include the entire target population. Structured questionnaires were administered to collect primary data. Validity was assessed using the Content Validity Index, and reliability was established using Cronbach’s Alpha. Descriptive statistics and linear regression were applied to analyse data at a 0.05 significance level. Informed consent, honesty, confidentiality and anonymity guided ethical conduct.
Results
The study achieved a response rate of 78% (69/88). Regarding age, 9 (13.0%) respondents were aged 21–30 years, 22 (31.9%) were 31–40 years, 27 (39.1%) were 41–50 years, and 11 (15.9%) were above 50 years. Supplier management recorded an overall mean of 3.75652 (SD=0.8783). Agreement was highest for long-term supplier partnerships (75.4%), followed by collaboration on quality standards (75.3%), regular supplier evaluation (73.9%), regulatory compliance assessment (73.9%) and responsiveness to demand changes (69.6%). Regression analysis established a positive relationship between supplier management and organisational performance (R=0.750, R²=0.562, adjusted R²=0.555, F=85.888, p=0.000). Supplier management significantly predicted organisational performance (B=0.606, SE=0.065, β=0.750, t=9.268, p=0.000). The constant was 3.695 (SE=1.235, t=2.992, p=0.004). Supplier management explained 55.5% of performance variation.
Conclusion
Supplier management is a highly valued aspect of integration among manufacturing organisations in Mogadishu, Somalia.
Recommendation
Supply chain managers of the manufacturing firms in Mogadishu should aggressively and proactive intensify long term partnership and collaboration with suppliers in new product development.
References
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