The Influence of Organizational Factors on Supplier’s Performance in Temeke Municipal Council.

Abstract

This study examined the influence of organizational factors on supplier performance in Temeke Municipal Council. The specific objectives were to determine the influence of budget allocation, top management support, and staff competence on supplier’s performance. The study adopted a cross-section research design and a sample of 67 respondents was selected from Temeke Municipal Council using a simple random technique. Data collection methods and tools used were interviews, questionnaires and documentary review. Data were analyzed using descriptive statistics and correlation analysis. The study found that user departments are not involved in budget allocation and the prepared budget is not sufficient in all planned activities related to procurement. Moreover, it was also found that there is a moderate commitment of top management in procurement proceedings and there is inadequate training approved by top management related to procurement staff. Furthermore, in staff competency, the study found out that Tender board members are not provided with training and knowledge to know their powers and their responsibilities after they have been appointed and the use of information technology systems was not common in operations of procurement functions in Temeke MC. The study concluded that budget allocation, top management support and staff competency were important organizational factors on supplier performance in Temeke MC. Therefore, the study recommended that the Council should provide enough budgets for procurement activities and adequate training to procurement staff. It should also involve suppliers and user departments during the procurement process, this will help to improve supplier performance.