Determinants of Strategic Sourcing and Organizational Performance: Evidence from Tanzania Port Authority, Dar es Salaam

Perazia Robert Magesa – Department of Procurement and Supply Management
College of Business Education

Khamis Nassor Salum – Department of Business & Information Technology
Institute of Public Administration, Zanzibar

Email: magesaperazia@gmail.com/ msc.khamis2017@gmail.com

Abstract: The study examined the determinant of strategic sourcing on organizational performance. An exploratory research design was employed in the study. Questionnaires were used to gather data using only a quantitative method. Both stratified and simple random techniques were used to select hundred and seventy-one (171) participants determined using Yamane formula. Quantitative data were analyzed using descriptive and multiple regression analysis with the help of SPSS. Study findings revealed that supplier negotiation was found to have no significant effect on organization performance which implies that supplier negotiation practice at TPA do not substantially influence performance outcome including attainment of fair price for the specified quality of the goods, payment terms, liability claims and delivery terms. Consequently, study findings revealed that organizational performance may be influenced more strongly by supplier relationship management and supplier selection since SRM and supplier selection show significant effect on organization performance which implies sharing of quality information between strategic sourcing partners, involvement in supplier development and capabilities. The study recommends that public sector reforms should concentrate on bolstering the institutional capacities of its employees that enable strong negotiation skills, supplier management and selection as procurement resources and government should implement policies that support transparent supplier selection processes, negotiation, strategic procurement management and long-term supplier relationship management.