Effect of Strategic Sourcing on Organizational Performance: A case of Sulfo Rwanda Industries (2021-2024)

Annualitte Vumiriya & Akumuntu Joseph
University of Kigali
https://orcid.org/0009-0001-5693-2478
Email: annualittev@gmail.com

Abstract: The general objective of this study was to examine the effect of strategic sourcing on organizational performance of Sulfo Rwanda Industries. The Statistical Package for the Social Sciences (SPSS) version 25 was used for statistical analysis, employing both descriptive and inferential statistics. Descriptive statistics summarized key data characteristics, while correlation analysis explored the relationships between strategic sourcing elements and organizational performance. Strategic supplier selection has an unstandardized coefficient of 0.233, indicating that a one-unit increase in strategic supplier selection results in a 0.233-unit increase in organizational performance (β = 0.233, t = 2.505, P = 0.013). Strategic supplier negotiation has an unstandardized coefficient of 0.213, indicating that a one-unit increase in strategic supplier negotiation results in a 0.213-unit increase in organizational performance (β = 0.213, t = 2.536, P = 0.012). Furthermore, strategic supplier collaboration has an unstandardized coefficient of 0.212, signifying that a one-unit increase in strategic supplier collaboration leads to a 0.212-unit increase in organizational performance (β = 0.212, t = 3.072, P = 0.002). Strategic supplier monitoring also has an unstandardized coefficient of 0.238, indicating that a one-unit increase in strategic supplier monitoring corresponds to a 0.238-unit increase in organizational performance (β = 0.238, t = 4.175, P = 0.000). The study recommended that Sulfo Rwanda Industries should enhance strategic supplier management by improving communication, strengthening collaboration, increasing supplier participation, and empowering suppliers through capacity-building programs to enhance organizational performance.