Procurement performance and profitability in foam mattress firms in Uganda

Abstract

The purpose of this study was to examine the effect of procurement performance on the profitability of Foam Mattress Firms in Uganda. Cross-sectional research design was used to execute the study. Stratified and simple random sampling techniques were employed to draw a sample size of 40 Departments whose inventory, supply chain, production, marketing, internal audit and accounting department formed the unit of analysis while inventory managers, store keepers, supply chain managers, quality controllers, production managers, accountants, and internal auditors formed the unit of inquiry. Questionnaires were self-administered to 200 respondents. The units of analysis (Departments) were each represented by five (5) respondents. The responses were aggregated to the respective units of analysis (Departments). Correlation and regression statistical analysis were performed by SPSS. The findings revealed that procurement performance is positive and significantly associated to profitability (r=0.857; p<0.01). Overall, the results indicate that procurement performance greatly influences profitability in Foam Mattress Manufacturing Firms in Uganda. The study was cross- sectional with its intrinsic weaknesses. This study was limited to Foam Mattress Manufacturing Firms sector in Uganda. Future study should examine the same in line with other private sector industries. Moreover, the findings were drawn from the study within the setting of Uganda, thus future study should examine the same in different countries. Key words: Procurement, performance, procurement performance, profitability.