The effects of procurement risk management on organizational performance of private manufacturing firms in Tanzania - A case of Coca Cola Kwanza Limited
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Mzumbe University
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A Dissertation Submitted in Partial Fulfillment of the Requirement for the
Award of Masters of Science in Procurement and Supply Chain
Management of Mzumbe University
The central focus of this study assesses the effect that procurement risk management has on organization's performance. The specific objectives were to identify risks sources that affect organizational performance of a company in a manufacturing firm, to determine the influence of Procurement risk identification process on organization’s performance and to examine the influence of company’s mitigation strategies on organizational performance of manufacturing firms. The study adopted case study research design at Coca Cola kwanza limited, Dar es Salaam with a sample size of 77 respondents. Data was obtained primarily through questionnaire administration and interview, while journals and organizational reports were used as secondary source.Descriptive statistics as well as regression model were used to analyze the quantitative data obtained while qualitative data were analyzed using content-based data.The study has revealed that risk identification process had significant effect on organization performance according to the findingswhich indicated that there are sources of risk that affect organization performance which include: Technological risk, organizational and societal risk, market risk, financial risk, and regulations risk. Third, respondents highly agreed risks tolerance and cost benefit analysis act as the best strategy on mitigating risk to a very large extent. Also the uses avoidance strategy improves the performance of the organization with a regression significant value less than 0.05 signifying statistically significance. The study therefore recommends that management of organizations need to take cost-effective measures to identify risks in a timely manner, effectively mitigating the risks. Companies need to adjust their risk management of the procurement. This will ensure Coca Cola Kwanza Limited meets international standards and is competitive globally.It is critical that the organization proactively recognizes and addresses the risks. It is necessary to evaluate, identify the main mitigation measures along the process of the distribution chain and the procurement process
The central focus of this study assesses the effect that procurement risk management has on organization's performance. The specific objectives were to identify risks sources that affect organizational performance of a company in a manufacturing firm, to determine the influence of Procurement risk identification process on organization’s performance and to examine the influence of company’s mitigation strategies on organizational performance of manufacturing firms. The study adopted case study research design at Coca Cola kwanza limited, Dar es Salaam with a sample size of 77 respondents. Data was obtained primarily through questionnaire administration and interview, while journals and organizational reports were used as secondary source.Descriptive statistics as well as regression model were used to analyze the quantitative data obtained while qualitative data were analyzed using content-based data.The study has revealed that risk identification process had significant effect on organization performance according to the findingswhich indicated that there are sources of risk that affect organization performance which include: Technological risk, organizational and societal risk, market risk, financial risk, and regulations risk. Third, respondents highly agreed risks tolerance and cost benefit analysis act as the best strategy on mitigating risk to a very large extent. Also the uses avoidance strategy improves the performance of the organization with a regression significant value less than 0.05 signifying statistically significance. The study therefore recommends that management of organizations need to take cost-effective measures to identify risks in a timely manner, effectively mitigating the risks. Companies need to adjust their risk management of the procurement. This will ensure Coca Cola Kwanza Limited meets international standards and is competitive globally.It is critical that the organization proactively recognizes and addresses the risks. It is necessary to evaluate, identify the main mitigation measures along the process of the distribution chain and the procurement process
Keywords
Procurement risk management