Buyer-Supplier Relationships and its Influence on the Procurement Performance: Insights from Empirical Analysis

Abstract

Procurement plays a key role in the economic and social development of nations since its emergence as a significant driver of organisational performance. Procurement accounts for approximately 18.42% of the global Gross Domestic Product (GDP) and 70% of organisational expenditures. Tanzania confronts challenges that have direct impact on procurement performance, despite strong buyer-supplier relationships defined by trust, commitment, and communication among big manufacturing firms. In this article we examined the link between trust, commitment, and communication, as well as their impact on procurement performance to advance the argument on the influence of the buyer-supplier relationship on procurement performance, a systematic qualitative synthesis utilising homothetic content analysis is utilised to examine data. According to the findings of the study, trust serves as a motivator for buyers and suppliers to focus on the long-term advantages of relationships, therefore improving performance outcomes. Commitment is recognised as a major motivator in long-term relationships; hence, buyers and suppliers should prioritise the virtue in order to obtain long-term competitive advantage and, as a result, procurement performance. Moreover, communication is useful in establishing trust and commitment in buyer-supplier relationships in order to ensure procurement performance