USV Annals of Economics and Public Administration (Jun 2024)

DO PUBLIC ENTITIES NEED SUPPLIER RELATIONSHIPS? EVIDENCE IN UGANDA CASE: UGANDA NATIONAL BUREAU OF STANDARDS

  • Rashid Senvuma,
  • Alex Nduhura,
  • John Paul Settumba,
  • Paul Wanume

Abstract

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This study investigates the link between supplier relationship management and contract performance in the public sector, focusing on the Uganda National Bureau of Standards (UNBS). While supplier relationships are well-studied in general, their importance and dynamics within the public sector remain underexplored. Utilizing a cross-sectional design, the research employed both quantitative and qualitative methodologies, including surveys and semi-structured interviews with 104 respondents from UNBS. Findings reveal a significant positive relationship between effective supplier relationship management and contract performance. Key elements such as prompt payments, clear communication, well-defined roles and responsibilities, and trust-building emerged as critical factors enhancing this relationship. The correlation analysis indicated a statistically significant positive correlation (r = 0.525, p < 0.01) between supplier relationship management and contract performance, suggesting that improved communication, clear role delineation, and trust can substantially boost organizational performance. However, challenges such as communication gaps and regulatory constraints were noted, which may hinder the full realization of these benefits. The study underscores the importance of fostering strong supplier relationships to enhance service delivery and organizational performance in the public sector. Recommendations include enhancing communication channels, trust and transparency, clearly defining roles and responsibilities, building and maintaining trust through prompt payments and feedback mechanisms, performance measurement and evaluation, capacity building, and supplier relationship management framework. By adopting these strategies, public entities like UNBS can significantly improve their contract performance and service quality, thereby contributing to the effective regulation and development of quality standards in Uganda.

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