Examining the Impact Records Keeping, Information Sharing and Partner Relations on Procurement Performance in Firms

This study examines the extent to which information sharing, records keeping and partner relations influence firm performance via the creation of an efficient procurement system. A survey of 142 firms in the Ashanti region of Ghana, selected using the convenience sampling technique is used in the study. The study adopted a quantitative approach, with a structured questionnaire as the primary data collection instrument. An examination of the relationship among the variables reveal that procurement efficiency partially mediates the relationship between each of the three procurement related practices and firm performance. The implication of these findings for practice is that a focus on collaboration, not competition must be the aim of procurement. In modern times, firms must move beyond adversarial relations and focus on creative collaborative, long term relationship with selected suppliers. The study proposes that records keeping and audit of the process must be accorded as much importance as tender evaluation and contract management. The findings further imply that Suppliers are an extension of the focal firm and must be viewed as such. Excessive use of power leaves the weaker party aggrieved and willing to resort to unethical practices, which may include supply of low quality materials or creation of artificial shortages.