Antecedent Factors of Procurement Performance in the Public Health Sector in the Gauteng Province

Abstract

Public procurement occupies a key role in government departments and public entities. Supplier selection, a sub-function of procurement, has become one of the elementary roles of procurement managers since it virtually affects any industry’s competitiveness. Therefore, selecting suitable suppliers brings substantial benefits to enterprises and increases customer satisfaction. The purpose of this study was to investigate the relationship between supplier selection practices, supplier risk management, supplier commitment, and procurement performance in the public health industry in Gauteng province. The survey material was designed in a structured questionnaire to measure the study constructs. The collected quantitative data were analysed using the SMART-PLS 3 structural equation modelling procedure. The study results showed positive and significant relationships amongst all variables except for one. Supplier risk management had a weak and insignificant connection with procurement performance. The results are essential to the existing literature on procurement performance within public health industries in developing countries such as South Africa. The study concludes by suggesting recommendations for limiting the impact of the identified challenges on procurement performance.