Assessing the effectiveness and impact of buyer-supplier relationship on the performance of small and medium enterprises: a case study of Kumasi Metropolis
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Date
NOVEMBER, 2015
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Abstract
The study aimed at assessing the effectiveness and impact of buyer-supplier relationship on the
performance of small and medium enterprises, and has identified the existing buyer-supplier
relationship, assessed the efficiency of suppliers in rendering services to buyers, the perception
of buyers on buyer-supplier relationship and its performance as well as the effect of the existing
buyer-supplier relationship on the performance of SME’s. The simple random sampling
technique was used to select a total of 100 respondents for the study which included various
people dealing in the sale of different products. Descriptive statistics, a five-point likert scale and
the perception index were used to address the objectives. The study has revealed that majority of
the buyers are females (61%) and fall between the ages of 20-40 years with a mean age of 39.2
years and are married. Most of the SME operators have attained secondary education and have
been in business for between 1-10 years. The study has also revealed that majority of the SME
operators receive the products they sell from suppliers and the most common and predominant
existing relationship between buyers and their suppliers is transactional. The study revealed that
suppliers were most efficient at supplying goods ofvery good quality to the various operators of
SME’s as well as delivery of the required quantities of products to the buyers. Also, SMEs
generally have a positive perception concerning the buyer-supplier relationship. Again, the study
has established that buyer-supplier relationship between the operators of SMEs and their
suppliers is satisfactory and this has improved their performance significantly. It is
recommended that suppliers should carry on with the good work to help in preserving the
relationship they have with their buyers and should improve on delivering the exact quantity of
goods in time. It is also recommended that operators of SMEs should restructure their
relationship with their suppliers in terms of timeliness of making the produce available based on
trust and information sharing as this will improve their performance significantly.
Description
A thesis submitted to the Department of Building Technology, College of Art and Built Environment,
Kwame Nkrumah University of Science and Technology in
partial fulfillment of the requirement for the Degree of Master of Science in Procurement Management.