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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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.
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.