Effects of Buyer-Supplier Communication on the Performance of Procurement Functions in Tanzania:

Abstract

Given that good communication between suppliers and buyers is crucial to procurement operations, it is frequently ignored or underestimated, which makes it more difficult to accomplish procurement objectives. This study aimed to examine the impact of buyer-supplier communication on procurement performance in the Arusha region of Tanzania Electric Supply Company Limited. Social exchange and network theories served as the foundation for the study. In this study, a cross-sectional design was employed. Purposive sampling was used to choose a sample size of 57. Questionnaires were used to collect primary data, while document reviews were used to collect secondary data. Descriptive statistics, factor analysis (using Bartlett's Test of Sphericity and Kaiser-Meyer-Olkin Measure of Sampling Adequacy), regression analysis, and correlation analysis (Pearson Correlations) were all used in the data analysis, which was carried out using SPSS V.22. The findings demonstrated that, at a significance level of 0.000 (P<0.05), buyer-supplier communication significantly and favorably affects value for money. The study came to the conclusion that communication between buyers and suppliers has a big impact on public procurement performance. It was suggested that in order to improve procurement performance in the public sector, TANESCO, legislators, and other stakeholders instruct clients and contract managers on the value of clear communication.