The Role of Procurement Practices in the Financial Performance of Not-for-Profit Organizations: a Case of Baylor-Uganda

Abstract

This study was undertaken with the aim of assessing the role of procurement practices on the financial performance of Not-for-Profit Organizations: A Case of Baylor-Uganda. Procurement practices are a set of activities undertaken by an organization to promote effective management of its supply chain (Sollish & Semanik, 2012). The study objectives included to determine the relevance of having a procurement plan in the procurement process, to examine and establish the benefits of record keeping during the procurement process on financial performance and to describe and analyze the effect of contract management and administration on financial performance.

The study adopted a mixed approach. The cross-sectional research design where quantitatively data was collected using structured questionnaires targeting staff in Finance, Procurement, Internal Audit, Stores, Administration and other departments of Baylor-Uganda(COE) whereas qualitatively face to face interactions were used.

Data was analyzed using SPSS, which when used provides a variety of statistical measures like percentages, mean, standard deviation, variances etc. The study achieved 100% response rate since all questionnaires administered were filled and returned. The study population comprised of forty eight people out of which thirty six respondents were selected using purposive sampling method as the researcher picked on respondents basing on their role in the procurement process in arriving at the sample size. The analysis of the primary data indicated that procurement planning, records keeping and contract management all have a positive effect on financial performance of NPOs as revealed by the findings of the study.

The researcher, therefore, recommends NPOs to ensure effective procurement planning for uniform procurement systems, keeping of sound procurement records to promote decision making, transparency and accountability as well as having an agreed contract management plan to avoid poor quality services hence enhancing achievement of value for money. This I turn will promote good financial performance.

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