Impact of operational budgeting on procurement performance: a case of manufacturing firms in the Jinja Industrial Hub.

Abstract

This dissertation is about the impact of operational budgeting on procurement performance of manufacturing firms in the Jinja Industrial Hub (JIH). The research study is an original work undertaken to contribute towards the streamlining of budgeting activities and procurement practices in manufacturing firms. The areas of concern for the study concentrate on the impact of budgeting approaches, budget reviews, budgeting ethics and expense forecasts on procurement performance. The researcher used the stratified random sampling technique to select the manufacturing firms that were involved in the study. The findings of the study indicated that the independent variables; budgeting approaches, budget reviews, budgeting ethics and expense forecasts had a statistically significant relationship with the dependent variable, procurement performance. The results from the multiple regression analysis revealed that of the four independent variables, only budgeting approaches and budgeting ethics had a statistically significant impact on procurement performance. The findings further indicated that operational budgeting had a statistically significant impact on procurement performance of manufacturing firms in the JIH. The study offers contribution in the areas of streamlining budgeting and procurement practices and formulation of procurement evaluation measures. The research study recommends that budgeting approaches adopted should be practical, promote cost reduction and support efficiency in resource allocation. Adherence to budgeting ethical practices, and embedding procurement performance as a critical requirement in the development of their firms.