OSHIONYA Kenneth Obirieze1, HARCOURT Horsfall2,
ADIELE Kenneth C.3
1, 2, 3 Department of Marketing, Faculty of Administration and Management
Rivers State University Nkpolu-Oroworukwo, Port Harcourt
Corresponding email: kenneth.oshionya@ust.edu.ng
Abstract
The relationship between supplier selection and supply chain performance of construction companies in Rivers State was investigated in this study. The study adopted an explanatory research design. The population of the study comprised 173 construction companies in Rivers State. The Taro Yamene formula was used to derive a sample size of 121 construction companies. 121 respondents who are procurement managers in the construction companies were drawn to provide data for the study. Structured questionnaire designed in the Likert five-point scale of strongly agree to strongly disagree was used to collect primary data. The reliability of the instrument was ascertained through Cronbach’s Alpha test of reliability with a threshold of 0.70. The Pearson Product Moment correlation was used to test the hypotheses formulated for the study. The study found that supplier selection has a very strong positive and significant relationship with cost reduction, service quality and on time delivery respectively. In view of these findings, the study concluded that supplier selection is an important driver of supply chain performance improvement; and recommends that managers of construction companies should focus on factors such as the experience, capacities, network reach and other related factors which demonstrate the competence and capital accruable from their relationship and partnerships with suppliers.
Keywords: Supplier selection, supply chain performance, cost reduction, service quality, on time delivery.