Effects of Procurement Processes on Project Execution in A Project Management Company in Cape Town, South Africa

Masithembe Kafile and Stanley Fore
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Masithembe Kafile: Faculty of Business and Management Sciences, Cape Peninsula University of Technology, Cape Town, South Africa
Stanley Fore: Faculty of Business and Management Sciences, Cape Peninsula University of Technology, Cape Town, South Africa

International Journal of Business and Administrative Studies, 2018, vol. 4, issue 4, 176-186

Abstract: Accentuating the compelling procurement challenges in project execution, which comprises supplier-related issues, strategy selection issues, cost reduction and savings achievement factors, data accuracy issues, and stakeholder management concerns this study envisioned to unearth the challenges that occur in procurement processes and the effects these challenges have on project execution. To clearly illustrate the magnitude of challenges faced in procurement processes, a project management company in Cape Town, South Africa, was chosen as the subject of study. The data of this study was collected through means of quantitative method on the company under study whereby a survey questionnaire was disseminated to participants for self-administering and the data collected was analysed using version 25 of the Statistical Package for Social Sciences (SPSS) software. The results of this study suggest that lack of training of the project team, corruption, favouritism, fraud and delays from suppliers are the major causes of poor procurement and these results agree to the main thrust of the literature reviewed in the study that any lack of training, policy compliance and consistency in compliancy of law will cause failure and challenges in any organisation. This study further aimed to add input to the existing body of knowledge concerning the effects of procurement processes on project execution in project management and to contribute to the existing literature in procurement management. Considering the challenges mentioned above, it is to be hoped that the study would be of interest to project managers, South African workforce, individuals, and academics in general, and valuable to all those seeking improvement in the field of project management.

Keywords: Procurement; effects; execution; project; Cape Town. (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:apa:ijbaas:2018:p:176-186

DOI: 10.20469/ijbas.4.10005-4

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