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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Masithembe Kafile & Stanley Fore, 2018. "Effects of Procurement Processes on Project Execution in A Project Management Company in Cape Town, South Africa," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 4(4), pages 176-186.
    • Handle: RePEc:apa:ijbaas:2018:p:176-186
    DOI: 10.20469/ijbas.4.10005-4
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    References listed on IDEAS

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    1. Daniel Dasig Jr, 2017. "A frontier in organizational and business process innovation in service management through lean six sigma Kaizen project implementation," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 3(6), pages 263-283.
    2. Nguyen Nghia Hoai & Chinda Thanwadee, 2015. "Investigating Factors Influencing Profits Enhancement in Real Estate Companies in Ho Chi Minh City, Viet Nam," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 1(3), pages 107-113.
    3. Risal & Kristiawati Endang, 2017. "The effect of investment decision financing decision dividend payment policy and company size," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 3(2), pages 105-113.
    4. Alfian & Murti Galuh Tresna, 2017. "The Influence of Company’s Age and Owner’s/Manager’s Education on the Use of Accounting Information in Small and Medium Enterprises," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 3(2), pages 64-71.
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    Cited by:

    1. Ivy Hawah Taana & Valliappan Raju, 2020. "Determinants of project management methodologies and its effects on project success in Ghana–A conceptual paper," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 6(3), pages 84-94.

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