Procurement Practices and Supply Chain Performance of SMEs in Kampala

The study sought to examine the relationship between the components of procurement practices which are purchasing risk taking, purchasing knowledge and skills and strategic purchasing and supply chain performance of SMEs in Kampala District in Uganda. The motivation for the study was the fact that SMEs suffer poor supply chain performance and there was need to identify the extent to which unprofessional practices like procurement practices, explain supply chain performance. Findings revealed that the components explained 19.4% of the variance in supply chain performance, purchasing risk taking was a significant predictor of supply chain performance while purchasing knowledge and skills and strategic purchasing were not. These findings raise implications for SME managers, owners and policy makers which have to be addressed if the competitiveness of SMEs in Uganda is to be enhanced in light of increased global competition.