Purchasing Practice and the Performance of Small Medium Enterprise in Services Sector in Selangor

This study was to examine the relationship between purchasing practices and Small Medium Enterprise's performance in services sector in Selangor. To achieve the research objective, a survey involving distribution of questionnaires to 86 SMEs companies those involved in food services, photography, laundry, retail and transportation services in Selangor area. The survey was carried out from the month of November 2009 to December 2009. Out of 86 questionnaires sent, only 68 were returned for data analysis. All questionnaires received were complete and answered accordingly without missing data. Twenty eight questions inclusive five dimensions of purchasing (i.e. characteristic of organization's purchase, purchasing characteristic, sourcing strategy, buyer-supplier relationship and supplier selection) were asked. The study found that in general, staffs had favorable opinion with regard to purchasing practiced in their organization. The result from the survey shows that most of the respondents gave full support towards purchasing practice in their organization. Based on the findings, it is believed that purchasing practice in SMEs was played the important role to the performance of the company.