Supplier development and organisational performance of agro-processing industries in Uganda, a case study of Kakira sugar works limited.

Abstract

This study examined the influence of supplier development on organisational performance at Kakira Sugar Works Limited, focusing on three specific objectives: to assess the effect of capacity building training, supplier relationships, and supplier engagement programs on organisational performance. The study was guided by Institutional Theory, which explains how organizations conform to environmental norms and pressures, and Empowerment Theory, which emphasizes capacity enhancement and collaboration as drivers of performance improvement. The research adopted a correlational descriptive design, using both quantitative and qualitative approaches. A sample of 70 respondents was selected through purposive and stratified random sampling from departmental employees and management. Data was collected using structured questionnaires, interviews, and document reviews. The tools were tested for validity through expert judgment (CVI = 0.89) and reliability using Cronbach’s Alpha (overall α = 0.79). Quantitative data was analyzed using descriptive statistics and Pearson’s correlation, while qualitative responses were thematically analyzed to complement statistical results. The findings showed a strong positive correlation between capacity-building training and organisational performance (r = 0.778, p < 0.01), confirming that training enhanced quality compliance, timely delivery, and operational efficiency. Supplier relationships also had a very strong positive correlation with organisational performance (r = 0.821, p < 0.01), indicating that strategic partnerships and trust-based collaboration significantly improved consistency in supply and competitiveness. Supplier engagement programs revealed a weak but significant positive correlation with organisational performance (r = 0.414, p < 0.05), indicating that while communication and feedback mechanisms improved accountability, their impact was less pronounced compared to training and long-term partnerships. The study concluded that supplier development was a critical determinant of procurement and operational performance in agro-processing industries, with training and strategic relationships exerting the greatest influence. It was recommended that Kakira Sugar Works should; institutionalize a structured annual training program focusing on quality standards, pricing, and procurement compliance, formalize long-term supply contracts with clear terms to enhance stability; and strengthen supplier forums and performance feedback systems to make engagement programs more impactful