Supplier development and performance of Kakira Sugar Limited, Uganda

Abstract

This research established the relationship between supplier development practices (supplier training, financial support, and firm–supplier involvement) and organizational performance at Kakira Sugar Limited (KSL). A quantitative, cross-sectional design was employed, with data collected through structured questionnaires from 34 respondents and analyzed using descriptive statistics, correlation, and multiple regression techniques. Findings reveal a strong positive link between supplier training and organizational performance (r = .715, p < .01), making it the most significant predictor (β = .458) in the regression model. Supplier financial support showed a moderate positive relationship (r = .576, p < .01), but was not significant predictor (β = .025). Meanwhile, firm–supplier involvement demonstrated a moderate positive relationship (r = .503, p < .01) and was a significant predictor (β = .274). Overall, supplier development explained 56.7% (R2) of the variation in organizational performance. Therefore, supplier training and firm–supplier involvement are key drivers of organizational success at KSL, whereas supplier financial support requires restructuring. The study recommends that KSL enhance its supplier training programmes, strengthen firm–supplier collaboration, and redesign its financial support system to better improve supplier capacity and organizational performance.