The Effect of Procurement Procedures on Financial Performance: A Case of Fratelli Vanni Calzaturificio Footwear Company, Italy.

Abstract

The study investigated the effect of procurement procedures on financial performance at Fratelli Vanni Calzaturificio Footwear Company, Italy. The objectives of this study were; to examine the extent to which response rates in the implementation of procurement procedures affect financial performance at Fratelli Vanni Calzaturificio Footwear Company, Italy; to investigate the relationship between financial management in the implementation of procurement procedures and financial performance at Fratelli Vanni Calzaturificio Footwear Company, Italy; and to study the extent which the need for professionalism in procurement procedures implementation affect the financial performance at Fratelli Vanni Calzaturificio Footwear Company, Italy.

The study employed a case study research design in collecting relevant information. The total populations for this study were 41 respondents with a sample size of 41. Stratified and simple random sampling techniques were employed. Questionnaires were used as the main data collection instruments. Data was analyzed through descriptive statistics and later presented in frequency tables and percentages and pie chart. The study was carried out at Fratelli Vanni Calzaturificio Footwear Company, Italy. The study adopted lean theory to provide a relevance to the study. The statement of the problem mainly focused on major issues facing the procurement procedures and analyzes their effects on financial performance. Data was collected using a questionnaire and the findings were analyzed using both descriptive (frequencies and percentages) and inferential statistics (correlation analysis). The study established that professionalism, financial management and response rate were positively and highly correlated with financial performance. This meant that through professionalism, financial management and quick response rate, the organization can achieve its objectives which will lead to enhancement of financial performance. Professionalism was found to be crucial in any procurement procedure implementation in an organization. Therefore, it is very important for organizations to encourage professionalism and quality financial management in procurement of goods and services. They should also avoid low response rate in the implementation of the procurement procedures.