EFFECT OF SUPPLIER SELECTION MANAGEMENT ON THE PERFORMANCE OF CONSTRUCTION COMPANIES IN RWANDA. A CASE STUDY OF ROCK HILL CONSTRUCTION COMPANY LTD IN KIGALI, RWANDA

Abstract

The objective of the study is to examine the effect of supplier selection management on the performance of Rock Hill construction company ltd in Kigali. The study adopted a mixed research design which included descriptive survey and correlation. The target population was 124 employees from all departments in Rock Hill Construction Company where census approach was adopted. For primary data questionnaires were used for data collection instruments and were in form of a five Likert scale with close ended questions. Validity of the instruments was measured using a team of experts in the field of project management. Data was analyzed using qualitative and quantitative methods using SPSS version 21. Multiple regression model and correlation coefficient were used. The results reveal that effective supplier selection management positively impacts the performance of the construction company. The study finds that factors such as supplier reliability, quality of materials, cost-efficiency, and timely delivery significantly influence project performance. Furthermore, the qualitative insights shed light on the strategies and challenges encountered by Rock Hill Construction Company Ltd in managing its supplier selection process. The study reveals that supplier selection management shows a modest positive effect on performance (Beta = 0.108, p = 0.047). This research contributes to the understanding of how supplier selection management can be a key determinant of success in the construction industry and offers practical recommendations for enhancing supplier-related decision-making processes to improve overall company performance. Furthermore, the research identifies key factors affecting supplier selection, including financial stability, reliability, and compliance with industry regulations. The study further recommends that the Rock Hill construction company ltd in Kigali should ensure full adoption of supplier selection practices in procurement and supply chain departments. Keywords: Supplier Selection Management, Organization Performance, Rock Hill Construction Company CITATION Murekatete, Z., & Dushimimana, J. D. (2023). Effect of supplier selection management on the performance of construction companies in Rwanda. A case study of rock hill construction company ltd in Kigali. The Strategic Journal of Business & Change Management, 10 (4), 189 – 200. http://dx.doi.org/10.61426/sjbcm.v10i4.2743.