Exploring the relationship between procurement management practices and project performance in the Somalia construction industry

Procurement encompasses the comprehensive process of sourcing, purchasing, receiving, and inspecting goods and services required for business operations, ranging from raw materials for manufacturing to software and office supplies. Over the past few decades, the rapid emergence of numerous construction companies in Somalia has been regarded as a positive development. However, many of these companies continue to face significant challenges, including high operational costs, delivery delays, and poor product quality, all of which are often attributed to ineffective procurement management. These challenges underscore the necessity for a deeper understanding of how various procurement practices influence project performance, particularly within the context of the Somalia construction industry. In response to this need, the present study explores the impact of four key procurement management practices of contract management, inventory management, needs assessment, and supplier sourcing on project performance in Somalia construction companies. Consequently, a quantitative research approach was employed, with data collected through questionnaires in numerical form. Responses were obtained from 132 participants across two major Somalia construction firms. The data were analyzed using SPSS for pilot reliability testing, and PLS-SEM was utilized to test the primary research hypotheses. The findings reveal that contract management, inventory management, and supplier sourcing practices significantly enhance project performance. However, the practice of needs assessment was found to have no significant effect on project performance. These results emphasize the importance of strengthening procurement management, particularly in the areas of contract management, inventory management, and supplier sourcing, as these practices have been shown to positively impact project performance in the Somalia construction sector. Finally, it is important to note that the findings may not be fully generalizable due to the limited sample size, which includes only two construction companies in Somalia.