The Role of Procurement Practices in Hotel Performance Enhancement

Abstract

As a foremost factor of competitive edge, Procurement practices can be identified as a set of actions undertaken by a company to guarantee that its supply chain is managed properly, and they are crucial for maintaining a smooth operation and a healthy bottom line. This study aims to identify the impact of procurement practices on the hotel performance enhancement in Sri Lanka. This research examines and develops the notion of procurement practices such as, Buyer Supplier Relationship, Supplier selection procedures, Organizational capacity, and Procurement Process Management. A descriptive survey design was used in the study. The primary data was collected via a questionnaire from managers in the finance and procurement departments of 30 hotels around the country. The relationship between procurement practices and organizational performance was investigated using analytical tools such as Karl Pearson correlation and multiple regression analysis in this study with the support of Statistical Package for Social Sciences (SPSS). Moreover, financial performance was employed to quantify organizational performance in this study, and financial performance is a crucial component influenced by procurement procedures in Sri Lanka's hotel business. Consequently, this research provides a valuable insight for supply chain and procurement professionals to evaluate the comprehensiveness of their current procurement techniques in order to gain a competitive advantage.