PROCUREMENT ETHICS AND ORGANIZATIONAL PERFORMANCE OF SMES IN NIGERIA

Abstract

Ethical conduct in procurement is essential for maintaining transparency, integrity and fairness in the procurement process. Business ethics and professionalism play a vital role towards the success, sustainability and reputation of an organization. Ethics are moral principles and values that guide individuals and organizations in making decisions and conducting their actions. On the other hand, procurement is a continuous management process or function responsible for anticipation, identification and provision of materials, supplies, equipment, services and projects that are required by an organization for its operations. In both public and private sectors, procurement takes up to 70% of their expenditure. Hence the need for procurement ethics and professionalism. The aim of study was to investigate the effect of procurement ethics on organizational performance of small and medium enterprises in Nigeria. Descriptive survey design was adopted for this study and the population of the study comprised of all the procurement managers, senior procurement and finance personnel of all SMEs in Lagos with infinite figure. Consequently, convenient sampling techniques was used to select a sample size of 42 respondents. Data collected was analyzed with the aid of SPSS, using both descriptive and inferential statistics and presented in tables. Findings revealed that transparency, integrity and accountability resulting from procurement ethics did not have significant effect on organizational performance of SMEs in Nigeria. Base on this, the study recommended that managers of SMEs in Nigeria should review and scale up their ethical procurement process and professionalism. Also policies should be put in place to guide ethical behavior of procurement personnel and measures that promote employees adherence to set ethical code and professional practice.