Entrepreneurial competence and supply chain value creation in local procurement

Abstract

The purpose of the study was to investigate how resource-constrained suppliers that are participating in local procurement create supply chain value. The study investigated supply chain performance by testing the relationship between entrepreneurial competences and supply chain value. Feedback from a cross-sectional survey of 294 suppliers in construction, furniture and fitting and agricultural sector was utilised to test hypothesised relationships. The study employed factor analysis and structural equation modelling (SEM) to conduct analysis. The results revealed that building value-driven supply chains in Uganda's local procurement context requires specific competences that have an integrative role. The competences that are valued in integrating local supply chain activities include; opportunity competence and commitment competence. Both innovativeness and analytical competences are not common among local entrepreneurs. Focus should be given to developing competences in identifying and developing new market opportunities, establishing and managing long term relationships with suppliers and integrating new supply chain actors.