The Impact of Procurement Practices on Organizational Performance: A Literature Review

Abstract. Effective procurement practices play a critical role in the successful functioning of organizations and directly impact their overall performance. However, many organizations
struggle to optimize their procurement processes to achieve desired performance outcomes. This study aims to comprehensively review the existing literature on the impact of
procurement practices on organizational performance and identify gaps in the current knowledge base. A systematic evaluation was conducted on published studies between 2017
and 2022. Two authors independently assessed study eligibility, extracted relevant data, and evaluated the risk of bias and study quality. Initially, 1639 references were retrieved, but after applying inclusion criteria and eligibility assessment, only 15 articles were deemed suitable for analysis. The selected articles were thoroughly examined to analyze and synthesize their objectives, methodologies, outcomes, and recommendations. The findings highlight that effective procurement practices enable organizations to secure high-quality goods and services, foster strategic supplier partnerships, and gain a competitive advantage in the
marketplace. Conversely, inadequate procurement practices have detrimental effects on overall organizational performance. Furthermore, the study reveals that organizations face significant challenges in optimizing their procurement practices, directly impacting their overall performance. These findings underscore the importance of addressing procurement practices as a critical factor in enhancing organizational performance. Overall, this study
contributes to understanding the relationship between procurement practices and organizational performance. It highlights the benefits of effective procurement strategies and
emphasizes the risks associated with suboptimal practices. By identifying gaps in the existing literature, this study also provides a foundation for future research to address these gaps and further advance knowledge in this field