Strategic procurement and supply chain management and their impact on financial performance: Evidence from Sudanese enterprises

Abstract

This study examines how firms’ financial performance changes when they adopt strategic procurement and supply chain management practices, with a focus on how the interaction between these capabilities improves organizational outcomes. A quantitative research design was used based on survey data from 311 professionals across various business sectors. Descriptive analysis, correlation tests, regression models, and logistic regression were applied to examine the relationships among strategic procurement, supply chain management, and financial performance, and reliability and validity tests were conducted to evaluate the measurement model. The results show that both strategic procurement and supply chain management have a significant positive effect on financial performance, and that supply chain management strengthens procurement practices, indicating a complementary relationship between the two. Although convergent validity was acceptable, some cross-loading inconsistencies suggest that the measurement model requires improvement. Overall, the findings indicate that integrating procurement and supply chain systems enhances both operational and financial performance; however, the use of self-reported and cross-sectional data limits causal interpretation, and measurement issues highlight the need for refinement. Future research should adopt longitudinal designs, cross-industry comparisons, and objective financial data. This study contributes to the literature by demonstrating how procurement and supply chain capabilities jointly improve financial performance and offers practical implications for organizations seeking to enhance profitability through strategic integration.

Keywords Financial performance; Operational integration; Quantitative analysis; Strategic procurement; Supply chain management