A taxonomy of strategic sourcing for defense forces in sub-Saharan Africa
| DOI | https://doi.org/10.1108/WJEMSD-02-2013-0019 |
| Published date | 24 January 2014 |
| Date | 24 January 2014 |
| Pages | 13-32 |
| Author | Joseph Mpeera Ntayi,Ephraim Mugume |
| Subject Matter | Strategy,Business ethics,Sustainability |
A taxonomy of strategic sourcing
for defense forces in sub-Saharan
Africa
Joseph Mpeera Ntayi
Faculty of Computing and Management Science,
Makerere University of Buisiness School, Kampala, Uganda, and
Ephraim Mugume
Peoples Defence Force (UPDF), Kampala, Uganda
Abstract
Purpose – The purpose of this paper is to provide a taxonomy of strategic sourcing using the defense
forces from a developing world context as a testing ground. This study builds upon the current
resource-based conceptualization of strategic sourcing as a construct to introduce the institutional
orientation.
Design/methodology/approach – This study adopts a descriptive and analytical research design
of cross-sectional nature to collect data from a sample of 120 respondents to examine the taxonomy
of strategic sourcing for defense forces in sub-Saharan Africa. Data were collected using an
interviewee administered questionnaire and analysed using a confirmatory factor analysis (CFA).
The conceptualization of strategic sourcing is presented using a CFA.
Findings – Findings reveal that strategic sourcing is a multidimensional construct composed of:
information sharing and risk management, strategic purchasing, institutions for sourcing, internal
integration and performance assessment ,su pplier management and sourcing professionalism and ethics.
Research limitations/implications – The study used cross-sectional research design which
limits monitoring behaviour over time. Cross-sectional data do not allow control in the analysis for
residual heterogeneity. Additionally, all item scales adapted in this study were developed in either
manufacturing or profit-oriented sector.
Originality/value – A taxonomy for strategic sourcing within the defense forces is presented.
This study is based on the observation that despite increased research, there remains a certain level of
confusion surrounding the conceptualization of “strategic sourcing”. Researchers attach a startling
diversity of definitions and measures to the strategic sourcing concept. Its conceptualization and
stability remains an important task for scholars to undertake. Besides, much research in strategic
sourcing, are conceptual frameworks identifying key elements and procedures or processes to
implement strategic sourcing with sparse empirical studies. The results of the study will be used for
further research on strategic sourcing in the defense forces in sub-Saharan Africa.
Keywords Ethics, Supply chain management, Developing countries, Strategic sourcing
Paper type Research p aper
Background
Strong pressure from the international donor community and aid agencies to cut costs,
improve service delivery and accountability of public resources has awakened the
government of Uganda to professionalize, modernize and restructu rethe army, defense
logistics and sourcing (Government of Uganda, 2004a). In an effort to suppo rt the
reorganization of the armed forces’ service composition, force posture, deployment and
geographic concentration, the Uganda Peoples Defence Forces (UPDFs) has changed
its orientation from mere sourcing to strategic sourcing. This approach is meant to
build institutional competence and accountability in public procurement. The public
procurement spend on security by the Ministry of Defense (MOD) averages 2 per cent
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/2042-5961.htm
Received 15 February 2013
Revised 15 February 2013
Accepted 12 March 2013
World Journal of Entrepreneurship,
Management and Sustainable
Development
Vol.10 No.1, 2014
pp. 13-32
rEmeraldGroup PublishingLimited
2042-5961
DOI 10.1108/W JEMSD-02-2013-00 19
13
Defense forces
in sub-Saharan
Africa
GDP per annum (Government of Uganda, 2004a). Such a huge public procu rement
requires a clear conceptualization of the strategic sourcing construct whose imp ortance
has increased over time (Krause et al., 2001). The importance of strategic sourcing is
supported by Zhou and Benton (2007).
A review of extant literature reveals that, the construct of strategic sourcing has
received wide attention from supply chain literature (e.g. Henderson, 1975; Hill, 1975;
Boffey, 1975) but with little shared precise understanding of its meaning and its
constituents (Rawlinson and Howie, 2007). For example, Carr and Pearson (1999) define
strategic sourcing as the recognition of the strategic role of suppliers as a source of
competitive advantage, while Lang et al. (2002) summarize strategic sourcing as a
combination of supplier selection, supplier evaluation and supplier development. Such
conceptual differences influence construct validity, makes research findings
incomparable and organizations run a risk of ending up with a series of tactical
operating models that may deliver short-term cost benefits but that lock in existing
inefficiencies and fail to address the root causes of poor performance (Rawlinson and
Howie, 2007, p. 2). Additionally, studies conducted from the public sector specifically
from the defense forces can easily be assessed using instruments that may not always
reflect properties of a specificsample. A review of practicereveals that strategicsourcing
of military equipment in Uganda has proven to be problematic, resulting into cases of
unreliable and wrong supply of ammunition, uniforms, drugs, food and other essential
supplies that have hampered the progress of operations and force sustainability.
This state of affairs could be attributed to the fact that most of the spending under
this sector is classified, meaning that their audits are not made public. This raises the
question of efficiency and effectiveness in the utilization of public funds allocated to the
defense sector. For instance, an official audit done in 2004 showed that the UPDF was
up to 20 per cent below its authorized strength due to corruption of officers claiming
the pay of over 10,000 non-existing soldiers (ghost soldiers) and “air-supplies” (literally
meaning non-existent supplies) (Lukwago, 2010, p. 3). Addition al information reveals
that in 1998, Uganda purchased four faulty MI-24 helicopters (commonly referred to as
“junk choppers”) together with their spares and ammunition at a cost of $12 million.
According to http://williamkituuka.blogspot.com/2011/06/president-musevenis-
shs17trillion.html, there have been a myriad military equipment purchases that have
cost the taxpayer millions of dollars, including a consignment of malfunctioning guns
from South Korea and an order of undersize army uniforms. The army also bought 90
tanks from Bulgaria, only ten of which proved operational.
This study aims at developing a framework of what constitutes strategic sourcing
for public institutions that want to improve efficiency and effectiveness in service
delivery. This studybuilds upon the current resource-based conceptualization of strategic
sourcing as a construct and introduces an institutional orientation that has been largely
ignored in previous studies in strategic sourcing.It is then within the scope of thisstudy
to add informationand utility to the conceptualizationof strategic sourcing. In examining
the taxonomy of strategic sourcing, key theoretical underpinnings and methods from
previous scholars are utilized. This is necessitatedby the fact that strategic sourcing has
continued to increase in importance (Krauseet al., 2001) and so is the need to enhance the
extant body of knowledge to offer theoretical and pragmatic insights. This need is
supported by the StockholmInternational Peace Research Institute (2003) which reveals
that reliable military expenditure data promote democratic discussion of: resource
allocation,security needs, the role and tasks of the militaryand feedback mechanism for
strategic management of the defense forces.
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WJEMSD
10,1
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