Develop risk-based procurement management tools for SMEs

This paper provides guidance for developing risk-based management tools to improve the procurement (purchasing) performance of SMEs. Extant academic literature only offers little support on developing such tools and does not consider the wide variety of SMEs. The paper defines a procurement tool for SMEs as any structured managerial aid that one or more persons use for analysing, structuring or influencing the management and effective execution of activities within SME procurement processes. In the context of this research such tools are directed at identifying risks or uncertainties in procurement processes and at improving such processes through effective analysis and decision-making. The paper draws from SME and entrepreneurial literature related to strategy, sustainability, innovation or risk management, and from literature related to procurement management and maturity grids.
It discusses literature on developing management tools and criteria on assessing the quality of such tools. It discusses key aspects and organisational variables related to the application and adoption of such tools. It then presents a five-step instrument with guidelines and criteria to develop risk-based procurement management tools for entrepreneurs and SMEs. These guidelines are described as to be used in action research with student researchers and company research participants.