The Impact Of Procurement Risk Management Framework On The Automotive Industry Sector Performance

The automotive industry in Somaliland was highly dependent on complex international supply chains, making it vulnerable to various procurement risks. This study examined the impact of a Procurement Risk Management Framework (PRMF) on the organisational performance of MATCO Motors in Hargeisa. The study aimed to achieve three specific objectives: to examine the effect of risk identification on operational performance, to analyse the influence of risk assessment on financial performance, and to determine the impact of risk mitigation on customer satisfaction. Adopting a positivist research philosophy, the study utilized a sequential explanatory mixedmethods research design. The target population consisted of 41 employees from the procurement, sales & marketing, finance, and other departments of MATCO Motors. A sample size of 38 respondents was determined using Slovin’s formula. Quantitative data was collected via structured questionnaires and analysed using descriptive statistics and multiple regression analysis via Jamovi. Qualitative data was gathered through purposive interviews with management and analysed via thematic analysis. The outcome of this research was a validated framework that identified critical risk factors within the Berbera Corridor and their direct correlation to MATCO’s performance. The study contributed to the Resource-Based View of the firm by demonstrating how internal risk management capabilities served as a strategic resource in emerging economies. Practically, it provided a blueprint for reducing lead times and financial leakage in the Somaliland automotive sector.