An Investigation into Factors Affecting Supplier Selection and Performance in the Zambian Mining Industry: A Case Study of First Quantum Minerals Ltd

Abstract

This study investigated the factors influencing supplier selection and performance in the Zambian mining industry, focusing on First Quantum Minerals Ltd. The research aimed to examine the impact of cost considerations, quality and reliability, alignment of suppliers’ capabilities with Organisational needs, and sustainability practices on supplier performance, with supplier selection serving as a moderating variable. A mixed-methods research design was employed, incorporating quantitative data from structured surveys administered to 280 respondents and qualitative data from interviews with key stakeholders. The findings revealed that cost considerations were pivotal in supplier selection, with a strong positive correlation (r = 0.879, p < 0.000) and a significant regression impact on supplier performance (β = 0.879, Sig. = 0.000). This demonstrated the importance of competitive pricing as a key determinant in supplier evaluation. Quality and reliability emerged as the most critical factors influencing supplier performance, exhibiting the highest correlation (r = 0.932) and a robust regression coefficient (β = 1.000, Sig. = 0.000). The study also found that aligning suppliers’ capabilities with Organisational needs moderately influenced supplier selection (r = 0.860) but did not directly impact performance (Sig. = 1.000). Qualitative findings highlighted that while alignment is essential for ensuring a strategic fit, its effectiveness depends on integration with innovation and adaptability. Sustainability practices gained prominence, reflecting an industry-wide shift toward environmentally responsible supplier partnerships. With a strong correlation (r = 0.921) and a significant regression impact on performance (β = 1.333, Sig. = 0.000), the study emphasized that sustainable practices are increasingly crucial for long-term value creation and operational resilience. The study recommends that mining companies integrate sustainability criteria and long-term relationship considerations into supplier evaluation frameworks. Such a strategy would enhance operational efficiency, build resilient supply chains, and support sustainable growth in the mining industry. Keywords: Supplier Selection, Supplier Performance, Mining Industry, First Quantum Minerals Ltd, Cost Considerations, Quality and Reliability, Sustainability Practices, Zambian Mining Sector, Relationship Management