Regulatory compliance and procurement practices: insights from pharmaceutical companies in Kumasi

Purpose This study aims to investigate why and how compliance with local and international regulations affects supplier selection, contract management, inventory management, cost control and sustainable procurement practices. Design/methodology/approach This research adopts a quantitative research design using structured questionnaires. Data collection is conducted through face-to-face, online surveys and document reviews. Findings The findings reveal that regulatory compliance has a significant influence on supplier selection practices. Also, it is found that regulatory compliance has a significant influence on contract management practices among pharmaceutical companies in Kumasi. Furthermore, regulatory compliance has a significant influence on inventory management practices. Additionally, regulatory compliance has a significant influence on cost control practices. Finally, regulatory compliance has a significant influence on sustainable procurement practices. Practical implications The research highlights the crucial role of regulatory compliance in ensuring efficient procurement practices within the pharmaceutical industry. For practitioners, it provides actionable insights into how compliance can be integrated into procurement activities. For policymakers, it emphasizes the need for stronger regulatory standards and support mechanisms for small- and medium-sized enterprises in the pharmaceutical sector. Originality/value This research adds value to the existing body of literature by examining the link between regulatory compliance and procurement practices in the pharmaceutical industry in an emerging market. Its originality lies in its examination of how regulatory frameworks shape procurement decisions in a highly regulated industry, providing practical insights for both industry players and regulatory authorities.