Keywords
How to Cite
Abstract
This is a qualitative study to explore the procedures on contractual payment terms of Newmont Ghana as mining companies procure their goods and services through contractors/suppliers. Interviews were conducted with the three Contracts Administrators and complemented with archival records. The data analysis was inductive using thematic analysis from a constructivist viewpoint. The result reveals that contract requests, negotiations and evaluation were the bases for awarding a contract. The challenges have its root in non-compliance and communications gaps in the processes and procedures on contractual payment terms. The study concludes that there is a comprehensive laid-down procedure for how Newmont Ghana arrives at its payment terms. The study proposes that there must be effective coordination and collaboration between the Contracts department and the accounts payable office internally while externally Newmont must improve its supplier relationship management through best practices on account payables. Lessons learned with the prescription of four generic points to improve contractual payment terms of any organisation. This is one of the very few papers of a procedural study on contractual payment terms of contractors in the mining industry of Ghana using in-depth interviews and documentation reviews.
References
Abdul-Rahman, H., Kho, M., & Wang, C. (2014). Late Payment and Nonpayment Encountered by Contracting Firms in a Fast-Developing Economy. Journal of Professional Issues in Engineering Education and Practice. https://doi.org/10.1061/(ASCE)EI.1943-5541.0000189
Agambire, R., Mchunu, G. G., & Naidoo, J. R. (2022). Adolescent on the bridge: Transitioning adolescents living with HIV to an adult clinic, in Ghana, to go or not to go? PLoS ONE, 17(9), e0273999. https://doi.org/10.1371/journal.pone.0273999
Agarwal, U. A., & Narayana, S. A. (2020). Impact of relational communication on buyer-supplier relations satisfaction: role of trust and commitment. Benchmarking: An International Journal, 27(8), 2459–2496. https://doi.org/10.1108/BIJ-05-2019-0220
Aral, K. D., Beil, D. R., & Van Wassenhove, L. N. (2020). Supplier sustainability assessments in total cost auctions. Production and Operations Management, 30(4), 902–920. https://doi.org/10.1111/poms.13284
Bellon, M., Dabla-Norris, E., Khalid, S., & Lima, F. (2022). Digitalization to improve tax compliance: Evidence from VAT e-invoicing in Peru. Journal of Public Economics, 210, 104661. https://doi.org/10.1016/j.jpubeco.2022.104661
Ben-Shahar, O. (2004). Contracts without consent: Exploring a new basis for contractual liability. University of Pennsylvania Law Review, 152(6), 1829–1872. https://scholarship.law.upenn.edu/penn_law_review/vol152/iss6/1
Bojanc, R., Pucihar, A., & Lenart, G. (2024). E-invoicing: A catalyst for Digitalization and Sustainability. Organizacija, 57(1), 1–19. https://doi.org/10.2478/orga-2024-0001
Bozarth, C. C., & Handfield, R. B. (2019). Introduction to Operations and Supply Chain Management (Core Edition). Pearson Educational Limited.
Bulow, A. M., & Boje, D. M. (2015). The antenarrative of negotiation: On the embeddedness of negotiation in organizations. Journal of Strategic Contracting and Negotiation, 1(3), 200–213. https://doi.org/10.1177/2055563615610016
Chen, K., Wang, X., Zhu, X., & Amankwah-Amoah, J. (2019). To share or withhold? Contract negotiation in buyer-supplier-supplier triads. Industrial Management & Data Systems, 120(1), 98–127. https://doi.org/10.1108/IMDS-07-2019-0374
Cummins, J., & Clack, D. C. (2022). Transforming commercial contracts through computable contracting. Journal of Strategic Contracting and Negotiation, 6(1), 3–25. https://doi.org/10.1177/20555636211072560
Cuylen, A., Kosch, L., & Breitner, M. H. (2016). Development of a maturity model for electronic invoice processes. Electronic Markets, 26, 115–127. https://doi.org/10.1007/s12525-015-0206-x
Doxey, C. H. (2021). The New Accounts Payable Toolkit. John Wiley & Sons Inc.
El-adaway, I. M., Fawzy, S., Burrell, H., & Akroush, N. (2016). Studying Payment Provisions under National and International Standard Forms of Contracts. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000200
Fabrizio, N., Rossi, E., Martini, A., Anastasovski, D., Cappello, P., Candeago, L., & Lepri, B. (2019). Invoice Discounting: A Blockchain-Based Approach. Frontiers in Blockchain, 2, 13. https://doi.org/10.3389/fbloc.2019.00013
Fu, S., Han, Z., & Huo, B. (2017). Relational enablers of information sharing: evidence from Chinese food supply chains. Industrial Management & Data Systems, 117(5), 838–852. https://doi.org/10.1108/IMDS-04-2016-0144
Ganguly, K. K., & Roy, S. (2021). Supplier Satisfaction in Buyer-Supplier Relationships: Assessment from Supplier Perspective. Journal of Business-to-Business Marketing, 28(3), 247–264. https://doi.org/10.1080/1051712X.2021.1974167
Geipel, J. (2017). Local procurement in mining: A central component of tackling the resource curse. The Extractive Industries and Society, 4(3), 434–438. https://doi.org/10.1016/j.exis.2017.07.001
Gronmo, S. (2020). Social Research Methods: Qualitative, Quantitative and Mixed Methods Approaches. SAGE Publications Limited.
Guest, G., MacQueen, K., & Namey, E. E. (2012). Applied Thematic Analysis. SAGE Publications Limited.
Guest, G., Namey, E. E., & Chen, M. (2020). A Simple Method to Assess and Report Thematic Saturation in Qualitative Research. PLoS ONE, 15(5), e0232076. https://doi.org/10.1371/journal.pone.0232076
Heizer, J., Render, B., & Munson, C. (2020). Operations Management: Sustainability and Supply Chain Management (13th ed.). Pearson Education Limited.
Hesami, S., Jenkins, H., & Jemkins, G. P. (2024). Digital Transformation of Tax Administration: A Systematic Literature Review on E-Invoicing and Prefilled Returns. Digital Government: Research and Practice, 5(3), Article 18. https://doi.org/10.1145/3643687
IACCM. (2018). Most Negotiated Terms Report. IACCM Publications. https://www.worldcc.com/Portals/IACCM/Reports/Most-Negotiated-Terms-2024.pdf
Jääskeläinen, A. (2021). The Relational Outcomes of Performance Management in Buyer–Supplier Relationships. International Journal of Production Economics, 232, 107933. https://doi.org/10.1016/j.ijpe.2020.107933
Kaufmann, L., Schreiner, M., & Reimann, F. (2023). Narratives in Supplier Negotiations – The Interplay of Narrative Design Elements, Structural Power and Outcomes. Journal of Supply Chain Management, 59(1), 66–94. https://doi.org/10.1111/jscm.12280
Keay, A. (2015). Directors Negotiating and Contracting in the Wake of Their Companies’ Financial Distress. Journal of Strategic Contracting and Negotiation, 1(3), 214–230. https://doi.org/10.1177/2055563615610606
Knott, E., Rao, A. H., Summers, K., & Teeger, C. (2022). Interviews in the Social Sciences. Nature Reviews Methods Primers, 2, 73. https://doi.org/10.1038/s43586-022-00150-6
Lawrence, L. (2020). Conducting Cross-Cultural Qualitative Interviews with Mainland Chinese Participants during COVID: Lessons from the Field. Qualitative Research, 22(1), 154–165. https://doi.org/10.1177/1468794120974157
Lewicki, R. J., Barry, B., & Saunders, D. M. (2016). Essentials of Negotiation (6th ed.). McGraw Hill Education.
Li, S., Cui, X., Huo, B., & Zhao, X. (2019). Information Sharing, Coordination and Supply Chain Performance: The Moderating Effect of Demand Uncertainty. Industrial Management & Data Systems, 119(5), 1046–1071. https://doi.org/10.1108/IMDS-10-2018-0453
Lysons, K., & Farrington, B. (2020). Procurement and Supply Chain Management (10th ed.). Pearson Educational Limited. https://api.pageplace.de/preview/DT0400.9781292317939_A39573366/preview-9781292317939_A39573366.pdf
Magnusson, E., & Marecek, J. (2015). Doing Interview-Based Qualitative Research: A Learner’s Guide. Cambridge University Press. https://doi.org/10.1017/CBO9781107449893
Makkonen, H., Siemieniako, D., & Mitrega, M. (2023). Structural and Behavioural Power Dynamics in Buyer–Supplier Relationships: A Perception-Based Framework and a Research Agenda. Technology Analysis & Strategic Management, 35(9), 1099–1113. https://doi.org/10.1080/09537325.2021.1191574
Mauldin, R. L. (2019). Foundations of Social Work Research. Mavs Open Press. https://uta.pressbooks.pub/foundationsofsocialworkresearch/
Moberg, A., Borggren, C., Finnveden, G., & Tyskeng, S. (2010). Environmental Impacts of Electronic Invoicing. Progress in Industrial Ecology: An International Journal, 7(2), 93–113. https://doi.org/10.1504/PIE.2010.036044
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management (6th ed.). Cengage Learning. http://ndl.ethernet.edu.et/bitstream/123456789/23570/1/46%202009.pdf
O’Brien, J. (2016). Negotiation for Procurement Professionals (2nd ed.). Kogan Page. https://www.perlego.com/book/1015405/negotiation-for-procurement-professionals-a-proven-approach-that-puts-the-buyer-in-control-pdf
OECD. (2008). Enhancing the Role of SMEs in Global Value Chains. OECD Publishing. https://doi.org/10.1787/9789264051034-en
Patton, M. (2015). Qualitative Research & Evaluation Methods: Integrating Theory and Practice (4th ed.). SAGE Publications Limited. https://us.sagepub.com/en-us/nam/qualitative-research-evaluation-methods/book232962
Paulraj, A., Chen, I. J., & Lado, A. A. (2012). An empirical taxonomy of supply chain management practices. Journal of Business Logistics, 33(3), 227–244. https://doi.org/10.1111/j.0000-0000.2012.01046.x
Penttinen, E., & Hyytiainen, H. (2008). The adoption of electronic invoicing in Finnish private and public organizations. ECIS 2008 Proceedings, 79. https://aisel.aisnet.org/ecis2008/79
Poel, K., Marneffe, W., & Vanlaer, W. (2016). Assessing the electronic invoicing potential for private sector firms in Belgium. The International Journal of Digital Accounting Research, 16, 1–34. https://doi.org/10.4192/1577-8517-v16_1
Roehrich, J. K., Sarafan, M., Squire, B., Lawson, B., & Bouazzaoni, M. (2024). Conflict and Contract Use in Cross-Cultural Buyer-Supplier Relationships: The Role of Cultural Context. Production and Operations Management, 1–19. https://doi.org/10.1177/10591478241265481
Rogers, H., & Fells, R. (2017). Successful buyer-supplier relationships: The role of negotiations. Journal of Strategic Contracting and Negotiation, 3(3), 121–136. https://doi.org/10.1177/2055563618763037
Salami, S. S., & Abad, Z. S. (2023). Examining Instances of Surprising Contractual Terms and the Approach of International Commercial Documents. Journal of Research and Development in Comparative Law, 7(22), 1–24. https://doi.org/10.22034/LAW2024.2026824,1329
Salmony, M., & Harald, B. (2010). E-invoicing in Europe: Now and the future. Journal of Payments Strategy & Systems, 4(4), 371–380. https://doi.org/10.69554/TGYB1602
Schaeffer, M. S. (2007a). Controller and CFO’s Guide to Accounts Payable. John Wiley & Sons Inc. http://ndl.ethernet.edu.et/bitstream/123456789/158921/1/43.Mary%20S.%20Schaeffer.pdf
Schaeffer, M. S. (2007b). New Payment World: A Manager’s Guide to Creating an Efficient Payment Process. John Wiley & Sons Inc.
Schindler, P. S. (2019). Business Research Methods (13th ed.). McGraw-Hill Education.
Schoop, M. (2021). Negotiation Communication revisited. Central European Journal of Operations Research, 29, 163–176. https://doi.org/10.1007/s10100-020-00730-5
Schuhmann, R., & Eichhorn, B. (2020). Contractual Management: Managing through Contracts. Springer-Verlag GmbH.
Soper, C. H. (2022). Contractant behaviour in the pandemic: A real-world survey. Journal of Strategic Contracting and Negotiation, 6(2), 87–106. https://doi.org/10.1177/20555636221117774
Stone, R., & Devenney, J. (2015). The Modern Law of Contract (11th ed.). Routledge, Taylor & Francis Group.
Talay, C., Oxborrow, L., & Brindley, C. (2020). How Small Suppliers Deal with the Buyer Power in Asymmetric Relationships Within the Sustainable Fashion Supply Chain. Journal of Business Research, 117, 604–614. https://doi.org/10.1016/j.busres.2018.08.034
Teddlie, C., & Tashakkori, A. (2009). Foundations of mixed methods research: Integrating quantitative and qualitative approaches in the social and behavioral sciences. SAGE.
Tight, M. (2017). Understanding Case Study Research: Small-Scale Research with Meaning. SAGE Publications Limited.
Tiwari, A. K., Marak, Z. K., Paul, J., & Deshpande, A. P. (2023). Determinants of electronic invoicing technology adoption: Toward managing business information system transformation. Journal of Innovation & Knowledge, 8, 100366. https://doi.org/10.1016/j.jik.2023.100366
Van der Puil, J., & van Weele, A. (2014). The International Contracting: Contract Management in Complex Construction Projects. Imperial College Press.
Wang, M., Zhao, D., & Gu, F. F. (2021). Distributors’ customer-driving capability under supplier encroachment. Industrial Marketing Management, 94(4), 36–51. https://doi.org/10.1016/j.indmarman.2021.02.007
World Bank. (2015). A practical guide to increasing mining local procurement in West Africa. World Bank. http://documents.worldbank.org/curated/en/266701468119062079
Yin, R. K. (2018). Case Study Research and Application: Design and Methods (6th ed.). SAGE Publications Inc. https://uk.sagepub.com/en-gb/eur/case-study-research-and-applications/book250150
Zhang, H., Zhang, K., Warsitzha, M., & Trotschel, R. (2021). Negotiation Complexity: a review and an integrative model. International Journal of Conflict Management, 32(4), 554–573. https://doi.org/10.1108/IJCMA-03-2020-0051
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Copyright (c) 2025 Journal of Education, Management and Development Studies