Browsing by Author "Michael Abbi"

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    The Effect of Contract Management on Public Procurement Performance: The Case of Ethiopian Sugar Industry Group
    (Addis Abeba Universty, 2026-09) Michael Abbi; Tariku Jebena(PhD)
    Effective contract management is a fundamental prerequisite for public enterprises seeking to optimize resource utilization, reduce procurement costs, and deliver satisfactory services. This study examined the effect of contract management on procurement performance within the Ethiopian Sugar Industry Group (ESIG). The specific dimensions of contract management investigated were contract administration, contract dispute resolution, contract relationship management, contract monitoring, and contract evaluation, with procurement performance measured by cost efficiency, quality, lead time, and on-time delivery as the dependent variable. The study was guided by Transaction Cost Theory, Public Contract Theory, Relational Contract Theory, and Agency Theory. A mixed-methods research approach employing both descriptive and explanatory (causal-comparative) research designs was adopted. The descriptive component sought to characterize the current state of contract management practices in the ESIG, while the explanatory component investigated the causal relationships between specific contract management dimensions and procurement performance outcomes. The target population comprised 139 employees of the ESIG head office, drawn from the procurement, finance, legal, project machinery, factory construction, and administration departments. A sample of 126 respondents was determined using the Yamane (1967) formula, and participants were selected through stratified random sampling. Primary data were collected via a structured seven-point Likert-scale questionnaire, achieving a response rate of 88.1% (111 questionnaires returned). Cronbach's Alpha values ranged from 0.655 to 0.866, confirming acceptable reliability across all constructs. Data were analyzed using descriptive statistics, Pearson moment correlation, and multiple linear regression using SPSS. The results reveal a statistically significant positive relationship between contract management practices and procurement performance (R = 0.723, R² = 0.522, F (5, 103) = 22.511, p < 0.05). Contract administration (β = 0.287, p < 0.05), contract dispute resolution (β = 0.188, p < 0.05), contract monitoring (β = 0.410, p < 0.05), and contract evaluation (β = 0.331, p < 0.05) were significant positive predictors of procurement performance. However, contract relationship management exhibited a statistically insignificant and slightly negative relationship with procurement performance (β = −0.074, p > 0.05), suggesting the need for a revised strategic approach in this dimension. The study concludes that strengthening contract management practices particularly contract administration, dispute resolution, monitoring, and evaluation will significantly improve procurement performance in the ESIG and, by extension, in comparable Ethiopian public enterprises. Policy recommendations include mandatory contract management training programs, improved documentation and record-keeping systems, and the development of robust dispute resolution frameworks aligned with national procurement regulations