Determinants of Key Account Management Effectiveness: The Case of Ethio Telecom
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Date
2014-06
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Addis Ababa University
Abstract
This study aims to address primarily the determinants of key account management effectiveness
in the context of Ethio Telecom and additionally to assess the company’s KAM implementation
practice. A conceptual model of factors that affect KAM effectiveness was developed and
hypothesized. The hypotheses were tested with data collected from 35 key players in the key
account department of Ethio Telecom using structural equation modeling. To evaluate the
company’s KAM implementation practice, unstructured equation was used. The findings of this
study show that from the postulated seven determinants of KAM effectiveness (strategy, solution,
people, management, screening, government, and culture), the three (solution; management; and
screening) were found significant determinants. In relation to the second objective, in Ethio
Telecom a dominantly sales orientation KAM approach has been practiced in which the key
account managers and sales executives give much emphasis on meeting targets. The criteria
used to label ‘key account’ status are so open that any big business (in terms of capital, number
of employee), or international organization or government administrative (higher level) can join
the status that makes the number of key accounts increase overtime. The scope of the study is
limited to a single telecom operator company in Ethiopia; but the findings can also have
practical use in other industries that have business customers. The study is presented and
analyzed from the perspective of the supplier. The findings provide the empirical application of
the KAM model theorized by Zupancic (2008) by incorporating two additional external factors
proposed to determine KAM effectiveness. The study contributes to the improvement of KAM
implementation in Ethio Telecom particularly
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Keywords
Key accounts, key account management, KAM effectiveness