The Effects of Foreign Procurement on Operational Performance of Ethiopian Airlines Maintenance, Repair and Overahoul Service.
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Date
2024-06
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Addis Ababa University
Abstract
The primary goal of this study is to examine the effect of foreign procurement on the operational performance of Ethiopian Airlines MRO services, focusing on the dimensions of supplier sourcing, information sharing, inventory management, and supplier relationships. The study was used explanatory research design and quantitative research approaches. The accessible population of the study was employees who work for the Ethiopian airlines MRO shops and PSCM departments. A stratified random sampling technique was used to select appropriate respondents from the accessible population. The primary data were gathered through structure questionnaire and analyzed through descriptive, regression and correlation statistics. The findings reveal a significant and strong correlation between foreign procurement and the company's performance. The study concludes that supplier sourcing, information sharing, and inventory management significantly enhances the operational performance of Ethiopian Airlines MRO services. Effective procurement strategies, robust information exchange, and efficient inventory practices are critical to the success of MRO operations. Despite the traditional emphasis on supplier relationships, this study found that they do not significantly impact on operational performance. Among the factors, information sharing emerged as the most influential on operational performance. Each dimension was found to have a statistically significant influence on the company's performance individually. Based on the findings, the practical implications of this study suggest that to ensure the operational performance of Ethiopian Airlines MRO services, the company should focus on improving inventory level management practices, continue to develop and refine procurement strategies, and invest in continuous training and development programs to enhance skills and knowledge, particularly in areas related to supplier sourcing and inventory management. By addressing these areas, Ethiopian Airlines MRO services can further improve its operational performance and maintain its competitive edge in the aviation industry.
Keywords: Foreign procurement, Operational performance, Ethiopian Airlines.