The Effect of Strategic Sourcing Practice on Organizational Performance: Sourcing Perception Survey of Amref Health Africa in Ethiopia
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Date
2017-06
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Addis Ababa University
Abstract
Strategic sourcing is a very crucial part of Supply Chain Management. This research was conducted to analyze the relationship between effect of strategic sourcing practice (measured in terms of supplier development, long-term relationship, effective procurement Planning and Communication), and organizational performance which is the operational performance in Amref Health Africa in Ethiopia. A descriptive correlation research design was used to achieve the purpose of the study. Owning to the small number of the total population, the study had employed census survey to quantitatively assess the supposed relationship between the dependent and independent variables. Questionnaire was used as the formal instrument of data collection. A total of 54 questionnaires were distributed and 52 of them were filled and returned to make the response rate about 96 percent. These samples were drawn from the total population using purposive sampling techniques. Moreover, the data gathering tools for this research were questionnaire and document analysis. Data collected using these instruments were analyzed using descriptive statistics and t-test. Finally, the study revealed that there was a statistically significant positive correlation between strategic sourcing practice (measured in terms of Supplier Development, Long-term Relationship, Effective Procurement Planning and Communication), and operational performance. And also it suggested that the levels of strategic sourcing practices and operational performance are moderate in the case of AHAE as the perceived evaluation of the respondents reply.
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Keywords
Operational Performance, Organizational Performance, Strategic Sourcing