Factors Affecting Centralized Government Procurement Performance: The Case of Public Procurement and Property Disposal Service (PPPDS)
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Date
2021-09
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Addis Ababa University
Abstract
Despite its importance, limited scientific research has been undertaken to examine the factors that influence
procurement performance in public institutions in Ethiopia specifically in Federal Public Procurement and
Property Disposal Service (PPPDS). This study will aim to ascertain the determinants of procurement
performance in public entities, a case of Federal Public Procurement and Property Disposal Service (PPPDS).
The objective of the study is to identify the factors that affect centralized public/government procurement
and examine if these factors predict procurement performance in federal PPPDS. The study employed a
quantitative research approach and utilized descriptive and exploratory design. Participants of the study
(n = 95) are employees of federal Public Procurement and Property Disposal Service (PPPDS) and
Beneficiary public organization and data were collected using semi-structured questionnaires. Results of
the study showed that procurement performance in PPPDS has better performance in terms of
purchasing the right price, from the right source and right quantity, however, its delivery of quality and
time is below standard. Moreover, factor variables that influence procurement performance in PPPDS
indicated that most of the respondents do not believe PPPDS’ procurement planning, organizational
structure, contract management-administration, and procurement measurement (with their mean values,
M < 3.00) practices and procedures fulfill basic requirements. In contrast, respondents believe that
PPPDS has a better reputation in resource allocation and centralized purchasing strategies (with their
mean values M > 3.00).
The correlation test shows that except for resource allocation and centralized purchasing strategies, the
other variables - procurement planning, organizational structure, contract management-administration,
and procurement measurement – have a direct and statistically significant influence on procurement
performance. Regression analysis indicated that procurement planning, organizational structure,
contract management, and administration and procurement measurement - jointly contribute 24.2% to
the model, however, the only organizational structure that has statistically significant predicting power
on procurement performance in PPPDS (β = 0.35, t = 2.72, p = 0.008). Finally, the limitations and
results of the study are discussed and possible recommendations are suggested.
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Keywords
Procurement Planning, Organizational Structure, Contract Management, Resource Allocation, Centralized Purchasing Bodies Strategies