The Effect of E-Procurement Practices on The Supply Chain Performance of The Ethiopian Airlines Group
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Date
2024-10
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Addis Ababa University
Abstract
Electronic procurement platform adoption enables the organization to improve its supply chain performance. However, the advantages of electronic procurement have varied depending on the implementation context. The title of the study was Effect of Electronic Procurement Practices on Supply Chain Performance of the Ethiopian Airlines Group. The study aimed to assess the association between E-procurement practices and Ethiopian Airlines Group's Supply Chain performance. In this study, the Supply Chain performance in terms of cost, quality, and delivery were the dependent variables and E-procurement practices consisting of E-sourcing, E-information, E-ordering, E-invoicing, and E-payment were the independent variables. The scope of the study was limited to Ethiopian Airlines Group Procurement and Supply Chain Management, Addis Ababa Ethiopia. The study utilized explanatory and descriptive research designs and a quantitative approach. Regarding sample size, 172 respondents were selected and approached from the total number of 301 populations. The primary source of data was used, the data were gathered through questionnaire surveys. The data was analyzed by using inferential statistics, SPSS version 25 software. Content validity was addressed by involving expert respondents, reviewing the literature, adopting previously used instruments, and pretesting the questionnaire before releasing it. Cronbach’s alpha statistics were conducted for the reliability test. The result revealed E- sourcing, E-information, E-ordering, E-invoicing, and E-payment are highly practiced by the Ethiopian Airlines Group's Supply Chain department. Furthermore, the hypothesis testing result showed that E-ordering and E-invoicing positively and significantly affect Ethiopian Airlines' supply chain performance. E-sourcing, E-information, and E-payment have less effect on the supply chain performance. The study recommends that Ethiopian Airlines focus on the fully effective and efficient automated E-ordering, and E-invoicing of e-procurement practices, as well as exhaustively work on the E-sourcing, E-information, and E-payment aspects to minimize the supply chain gaps and entirely enhance the supply chain performance in terms of cost, quality, and delivery. Besides, the study recommends further research assessing the effect of E-procurement practices on the SC performance in other case organizations by including other SC performance indicators and fixed research methods.
Keywords: E-procurement, Supply Chain Management, and performance.