Factors Affecting the Public Procurement Effectiveness: Evidence from Oromia National Regional State Public Sectors, Oromia, Ethiopia
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Date
2021-07
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A.A.U
Abstract
Public procurement is one of the main roles to government service delivery, yet
constraints affect its performance because procurement is perceived as prone to
corruption, waste, misuse & affecting quality and quantity of service resulting in poor
performance. The main objective of this study is to deal with factors that affect public
procurement effectiveness in Oromia public sectors. To achieve the specific goals of the
effect of procurement planning on procurement effectiveness, the effect of procurement
staff competency on procurement effectiveness, the effect of procurement procedure on
procurement effectiveness, the effect of procurement staff competence on procurement
effectiveness, the effect of resource allocation on procurement effectiveness were
examined. The researcher used sample from 186 employees in Oromia national regional
state public sectors using simple random sampling and primary data was collected
through standardized questionnaire. Moreover, explanatory design was employed to
identify the main factors that affect procurement effectiveness. The study also employed
econometric modeling of ordered logit to demonstrate the magnitude and economic
significance of the factors affecting procurement effectiveness. The finding implied that
procurement plan was potentially applied in the study area. However, based on the
ordered logistic regression and proportion regression results. Three of the independent
variables found positive and significant. As a result of ordered logistic regression
estimation Procurement staff competence variable found to have a positive and
significant relationship with dependent variable and Procurement procedure variable
found significant positive impact on the dependent variable. Similar to this, resource
allocation becomes significant and positive. Based on the results of the study, researcher
forwarded the following recommendation: procurement committee should have to assign
testing and inspecting team in Public Procurement and Property Disposal Service
procured items accordingly at the time of delivery and is advisable that giving Training in
order to boost the skills and competency levels required by staffs participated in the
procurement process and to become effective and efficient.
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Keywords
Procurement effectiveness, procurement planning, Procurement procedure, staff competency