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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Publisher

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

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