The Effect of Procurement Practice on Organizational Performance: The Case of Ethiopian Defense Force Higher Educational Institutions
No Thumbnail Available
Date
2021-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
Procurement practices are fundamental activities in governmental and other community sectors because procurement procedure is commonly a serious part of organizations’ everyday expenses. The relationship of procurement to organizational performance, in particular, makes the acceptance of excellent practices to the success of organizations. This research required to study the effect of procurement practices on the organizational performance of Ethiopian Defense Force higher educational institutions to examine the procurement practices, determining the relationship between procurement practices and organizational performance, and finally identifying the challenges of procurement practices. The researcher used a descriptive and explanatory research design with the use of cross-sectional data. The target population was 68 selected Ethiopian Defense Force higher educational institutions procurement department only. Census sampling was applied because the target population is small in size. A questionnaire and interview were employed to collect primary data. From total respondents, 64 questionnaires were collected and analyzed representing a 94.1% response rate which was considered enough. A descriptive statistics data analysis and regression model presents the findings in tables and figures. The result showed that the Ethiopian Defense Force higher educational institutions were not well-practiced procurement and had not seen an improvement in their organizational performance. The effect of procurement practices on organizational performance in selected institutions was considered three organizational performance metrics; quality of goods/services, cost reduction, and lead time. The results indicated that procurement practices are positively related to organizational performance. The study also identified that the most challenges in the implementation of procurement were lack of proper training/inadequate human resource development and lack of resources to automate the procurement system. The researcher recommended that the selected institutions should give attention to all aspects of procurement practice to enhance better organizational performance.
Description
Keywords
Procurement Practices, Organizational Performance, Institution