Evaluation of Supplier Relationship Management and Competitive Purchasing Performance in the Ethiopian Commercial Bank Industry
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Date
2017-05
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Addis Ababa University
Abstract
The objective of this study was to evaluate the practice of supplier relationship management in the Ethiopian Commercial Banking Industry. Due to the small number of the total population, the study had employed census survey to quantitatively assess the relationship between the dependent and independent variables. Questionnaire was used as the formal instrument of data collection. A total of 52 questionnaires were distributed and 50 of them were filled and returned to make the response rate about 96%. The findings of the study suggested that the constructs of supplier relationship management have statistically significant relationship both with the compounded and individual measures of competitive purchasing performance though the strength of the relationship is relatively higher in the case of long-term relationship and logistics integration. The regression result also suggested that supplier development, logistics integration and long-term relationship have significant impact on determining banks competitive purchasing performance. It is suggested that Ethiopian Commercial Banks shall give special emphasis in the improvement of their practice in information sharing with their suppliers in particular and to all the perceived dimensions of supplier relationship management in order to drive competitive purchasing performance. Future studies shall be conducted by incorporating other variables that contribute to purchasing performance and also by considering the suppliers perception
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Keywords
Supplier Relationship, performance management, Competitive purchasing