The Effect Of Foreign Purchase On Manufacturing Performance Of Ethiopian Manufacturing Sector: In The Case Of Senselet Food Processing Plc
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Date
2019-02
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Addis Ababa University
Abstract
The objective of this study was to identify the effect of foreign purchase on manufacturing
performance. The research was based on private manufacturing sector. The research questions
were presented in order to identify supplier selection of foreign purchase on manufacturing
performance; the effect of contract management of foreign purchase on manufacturing
performance and the effect of buyer-supplier relationship of foreign purchase on manufacturing
performance. The study employed an explanatory research design. Out of the study population of
255 employees of the manufacturing sector, a sample size of 155 was taken, whose elements was
selected using a probability sampling technique called stratified sampling on random sampling
base. Questionnaires were used as the primary data collection instrument. The response rate
was 92%, with 143 questionnaires properly filled out of the distributed 155 questionnaires. The
research approach was quantitive research approach and data was analyzed using descriptive
statistics, correlation and regression analysis and then presented in tables. The finding of study
implies that supplier selection of foreign purchase insignificant effect on manufacturing
performance, contract management of foreign purchase has positive and significant effect on
manufacturing performance and buyer-supplier relationship of foreign purchase has positive
and statistically significant effect on manufacturing performance. This study recommends, since
the results shows that there is a positive correlation between the independent variable (supplier
selection of foreign purchase, contract management of foreign purchase and buyer-supplier
relationship of foreign purchase) and the dependent variable manufacturing performance, the
manufacturing firm should take in to account the variables considered. In this study 82.9 % of
the variance in dependent variable (manufacturing performance) is explained and predicted by
independent variables (supplier selection, contract management and buyer-supplier
relationship). So that other interested researcher could identify another predictor and study
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Keywords
Foreign ,Purchase, Manufacturing, Performance