Factors Affecting Procurement Performance of an Organization: The Case of World Health Organization Ethiopia County Office
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Date
2022-06
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Addis Ababa University
Abstract
The main objective of the study was to examine factors affecting procurement performance of the organization the case of World Health Organization Ethiopia Country Office. The researcher identified eight independent variables that influence procurement performance based on literature reviews. These are: lack of procurement planning, lack of proper resource allocation, lack of staff competency, failure to follow proper procurement procedure, market environment related challenges, ICT related challenges, Political environment related challenges and Economic environment related challenges. The study's hypothesis was that procurement determinants (independent variables) influence WHO-Ethiopia office procurement performance (dependent variable). The research plan is built around descriptive and explanatory research methods. The researcher handed out 80 questionnaires, 60 of which were completed and returned. Throughout the study, both primary and secondary data were employed. Structured and semi structured questionnaires were created for primary data. The findings of this study show that the independent variables (lack of procurement planning, Lack of proper resource allocation) positively affect the dependent variable and (Political environment related challenges) negatively affect the dependent variable (procurement performance) with significant level P <0.005 while the remaining factors (Lack of Staff competency, Failure to follow proper procurement procedure, Market environment related challenges, ICT related challenges, Political environment related challenges and Economic environment related challenges) were the least determining factors of procurement performance with insignificant level P>0.005 respectively. The study recommends that, requesting units are responsible for developing acquisition plans in cooperation with Procurement Officials in a timely manner. Procurement plans should be developed in advance of each budgetary cycle to allow the concerned procurement office the necessary lead time to develop its procurement strategies, including the consolidation of requirements to leverage economies of scale and the organization can apply best value for money (the optimal combination of whole-of-life costs and quality/or fitness for purpose of the good or service to meet the user's requirement) principle which is one of the organization’s procurement principles and reduce process lead-time. The researcher recommends resource allocation must be utilizes using transparent information flow between the requesting unit and procurement team so that proper and sufficient budget allocation should be done to a specific task in a timely manner to avoid longer lead-time of procurement process. The researcher further recommends the organization to improve its working relationship with all stakeholders who are working closely with the organization or concerned government authorities, to create a conducive working environment. Key words: Lack of procurement planning, Failure to use proper resource allocation, lack of staff competency, Lack of procurement procedures, external environments related challenges.