The Effect Of Foreign Purchasing On Operational Performance: In The Case Of Habesha Breweries Sc
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Date
2020-06
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Addis Ababa University
Abstract
The main objective of this research was to examine the effect of foreign purchasing on
operational performance of Habesha breweries S.C. with respect to foreign purchasing
dimensions of lead time of foreign purchasing, foreign exchange of foreign purchasing, and
optimal inventory of foreign purchasing. as a research approach, quantitative research
approaches were used in this study. As a research design the study employed causal research
also called explanatory research. Stratified sampling on a random sampling base was used to
select the appropriate samples of the study. In this study questionnaires were utilized as the
primary data gathering tool. The data were analyzed utilizing descriptive statistics, regression
analysis, and correlation, and then presented in tables. The finding of the study implies that all
of the independent variables were found to have a positive and significant correlation with the
dependent variable which is operational performance. The multiple linear regression analysis
revealed that, all independent variables (lead time of foreign purchasing, foreign exchange of
foreign purchasing, and optimal inventory of foreign purchasing) have a statistically significant
relationship to predict operational performance. Under the model summary of ANOVA test
result, the value of R and R2 obtained was statistically significant. The study concludes that, all
independent variables of foreign purchasing has a positive and significant effect on dependent
variable operational performance. Accordingly, this study recommends, since the results show
that there is a positive correlation between the independent variable (lead time of foreign
purchasing, foreign exchange of foreign purchasing and optimal inventory of foreign
purchasing) and the dependent variable operational performance, the manufacturing firm should
take in to account the variables considered.
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Keywords
Foreign purchasing, Lead time, Foreign exchange, Optimal inventory,, Operational performance