“Effects of Procurement Practices on Organizational Performance: The Case of Ethiopian Roads Administration”
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Date
2024-06-02
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A.A.U
Abstract
Procurement is one of the prominent drivers of growth and development in any country. It even plays a vital role in the road sector, as most public procurement activities in the sector come through project delivery systems. This research investigates the effect of procurement practices on the organizational performance of Ethiopian Roads Administration (ERA). The study adopted an exploratory research design along with quantitative research approach. Both primary and secondary data were used to accomplish its objectives. A structured questionnaire that utilized a five-point Likert scale was distributed to 142 employees across five directorates that were directly involved in the procurement process of the organization. 107 questionnaires were returned and analyzed using IBM SPSS statistics 27 software. Descriptive statistics such as frequency, mean and standard deviation, as well as inferential statistic, particularly correlation and multiple regression analysis were used to analyze the questionnaires. The findings revealed that all procurement practices had positive and significant relationship with organizational performance. Ethical practice, buyer to supplier relationship, and procurement planning had a high correlation to organizational performance while organizational capacity and contract management had a moderate correlation. The study recommends ERA to use historical data from other similar projects when trying to forecast their schedules and costs during their planning phase, put adequate efforts on employing better human and technology resources and apply better contract management practices in order to boost their organizational performance.