Business and Economics Journal

Determinants of Procurement Performance in Arba Minch University

Abstract

Mulugeta Belayneh Birara* and Ashenafi Gizatu Gatiso

The main purpose of the study is to assess the determinants of procurement performance at Arba Minch University. In this study, the researcher tries to see the correlation between the independent variable (management style, organizational culture, Information Technology (IT) adaption, staff competency, stockholders commitment and records management) and dependent variable (performance of procurement with appropriate time, price, and quantity, quality, source, budget consumption, and contract management). The study assessed theoretical, empirical, and conceptual review of related literature. The research design was descriptive (frequency and percentage) and explanatory design (Pearson product-moment correlation and multiple linear regressions) analysis with the help of SPSS 20.0 software packages was used and also used mixed approaches (quantitative and qualitative research approach). The finding was assessed procurement performance strongly affected management style, staff competency, organization culture, stockholders commitment, IT adoption, and records management. The data gathering tools were primary and secondary data which were questioner and focus group discussion from 210 respondents using self-administered questionnaire and 57 interviewers and the final response rate was 90.16%. The correlation result (0.75) shows there is a strong correlation between the outcome variable and the predictor variable. The regression result (r2 =0.63) also shows predictor variables explain public procurement performance and except ICT adaption all predictor variables significant and high impact on performance and the reaming factors which account 0.36 which were unexplored variable affect procurement performance. The finding revealed that procurement performance was strongly affected by management style, staff competency, organization culture, stockholders' commitment, IT adoption, and records management. And the result of the finding shows in AMU there were to some extant problems in management style, staff competency, organization culture, stockholders' commitment, IT adoption, and records management which lead to less performance in public procurement.