The Effect of Procurement Practices on the Operational Performance of Airlines in Rwandair Ltd

Abstract

The main objective of this study was to assess the procurement practices and the procurement progress of RwandAir Ltd. The specific objectives were to establish the effect of procurement planning on the operational performance of RwandAir Ltd, the second one was to find out the effect of electronic procurement on the operational performance of RwandAir Ltd and the third one was to identify the effect of procurement evaluation on the operational performance of RwandAir ltd. Agency theory and Legitimacy, and Institutional theories are the theoretical foundation of this study. Procurement Practices are independent variables and procurement performance was an independent variable. The researcher used a quantitative method approach during analyzing of findings through Descriptive statistics using bivariate analysis. The target population was 44 permanent staff working in different departments. The sample size was all respondents 44 targeted, who determined by the use of a Census technique. The two data collection methods include a questionnaire survey and a secondary data sheet, which used for data collection. Primary data collected by structured questionnaire through a stratified sampling method. The validity of the research instrument determined used of content validity, while reliability was verified through the test-retest method. Data analyzed and organized by SPSS version 22. Data analysis was a quantitative data analysis method presented by descriptive and multiple regression statistics methods. The study showed that procurement planning, e-procurement, and procurement evaluation had countless roles towards on the operational performance of RwandAir Ltd. Findings showed that all predictor variables of procurement practices activities included: procurement planning (X1) Electronic procurement function (X2) and Procurement evaluation function (X3) positively and statically signifies operational progress in RwandAir Ltd between 2016 and 2021. This is established by the regression coefficients: (i) β1=.478 with p=.000<.05 at a 5% level of significance that shows that Procurement planning statically signified and positively influence operational progressive β2=.142with p=.002<.05 at a 5% level of significance, which shows that electronic procurement statically signifies and positively affect operational progress. β3=.412 with p=.000<.05 at a 5% level of significance, which shows that procurement evaluation then statically signifies and positively affect operational progress in RwandAir Ltd between 2016 and 2021. The research recommends RwandAir Ltd sustainably implement procurement practices theories that continue to support their operational performance. Keywords: Procurement Practices, Operational Performance, Rwanda Air, Rwanda