The Effect of Procurement Practices on the Public Project Performance: The Case of North Showa Zone, Oromiya Region, Ethiopia

Abstract

The overall objective of this study was to assess the effects of procurement practices on the performance of public projects in the case of North Shoa Zone. The specific objectives of the study were, to find out the effects of procurement planning, supplier selection process, procurement contract management and procurement staff competency on the performance of projects. The study took a quantitative research approach and explanatory research design. A census sampling technique was employed to select 114 employees related to project procurement practices and project management as respondents. All of the questionnaires were submitted back for analysis, representing a response rate of 100%. A structured questionnaire was administered to collect data from the respondents. The data was finally analyzed using Statistical Package for Social Sciences (SPSS) V.28 to compute descriptive statistics such as the mean and standard deviation and inferential statistics like Pearson’s correlation analysis to obtain findings vital for the research study. In addition, regression analyses were conducted to estimate the average effects of procurement practices on public project performance. Majority of the respondents indicated that procurement practices affect project performance to a large extent. The regression analysis result indicated that procurement planning, supplier selection process, procurement contract management, and procurement staff competency had significant positive influence on performance of projects. The analysis further revealed that the four independent variables in this study accounted for around 68 % of change in project performance. It therefore recommended that implementing procurement practices effectively helps to improves projects performance.