The Effect Of Procurement Management On Project Success: The Case Of Ethiopian Airlines

Abstract

The main objective of this study was to examine the effect of Procurement Management on Project success in the case of Ethiopian Airlines. This study was conducted using an explanatory research approach, and it falls under the category of causal research. Furthermore, the researcher utilised a combination of quantitative and qualitative study methodologies. To achieve the study objectives, the researcher developed and distributed questionnaires and collected and analysed the data with the SPSS version 20 tool by using descriptive and inferential statistics. The researcher employed Purposive sampling technique. To construct a sample, out of the total 110 projects, the researcher was chosen 5 projects, and 150 employees were chosen from a population of 4000 project employees, and 150 questionnaires distributed and 147 were collected, yielding a 98% response rate. The result of this study showed that all the procurement management variables used in this research have significant effect on project success. In addition, relatively procurement planning has greater effect, followed by procurement conducting process and procurement controlling process. According to the regression analysis's result, the independent factors are responsible for 56.9% of the variance in the dependent variable (organisational performance), with an estimated standard deviation of 0.53372. Around 9.4% of the variability in the dependent is attributed to the other variables that were not taken into account in this study. Depending on the result, it was concluded that procurement management has significant effect on project success. Finally, it was recommended to give due attention to all of the stages of procurement management and giving project procurement management training to both procurement staff and project managers. The researcher recommends future researchers to consider better sample size, other variables that are not included here and other projects in other wide organizations to get more result that was reliable.