Role of International Management Contract in Corporate Strategic Goal Realization: The case of Ethiopian Electric Utility/EEU

Abstract

This survey research is an introductory study that has been planned to appraise the perceived strategic basis gained due to the ruling of a management contract in Ethiopian electric utility. With an objective to magnify the definite impact of management outsourcing on corporate performance, utility specific strategic dimensions are thoroughly considered to effect in decisional spectrum enabling to avail inductive recommendation as well as consultative reference for prospective undertakings and comparable future endeavors that other companies might foresee to participate in. Giving due concern on limited duration of the contractual time period inquiring instruments were devised in such a way that would make it possible to focus the assessment on how successful the outsourcing was to instill systematic organizational foundation and business baseline that ascertains utility’s tendency to continually attain the aspired strategic intents in the long run. The target populations of the study were 302 employees residing at various organizational positions and 15 of them have been top level and executive managers. While the staffs were selected deploying a stratified sampling technique, department heads and members of senior management were methodically specified from eligible functional divisions in alignment with the research scope. Depending on the very nature of this paper a descriptive study design was maintained to define the collection, measurement and analysis of data. The analysis outcome signified that the outsourcing of EEU’s management had varying magnitude of significance across range of corporate divisions and strategic themes under investigation. Among the four strategic intents considered; process excellence, sustainable growth and IT enablement (ongoing ERP project/future oriented) aspects have showed significant improvement as a result of the management outsourcing. As opposed to this customer centricity, capacity building and IT enablement (operational/current information system enrichment) pillars are not achieved to the expected extent, revealing insignificant association with management contract.