RELATIONSHIP BETWEEN STRATEGIC SOURCING AND OPERATIONAL PERFORMANCE OF BANKS IN ETHIOPIA: THE CASE OF AWASH BANK S.C

Abstract

The purpose of this study is to critically analyze the Relationship between Strategic Sourcing and Operational Performance of Banks in Ethiopia- A case study on Awash Bank. The study employed both primary and secondary sourcing of data. Primary data was collected through questionnaire and interviews. Questionnaires were distributed to 27 participants from Awash Bank Shared Service Directorate department. Interviews were conducted with 3 division Managers of the departmentSecondary data were also extracted from related literature from studies conducted in area, company manuals and reports in the area of the study. Data were analyzed using both Descriptive and Explanatory research design was. The study demonstrated that strategic sourcing has a role to play in organization’s performance. The study established that operational performance was affected by various factors such assupplier relation management, information sharing with supplier, internal co-ordination and early supplier involvement. In conclusion the study revealed that all of the four dimensions that were selected for the study have found to have a strongest relation with that of the operational performance of the bank. Finally based on the result recommendation were forwarded that: the bank should embark on the dimensions selected in order to boost the operational performance that it is now; which is done by increasing the level of awareness towards the since of strategic sourcing, strengthening of its long-term oriented relationship with key suppliers and develop the connection in between different departments within the bank. Keywords: ,