THE EFFECT OF PROCUREMENT MANAGEMENT PRACTICE ON THE PROJECT PERFORMANCE: THE CASE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

This project studies the effect of procurement management practice on the project performance the case of commercial bank of Ethiopia where the concept of procurement management comes a long way in the practice of project undertaking. Thus, the researcher came up with a major research gap which the effectiveness of procurement practice on the project’s performance. In addition, the researcher has further assessed the effectiveness of procurement practice in terms of Inventory Management practice, Need Assessment, Supplier sourcing and Contract Management. The methodology was designed as quantitative approach since the data which was gathered through questionnaire is quantitative (numerical). Moreover, this study adopts explanatory research design. In this research design, empirical data are collected for testing the hypotheses. The researcher employs the test-retest reliability test, where the consistency of the questionnaire is evaluated over time by Cronbach’s alpha (Using SPSS version 22) and the researcher used Regression Analysis to analyze data presentations. Its general objective included to find out the effect of need assessment, supplier sourcing processes, contract management and inventory management on project performance of CBE. Procurement functions such as need assessment, supplier sourcing, contract management and inventory management play a very important role in the execution of projects. The study recommends that CBE should include the four procurement functions i.e. need assessment, supplier sourcing, contract management and inventory management in their implementation of projects.