| Abstract: | The main purpose of this study was to examine the factors affecting performance of Telecommunication Network Equipment Procurement in Ethio Telecom. The research approach was quantitative. Descriptive and explanatory type of research design was used to explain the factors of Telecommunication Network Equipment Procurement that influence Ethio Telecom procurement process and describe the existing procurement practice of the company. The research samples were 70 including managements, experts and administrative employees of Ethio telecom. The primary data was collected using questionnaire. The secondary data was collected using literature. The analysis was done using descriptive and inferential analysis method such as percentage, frequency, correlation and regression. The researcher adopted ten different variables of interest; these are Performance Management, Technology Standard, Price, System Integration, Top Management Support, Security, Supplier Process/Time, Change Management, and Relationship with supplier and Risk as factors/ Independent variable for the study as derived from different literature reviews. Major findings include EthioTelecom fail to provide form all training related to project and project procurement management. The company considers make-or-buy analysis, expert judgment, and market research ,past project procurement documents, and activity and cost estimation for planning project procurement. Associated risks and mitigation plan as well as overall procurement need of the project are identified. The company also follows separate project procurement procedure. EthioTelecom prepares standardize procurement document to obtain bid/proposal from suppliers. The company uses pre-defined proposal evaluation criteria and prefers to conduct preliminary screening before making detail evaluation the received proposals. The company is financially dependent on its suppliers for procuring foreign products and services. Ethio Telecom uses tight monitoring and controlling system for products arrived at regional and central warehouse but fail for products arrived directly at project site. As a recommendation company need to provide adequate training, arrange pre-proposal visit especially for its large procurement decisions in order to view the capability of the market site, production factory, and technical and managerial capability of pre identified potential suppliers. Company not to neglect and consider their risk management practice as well as check how they redistribute in satisfactory manner the company should develop tight monitoring and controlling system on those products directly arrived at project site. |
