Effect of procurement practice on Business Performance: The case of bank of Abyssinia s.c Addis Ababa Head office

Abstract

The purpose of this study is to investigate the effects of procurement practice on business performance: in the caseof Bank of Abyssinia s.c Addis Ababa Head office. Explanatory and Descriptive research design is used to undertake the research. The study used secondary data sources. Questionnaire that was tailored with the help of literature to collect the relevant information from the respondents. The questionnaire included 40 items categorized into 5 parts, which are general information on business performance, inventory management, procurement planning, procurement controlling, and procurement training work force. The survey was carried out at 5 bank of Abyssina Department Head office respondent employees. A sample of 143 employees was selected. With the support of the SPSS statistics V26 software system: - descriptive, correlation, and regression analysis was conducted to generate results. Correlation analysis was used in this study to show the relation between dependent and independent variables. Based on this, all variables have a positive and significant relationship with business performance. Multiple regression analysis was used in establishing the significance of the relationship between inventory management, procurement planning, procurement controlling, and procurement training workforce which in the findings, has a positive and significance relationship. The finding suggested that all variables have a slight positive effects impact on Business’ performance except controlling which was at a strongly high range. As the output of the training and development programs must be intensively evaluated to enhance the overall performance of the employees, the researcher recommended that CBE needs to give due emphasis to the evaluation aspects of a training program.