Procurement Practices and Organizational Performance in Selected Telecommunication Industry in Hargeisa, Somaliland

ABSTRACT 

The study was to assess the effect of procurement practices on organizational performance in selected telecommunication industry in Hargeisa, Sornaliland. It was guided by three specific objectives, that included; to examine the effect of procurement planning on organizational performance in selected telecommunication industry in Hargeisa, Somaliland, to examine the effect of ethical procurement practices on organizational performance in selected telecommunication industry in Hargeisa, Somaliland and to establish the effect of procurement performance measurement on organizational performance in selected telecommunication industry in Hargeisa, Somaliland. This research employed a descriptive research design to describe the variables, the questionnaire and interview guide were used as the research instruments. Descriptive statistics were used in this study included frequencies, means and inferential statistics for regression analysis on variables. A finding of the study shows that procurement planning significantly affects the organizational performance in telecommunication industry Hargeisa Somaliland. So that it implies that procurement planning highly affects the organizational performance in telecommunication industry. A finding of the study shows that ethical procurement practices significantly affects the organizational performance in telecommunication industry Hargeisa Somaliland. So that it implies that ethical procurement practices highly affects the organizational performance in telecommunication industry. Concluding that ethical procurement practices are effectively improves organizational performance in telecommunication industry in Hargeisa Somaliland. An ethical procurement practice is an important factor that needs consideration because procurement manager deals with in supplier selection, bidder evaluation, contract awarding and sing it in business supplier. The researcher recommended that: that the telecommunication industry should effectively plan and analyze the need assessment to gain the greatest competition power, This also recommended that the firm should plan well and find out for this factors, like why, when, and where to pay the product, that the telecommunication industry should train their employees ethical practices and assess them to be knowledgeable people in the ethical code of conduct so that they avoid immoral and illegal practices such as bribery, favoritism, illegal sourcing etc. so that procurement activities be transparency and fair competition between the parties of the contract, that the telecommunication industry should follow up the past performance records of the firm. So that the firm can easily evaluate, control and improve production or services that they provide. The study contributed to new knowledge through the following; procurement practices factors in telecommunication industry in hargeisa Somaliland, procurement planning, ethical procurement practices and performance measurement. The following are the organizational performance measurement; cost effectiveness, quality improvement, and efficiency. In this study contributed that effective procurement practices improves the performance in telecommunication industry and leads competitive advantage in the market.

TABLE OF CONTENTS

DECLARATION

APPROVAL

DEDICATION

ACKNOWLEDGEMENT

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FJGUpj~5

LIST OF ABBPEVIATIONS

ABSTRACT

CHAPTER ONE 1

1.0 Introduction 1

1.1 Background of study 1

1.1.1 Historical Perspective 1

1.1.2 Theoretical Perspective 3

1.1.3 Conceptual Perspective 3

[.1.4 Contextual Perspective 5

[.2 Statement of the Problen~ 6

.3 Purpose of the study 7

.4. Specific Objectives

.5 Research Questions 8

.6 Hypotheses 8

.7 Scope of the Study 8

.7.1 Geographical Scope 8

.7.2 Content Scope 9

.7.3 Time Scope 9

8 Significance of the Study 9

9 Operational Definition of key terms 10

CHAPTER TWO 11

LITERATURE REVIEW 11

0 Introduction 11

1 Theoretical Review 11

2.1.1 Principal-Agency Theory .11

2.1.2 Institutional theory 12

2.1.3 Legitimacy Theory 13

2.2 Conceptual Framework showing independent and dependent variables 14

2.3. Empirical Review 15

2.4 Effect of procurement planning on organizational performance 17

2.5 Effect of ethical procurement practices on organizational performance 18

2.6 Effect of procurement performance measurement on organizational performance 21

CHAPTER THREE 26

RESEARCH METHODOLOGy 26

3.1. Introduction 26

3.2. Research Design 26

3.3 Study Population 26

3.4 Sample Size 26

3.5 Sampling methods 27

3.5.1 Census sampling 27

3.5.2 Random sampling 28

3.6 Sources of Data 28

3.6.1 Primary Data 28

.7 Research Instruments 28

L7. 1 Questionnaires 28

.8 Validity and reliability of the instrument 29

.8.1 Validity 29

.8.2 Reliability 29

.9 Data analysis 30

.10 Decision Rule 32

.11 Data Processing 32

12 Ethical Consideration 32

CHAPTER FOUR 33

DATA ANALYSIS, INTERPRENTAION OF RESULT AND DISCUSSION 33

0 Introduction

1 Respond rate 33

2 Demographic characteristics of the respondents 34

2.1. Gender 34

Age

Qualification.

4.3 Descriptive statistics 35

4.3.1. Procurement practices 35

4.3.2 Organizational performances 39

4.4 INFERENTIAL STATISTICS 42

4.5 Multiple regressions analysis 47

CHAPTER FIVE

DISCUSSIONS, CONLU5IONS AND RECOMMENDATIONS 49

5.0 Introduction 49

5.1 Discussions 49

5.1.1 To examine the effect of procurement planning on organizational performance in selected telecommunication industry 49

5.1.2 To examine the effect of ethical procurement practices on organizational performance in selected telecommunication industry 50

5.1.3 To establish the effect of procurement performance measurement on organizational performance in selected teleconiinunication industry 51

5.2 Conclusions 52

5.2.1 To examine the effect of procurement planning on organizational performance in selected Telecommunication industry 52

~.2.2 To examine the effect of ethical procurement practices on organizational performance in selected Telecommunication industry 52

.2.3 To establish the effect of procurement perfonnance measurement on organizational performance in selected telecommunication industry 52

.3 Recommendation 53

.4 Limitations of the Study 53

.5 Contribution to knowledge 54

.6 Areas for further research 54

REFERENCES

APPENDICES 60

APPENDIX I: QUESTIONNAIRE 60