ASSESSMENT OF FACTORS INFLUENCING PUBLIC PROCUREMENT PRACTICES IN THE CASE OF GURAGE ZONE FINANCE AND ECONOMY DEVELOPMENT DEPARTMENT

Abstract

Many procurement activities still suffer from neglect, lack of proper direction, poor coordination, slow with a lot of bureaucracy, lack of open competition and transparency, differing levels of corruption and not having trained and qualified procurement specialists who are competent to conduct and manage the procurement process in a professional, timely, efficient and cost effective manner. The aim of this study is investigate assessment of factors influencing public procurement practices in the case of Gurage zone finance and economy department. The study employed descriptive and explanatory research design along with quantitative and qualitative approaches. Comprehensive sampling technique, a technique that considers all population as study subjects, was used to select the whole population size 176. A structured questionnaire and semi – structured interview were used to collect primary data. Secondary data, document about public procurement practice were reviewed. Procurement planning, staff competency, information communication technology, procurement procedure, procurement policy, and employee procurement ethics were served as explanatory variables for procurement practice. The quantitative data were analyzed using descriptive statistics, multiple linear regression model and Pearson correlation coefficient by using a Statistical Package for Social Sciences (SPSS) version 20. The findings of the study revealed that of the influence the six explanatory variables were high and implementation of procurement practice was at moderate status. Except staff competency, strong and positive correlation between information communication technology, procurement procedure, procurement policy, and employee procurement ethics and procurement practice were observed. The regression analyses result revealed that 74.2% of the variation in the procurement practice was explained by the six explanatory variables, where procurement procedure has greatest effect among the other factors. Therefore, the study recommended that Gurage zone public financial organizations has to work in these influence’s factors so that it can increase high quality service, delivery time target delivery services, reduced cost of service delivery, increased types of service delivery and procurement efficiency.