Resource Capabilities as a Moderator: Impact of Procurement Practices on Project Performance and Competitive Advantage

Abstract

The purpose of procurement management in governmental organizations is to ensure that all goods and services purchased by public institutions are done in a harmonized procedure and in a way that ensures a careful, economic and efficient use of public resources. It is also to ensure that transactions are devoid of corruption, but are done in fairly, plainly and in a transparent manner and by encouraging competition among local players. However, in a lot of government organizations, the public procurement process is sheltered with concealment, incompetence and bribery (Nyakundi, et al., 2012). Studies have shown that there are procurement operational lapses that are leading to poor service delivery and consumer dissatisfaction which have become a global challenge, (OECS), April 2013. Procurement management in many organizations rarely seems satisfactory to the community and donors. Several studies have been conducted in the field of donor funding but focused on different aspects other than procurement management and performance of governmental organizations in project implementation. Asfaw (2009) studied the relationship that exists between organizations' performance. Kebede (2012) studied factors affecting the implementation of donor funded projects. On the other hand, Girma (2000) researched on the effect of aid on economic growth of recipient countries. Studies on procurement management on project remains scanty hence this study seeks to access procurement management on project at CBE. The researcher wishes to investigate how procurement management is executed at CBE. In Ethiopia, previous studies have not concentrated on the assessment of procurement management on project performance at CBE. This thesis uses CBE as a case study as Ethiopian scenario portrays lack of literature on this front. The researcher aims to contribute this to the emerging literature.