Procurement Practices and Organizational Performance a Case of Adjumani District Local Government

Abstract

This study examined the effect of procurement practices on organizational performance in Adjumani district local government. Specifically, the study examined the effect of inventory, contract and E-procurement practices on organizational performance. The research employed a positivist research philosophy with descriptive analysis. The sample of this study was 92 employees of Adjumani district local government of which only 71 participated and returned the completed questionnaires. Questionnaires, and interview guide were the main data collection tools while data analysis involved the use of quantitative and qualitative statistical techniques. The study established a positive and significant correlation between procurement practices and organizational performance, R Square value = 0.890 (0.890*100 = 89.0%). . The study concluded that all study variables, inventory with Beta value of 0.883 at p=0.002, contract with Beta value of 0.344 at p= 0.000 and E-Procurement practices with Beta value of 0.285 at p=0.001 have a positive significant effect on organizational performance. The research concluded that effecting changes in the inventory, contract and E-Procurement will significantly lead to better organizational performance. The study recommends that; the management of Adjumani District local government should put more emphasize on contracts management since the regression results indicated that it was the second contributor to organizational performance. This can be done through contracts administration and regular monitoring of contractual works; based on descriptive results the management should maintain optimal levels of inventory to help reduce cases of tied up capital in the organization; the study results suggest that management should make sure that E-procurement implemented innovations are suitable with existing systems and resources in order to assure flexibility and usefulness.