The Effects of Strategic Sourcing on Organization Performance: The Case of Ethiopian Construction Works Corporation

Abstract

The purpose of this research was to see the effect of strategic sourcing on corporate performance. The construction industry was the subject of the research. This study employed an explanatory research design with a quantitative approach. The study target population of ECWC is 105, with elements chosen using a census technique. A questionnaire was used as the primary data collection tool. The response rate was 88.6% and data were analysed using correlation and regression analysis. The study’s findings suggest that strategic sourcing supplier selection, buyer–supplier relationship, and contract management have a significant and positive effect on organizational performance. Therefore, all the hypotheses are supported by the data with a predictive of 43 percent of the variance in the dependent variable. Our research provides evidence that supplier selection, strategic relationships and contract management practices have to be given by the practitioners as they significantly affect the performance of construction companies in Ethiopia.

Keywords: Strategic Sourcing, Supplier Selection, Buyer–Supplier Relationship, Contract Management, Organization Performance

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