College Of Finance and Development

Department Of Public Procurement and Asset

Management

Factors Affecting the Effective Implementation of

Public Procurement Policies and Procedures in
Sidama Regional State: The Case of Selected Public
Bureaus or Sectors

By: Temesgen T/Haymanot

June, 2024

Addis Ababa, Ethiopia

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i
ETHIOPIAN CIVIL SERVICE UNIVERSITY

College Of Finance and Development

Department Of Public Procurement and Asset Management

Factors Affecting the Effective Implementation of Public

Procurement Policies and Procedures in Sidama Regional
State; the Case of Selected Public Bureaus or Sectors

By: Temesgen T/Haymanot

A Thesis Submitted to the Ethiopian Civil Service University, College of Finance Management
and Development, Department of Public Procurement and Asset Management in Partial
Fulfilment of the Requirements for the Master of Arts (MA) degree in Public Procurement and
Asset Management

Advisor: Mebrahtu.L.Teklehaimanot (PhD)

June, 2024

Addis Ababa, Ethiopia

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 Declaration

This is to declare that the research entitled “Factors Affecting Effective Implementation of
Public Procurement Policy and Procedures in Siama Regional State: A Case of selected
Public Sectors, submitted in partial fulfillment of the requirements for the degree of Master Art
in the Ethiopian Civil service University (department of public procurement and asset
management), is a record of original work carried out by me and was never submitted to any
other institution to get any other degree or certificates. The assistance and help during the course
of this investigation have been duly acknowledged

______________________ _____________________ ____________________

Name of the Designate Signature Date

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ETHIOPIAN CIVIL SERVICE UNIVERSITY

COLLEGE OF FINANCE AND DEVELOPMENT

DEPARTMENT OF PUBLIC PROCUREMENT AN ASSET

MANAGEMENT

Approval Form
I hereby certify that I have supervised read and evaluated this research titled “Factors Affecting
Effective Implementation of Public Procurement Policy and Procedures in Sidama
Regional State: A Case of Selected Public Sector” by Temesgen Tekilehayimanot prepared
under my guidance. I recommend the research to be submitted for oral defense.

Mebrahtu.L.Teklehaimanot (PhD) ________________ _____________

Supervisor’s name Signature Date

3
ETHIOPIAN CIVIL SERVICE UNIVERSITY

COLLEGE OF FINANCE AND DEVELOPMENT

DEPARTMENT OF PUBLIC PROCUREMENT AN ASSET MANAGEMENT

BOARD OF EXAMINER’S APPROVAL FORM

Approval of Thesis after Defense

I hereby certify that I have supervised read and evaluated this research titled “Factors Affecting
Effective Implementation of Public Procurement Policy and Procedures in Sidama
Regional State: A Case of Selected Public Sector” by Temesgen Tekilehayimanot prepared
under my guidance. I recommend the research to be submitted for oral defense.

Board of Examiners
External examiner 1

Name Signature Date

_____________________ ________________ _____________

Internal examiner

Name Signature Date

____________________ ________________ _____________

Chair person’s

Name Signature Date

_____________________ ________________ ______________

Acknowledgment
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First of all, I would like to thank Almighty God. Second, I would like to express my deepest
gratitude to my advisor, Mebrahtu L. Teklehaimanot (Ph.D.); without him, I could not have gone
this far with my project work. Thanks to the Civil Service University for offering me the
opportunity to study and to all my lecturers who contributed in one way or another to quenching
my thirst for knowledge.

I am thankful to the finance and development head and expert; public procurement agency
director and property administration office; health bureau head and expert; ethics and anti-
corruption commission; and municipality office management for filling out the questionnaires
and providing necessary information for the study while sacrificing their precious time. Special
thanks to my family members for their unfailing moral support throughout my period of study
and for understanding and appreciating the demands of the course. I cannot forget the positive
influence of my family as a source of inspiration throughout my study and for assisting me in
sourcing information and materials for this project.

Acronyms
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SRS Sidama Regional State

GDP gross domestic product

BOFED Bureau of finance and economy SOE State Owned Enterprise

PPA Public Procurement Agency

NAPM National association of purchasing

MOED Ministry of Education

PPPP Public Procurement policy and procedure

FPPPAA federal public procurement and property administration agency

ANOVA Analysis of variance

Table of content

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Contents
Abstract.......................................................................................................................................................13

CHAPTER ONE..........................................................................................................................................1

Introduction..................................................................................................................................................1

1.1Back ground of the study......................................................................................................................1

1.2. Statement of the Problem....................................................................................................................2

3. 1.Research Questions.............................................................................................................................3

1.4. Study Objectives.................................................................................................................................4

1.4.1 General Objective..........................................................................................................................4

1.4.2 Specific Objectives........................................................................................................................4

1.5. Significance of the study.....................................................................................................................5

1.6. Research Scope...................................................................................................................................5

1.7. Organization of the study....................................................................................................................6

CHAPTER TWO.........................................................................................................................................6

2. REVIEW OF RELATED LITRETURE................................................................................................6

Introductory statement................................................................................................................................6

2.1 Definition of procurement and public procurement.............................................................................6

2.1.1 Public Procurement vs. Privet Procurement..................................................................................7

2.1.2. Public Procurement: A Historic Genesis......................................................................................8

2.1.3. Legal Framework of Public Procurement in Ethiopia..................................................................8

2.1. 4. Public procurement policy and procedures in Ethiopia...............................................................9

2.1. 5. The procurement process and methods.....................................................................................10

2.1.6. Factors Affecting Implementation of public procurement policy and procedures.....................11

2.1.7. Challenges of public procurement..............................................................................................14

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 2.1.8. Public Procurement Reforms......................................................................................................15

2.1.9. The ethics in public procurement,..............................................................................................17

2.1.10. The Five 5R's Procurement Procedures:...................................................................................19

2.1.11. E-Procurement..........................................................................................................................21

2.2. Empirical Review..............................................................................................................................21

2.3. Research gap.....................................................................................................................................23

2.4. Conceptual Framework.....................................................................................................................23

2.5. Research Hypotheses.........................................................................................................................24

CHAPTER THREE...................................................................................................................................25

3. RESEARCH METHODOLOGY.........................................................................................................25

Introduction................................................................................................................................................25

3.1. Study Area Description.....................................................................................................................26

3.2. Research Design and Research Approach.........................................................................................26

3.2.1. Research Design.........................................................................................................................26

3.2.2. Research Approach.....................................................................................................................27

3.3. Nature and Sources of Data...............................................................................................................27

3.4. Sample design...................................................................................................................................28

3.5. Target Population and Sampling.......................................................................................................28

3.5.1. Target Population.......................................................................................................................28

3.5.2. Sample size.................................................................................................................................29

3.6. Sampling procedure/Techniques.......................................................................................................30

3.7. Sampling Frame................................................................................................................................30

3.8. Data Collection Instrument...............................................................................................................31

3.9. Data Collection Procedure................................................................................................................31

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 3.10. Reliability and validity....................................................................................................................31

3.10.1. Validity.....................................................................................................................................31

3.10.2. Reliability.................................................................................................................................31

3.11. Methods of Data Analysis...............................................................................................................33

3.12. Model specification.........................................................................................................................33

3.13. Operationalization / Measurement of Variables..............................................................................35

3.14. Ethical Considerations.....................................................................................................................35

CHAPTER FOUR......................................................................................................................................35

4. RESEARCH ANALYSIS, FINDINGS, AND DISCUSSIONS..........................................................35

Introduction................................................................................................................................................35

4.1. Descriptive Statistics.........................................................................................................................36

4.1.1. Response Rate.............................................................................................................................36

4.1.2. Demographic Characteristics and Response Rate of Respondents............................................37

4.3. Effective implementation of public procurement policy and procedures in sidama region Hawassa-
City Administration..................................................................................................................................40

4.4. Inferential analysis............................................................................................................................51

4.4.1. Diagnostic Testes........................................................................................................................51

4.4.2. Correlation..................................................................................................................................55

4.4.3. Multiple Regression Analysis.....................................................................................................58

4.4.4. Hypotheses Testing.....................................................................................................................62

4.5. Analysis of Qualitative Data.............................................................................................................64

4.6. Discussion of the Research Analysis................................................................................................66

CHAPTER FIVE........................................................................................................................................68

5. SUMMARY, CONCLUSION AND RECOMMENDATIONS..........................................................68

Introduction................................................................................................................................................68
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 5.1. Summary of Finding..........................................................................................................................69

5.2. Conclusion.........................................................................................................................................71

5.3. Recommendation...............................................................................................................................72

5.4. Further Research Directions..............................................................................................................74

References...................................................................................................................................................75

APPENDICES............................................................................................................................................78

APPENDIX I: Letter of transmittal.........................................................................................................78

Survey questionnaire....................................................................................................................................79

List of Table

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Table 1 Target population..................................................................................................30

Table 2 Reliabilty test........................................................................................................33

Table 3 Response rate........................................................................................................37

Table 4 demographic characteristics of respondents.........................................................38

Table 5 Respondents perception on leadership commitment and support........................41

Table 6 Respondents perception on effective procurement planning................................43

Table 7 Respondents Perception on Compliance with rules and regulation.....................45

Table 8 Respondents perception on staff competency......................................................47

Table 9 Respondents Perception on Information communication system.........................49

Table 10 Variance of inflation Factors..............................................................................54

Table 11 Correlations Analysis.........................................................................................56

Table 12 Model Summary.................................................................................................57

Table 13 ANOVA..............................................................................................................58

Table 14 Coefficients.........................................................................................................59

Table 15 Summary of the Overall Outcome of the Research Hypotheses........................61

List of figure
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Figure 1 concepyual framework.....................................................................................................26

Figure 2 Linearity test.....................................................................................................................52

Figure 3 normality test of effective implementation......................................................................53

Figure 4 Homoscedasticity.............................................................................................................54

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 Abstract
The effective implementation of public procurement policies and procedures is essential for ensuring that
government agencies operate efficiently, effectively, and sustainably. By prioritizing transparency,
fairness, and accountability, governments can promote trust, reduce waste, and deliver better services to
their citizens. The major aims of this study were to examine factors affecting the effective implementation
of public procurement policies and procedures in the S/R/S selected public bureaus or sectors. To achieve
this objective, the study employed both descriptive and explanatory research design and both qualitative
and quantitative research approaches. The sampling design for this study was used probability and non-
probability sampling techniques. This study distributes 161 respondents’ were survey questionnaires and
conduct for 20 respondents were used structured interview. The interview survey was conducted by two
bureaus of finance and development heads and public procurement experts. Both descriptive and
inferential statics for social science software SPSS 2025 analysis methods were used. The study was
driven by a theoretical and empirical literature review of the study. The findings of this study indicate
that three independent variables were found to be statistically significant and positively affected the
overall effective implementation of public procurement policies and procedures. Staff competency, the
information communication system, and leadership commitment and support were the most significant
factors affecting public procurement policy and procedures, whereas effective procurement planning and
compliance with rules and regulations were not the most significant factors affecting public procurement
policy and procedures. The study highlights the importance of leadership commitment and support for
effective procurement policy implementation. Other factors, such as procurement planning, staff training,
and stakeholder engagement, also plays a crucial role. The findings suggest that addressing challenges
faced by public procurement officials is essential. Prioritizing effective procurement practices ensures the
timely and efficient delivery of public services. Further research is needed to explore the impact of
external factors on public procurement policy implementation. The researcher recommended that the
organization could prioritize leadership commitment, develop a comprehensive procurement planning
framework, provide regular training, establish transparency, address challenges, and implement effective
procurement practices.

Keywords: leadership commitment, effective procurement planning staff competence and information
communication

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 CHAPTER ONE
Introduction
This introductory chapter provides an overview of the study, covering the background, purpose,
objectives, research questions, hypothesis, significance, scope, definition of operational terms,
and organization of the paper.

1.1Back ground of the study

Procurement was the process of obtaining goods or services in any way, including borrowing,
leasing, and even the force of pillage (Lysons & Farrington, 2006). Procurement was the process
of acquiring goods, works, and services, covering both acquisitions from third parties. It
involved option appraisal and the critical "make or buy" decision, which may have resulted in the
provision of goods and services in appropriate circumstances (PPB, 2003). It was the process of
acquisition by means of contractual arrangements after the public competition of goods and
services, works, and other supplies by the public entity (Tirualem A., 2020). Procurement
consisted of the whole process of acquiring goods and services and started with the identification
of needs and preparing the procurement plan and the procurement method. It also included risk
assessment, identification, and evaluation of alternative solutions, contract award and
management, receiving the procured property or obtaining the services, and settling payments
(Ngugi & Mugo).

According to the Ethiopian Public Procurement Proclamation (No 649/2009), procurement

meant "obtaining goods, works, consultancy, or other services through purchasing, hiring, or
obtaining by any other contractual means." From the above definitions, the overall tasks of
procurement were to obtain goods, works, consultancy services, and other services at the right
quality, in the right quantity, from the right sources, at the right time, place, and price to achieve
an organizational objective. Public Procurement was the process by which governments and
other public-funded entities acquired goods, works, and services needed to implement public
projects. It accounted for at least 15% of the world's Gross Domestic Product (GDP) and even
more in African Countries (World Bank Report, February 4th, 2013). Public procurement was an
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integral function of governments in both developed and developing countries as the gigantic
financial outflows had a great impact on.

Sidama, like other regions in Ethiopia, had long been interested in understanding the factors that
affected the overall effectiveness of public organizations and the efficient execution of public
procurement policies and processes. Given their potential impact on the effective implementation
of public procurement, all relevant issues and obstacles warranted careful consideration. Despite
numerous studies examining the effective implementation of public procurement policies and
procedures in other countries, there appeared to be insufficient research on the specific factors
influencing the effective implementation of such policies and processes within S/R/S public
organizations. This gap in the existing literature was notable and merited investigation.

1.2. Statement of the Problem

Procurement operations, such as leasing and hiring, were dependent on procurement policies and
procedures. These policies may have encompassed additional activities related to the life cycle of
products or service contracts, as well as the disposal of acquired commodities at the end of their
useful life (Arminas, 2013). The guidelines that controlled an organization's procurement
processes were known as procurement policies. A well-crafted and executed procurement policy
provided an effective foundation for implementing efficient procurement processes. According
to research by Maina (2008), tertiary public training institutions could have adopted more
effective and efficient procurement processes by creating and implementing policies in
accordance with the procurement legislative framework. Developing countries were typically
advised by the World Bank to enhance their procurement procedures (Mwangi, L. N., and
Christopher M., 2015). However, poor procurement performance was the outcome of not putting
the suggested procurement procedures into effective practice.

The obstacles to the smooth operation of public procurement included inappropriate supplier
assessments, high operating expenses, inadequate inventory control, and standards. Chimwani et
al, (2014) stated that public procurement was one of the most important divisions in any business
and was essential to the delivery of government services. It greatly enhanced the efficacy and
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efficiency of organizations (Snider & Rendon, 2012). The people's quality of life and the
country's development process were impacted when service delivery was restricted or rendered
inefficient (Arrowsmith, 2010).

Public procurement faced numerous challenges, as many citizens did not understand its
importance and the role they played in supporting it through activities such as paying taxes
(Nyambura & Mwangi, 2015). These factors could have impeded effective implementation.
Some common challenges included capacity and skills, compliance strategy and legal
complexity, limited staff capacity, technology and communication infrastructure, political
interference, and corruption and fraud.

Addressing these challenges this study required a comprehensive approach that included capacity
building, stakeholder engagement, effective monitoring and enforcement mechanisms,
technological advancements, and a strong commitment to transparency, ethics, anti-corruption,
and good governance. This research aimed to examine factors such as leadership commitment
and support, staff competency, compliance with rule and regulation, and information and
communication system that supported the effective implementation of public procurement
policies and procedures in public organizations in S/R/S.
3. 1.Research Questions
This study aims to address the following questions:

 What impact does leadership commitment and support have on the effective
implementation of public procurement policies and procedures in S/R/S selected public
sectors or bureaus?

 How does efficient procurement planning affect the effective implementation of public
procurement policies and procedures in S/R/S selected public sectors or bureaus?

 To what extent does compliance with rules and regulations impact the effective execution
of public procurement policies and procedures in S/R/S selected public sectors or
bureaus?

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  How does staff competence affect the effective implementation of public procurement
policies and procedures in S/R/S selected public sectors or bureaus?

 To what extent does information communication system (ICS) affect the effective
implementation of public procurement policies and procedures in S/R/S public sectors or
bureaus?

1.4. Study Objectives

The study encompasses both a general and specific objectives.

1.4.1 General Objective

The primary objective of the study is to identify various factors that impact the effective
implementation of public procurement policies and procedures in selected public sectors of the
S/R/S.

1.4.2 Specific Objectives

The specific objectives of the study include:

 Assessing the impact of leadership commitment and support on the effective

implementation of public procurement policies and procedures in S/R/S public sectors or
bureaus.

 Examining the effect of efficient procurement planning on the effective implementation

of public procurement policies and procedures in S/R/S public sectors or bureaus.

 Evaluating the impact of compliance strategies on the effective implementation of public

procurement policies and procedures in S/R/S public sectors or bureaus.

 Determining the effect of staff competence on the effective implementation of public

procurement policies and procedures in S/R/S public sectors or bureaus.

 Assessing the impact of information communication system (ICS) on the effective

implementation of public procurement policies and procedures in S/R/S public sectors or
bureaus.
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1.5. Significance of the study
The study is expected to have a significant impact on organizations, students, and research
communities by demonstrating the importance of effectively implementing public procurement
policies and procedures in enhancing organizational sustainability while minimizing negative
environmental impact (Paul, 2007). This study thoroughly examines the implementation of
public procurement in the S/R/S public sector and aims to provide valuable insights into how
public sector spending can be reduced through effective implementation of procurement
procedures in compliance with legal frameworks. Given the limited prior research on this topic,
it is essential to conduct a comprehensive investigation into the factors influencing the efficient
application of public procurement procedures in S/R/S public procurement and property
administration organizations.

The study's recommendations are expected to help S/R/S public sector institutions overcome
major challenges in implementing procurement policies and procedures effectively. Procurement
professionals in the sector stand to benefit from the study as it contributes to the theory and
practice of effective procurement implementation. Additionally, the government will find value
in the study's findings as they offer guidance on how public organizations can effectively
implement procurement policies and procedures, leading to better utilization of government
financial resources. The documented report from this study was also serving as a valuable
reference material for scholars, students, and researchers involved in procurement research
activities, equipping them with additional knowledge and skills.

1.6. Research Scope

Ethiopia comprises thirteen regional states, and this study focused on examining the elements
that affect the effective execution of public procurement policies and procedures within selected
public sectors of the S/R/S region. Specifically, the research examined procurement activities
within the bureau of finance and development, the public procurement agency director and
property administration office, the health bureau, the ethics and anti-corruption commission, and
municipality office management. The survey aimed to identify the challenges faced in the
implementation of procurement practices within these selected sectors. However, it is important
5
to note that the study did not encompass procurement activities within the zonal public bodies of
the region.

1.7. Organization of the study

In this research study, an exploration was conducted on the elements impacting the efficient
execution of public procurement policies and procedures within the public sectors of the S/R/S.
The thesis has been structured in the following manner: the initial chapter offers an overview of
the study, the subsequent chapter provides a comprehensive review of relevant literature, the
third chapter details the methodology used, the fourth chapter includes data analysis and
findings, and the concluding chapter presents a summary and recommendations based on the
research undertaken.

CHAPTER TWO

2. REVIEW OF RELATED LITRETURE

Introductory statement
2.1 Definition of procurement and public procurement
Procurement refers to the process of acquiring goods, services, or works from external sources,
typically through purchasing or contracting. It involves the activities of sourcing, selecting
suppliers negotiating and managing the overall supply chain. Procurement can be carried out by
both private organizations and public entities.

The term "public procurement" particularly describes the purchasing procedures used by public
sector or governmental entities. It entails the use of public funds to purchase products, services,
or works. Regulations and processes relevant to public procurement are in place to guarantee
accountability, equity, and openness in the use of public funds. According to Arrowsmith (2010),
public procurement is the process by which a government makes purchases. The goods and

6
services needed for it to carry out its responsibilities. In a similar spirit, procurement is defined
as the process of obtaining commodities, labor, advice, or other services in the 2009 Ethiopian
Federal Government Procurement and Property Administration Proclamation. via any contractual
method, such as hiring, buying, or acquiring; purchases undertaken by a public body are referred
to as public procurement. The objectives of public procurement are often centered on achieving
value for money, promoting competition, and supporting socioeconomic development. It aims to
obtain the best possible goods or services at the most favorable terms in terms of price, quality,
and delivery. Public procurement procedures typically involve the publication of a tender or
request for proposal, a competitive bidding process, and the selection of a supplier based on
predetermined criteria.

Public procurement plays a crucial role in shaping the economy and society. It can drive
innovation, support local businesses, promote sustainability, and contribute to the overall
development of a country. However, due to the potential risks of corruption and favoritism,
public procurement is subject to strict regulations and oversight to ensure fairness, transparency,
and integrity in the process.

2.1.1 Public Procurement vs. Privet Procurement

Goods and service must be purchased in both the public and private sector, and in both cases, it
makes sense to market around for the cheapest price when acquiring the necessary goods and
services. But even with these parallels, it is widely acknowledged that public, compared to
private procurement; public procurement is very different (Johnson & Dubbelley, 2000). Knight
et al. (2012) recognized that public sector procurement has several distinct features, including
extensive public openness and a substantial amount of resources allocated to the process that
demand attention. According to the World Bank, in 2019, the global government procurement
spending was estimated to be $14.5 trillion, which is equivalent to 12.3% of the global GDP.

The United States was the largest government spender, accounting for 20% of the global total,
followed by China (15%), Japan (10%), and Germany (7%). Although they are conceptually the
same both entail purchasing goods or services they are very different in actuality (Knight et al.,
7
2012). According to Walker and Brammer (2009), the nature and environment of purchasing in
the public sector differ from those of commercial activity. This is due to the fact that public
sector buyers have an additional duty to accomplish social, environmental, and other benefits in
their purchases in order to fulfill the government's commitments to the society, in addition to
their primary focus on cost reduction and value attainment. When comparing procurement in the
two sectors, it appears that demands on public procurement are greater and more varied than
those on the private sector. The process by which governments purchase products and services is
known as government procurement. It is a large economic activity that contributes significantly
to the GDP of many nations. The economy may be greatly impacted by government procurement
as it can foster competition, growth, and job creation. Knight et al. (2012) have classified the
many demands that distinguish public and private procurement into three categories: demands on
the process, multiple duties for the public organization itself, and external, internal, and context-
based demands.

2.1.2. Public Procurement: A Historic Genesis

Dobler and Burt (1998) assert that public purchasing in the United States has a long history
dating back to 1792, when the federal government gave the Departments of War and Treasury
permission to enter into contracts on behalf of the country. Congress's permission recognized the
profession even though its main goal was probably to stop corruption in the awarding of
government contracts. As public sector buying developed over time, many saw it as a clerical
duty, while others saw it as a controlling gatekeeper.

Dobler and Burt claim that the field did not make considerable progress toward becoming a
reputable profession until the 1990s.The explosion of electronic technology, which gave rise to
initiatives like e-business, e-procurement, and ecommerce.

2.1.3. Legal Framework of Public Procurement in Ethiopia

The Government of Ethiopia initiated the Expenditure Control and Management program in
1996 within the civil Service Reform Program with the goal of enhancing Ethiopia's overall

8
public financial management. One aspect of managing and controlling spending was public
procurement. The Public Procurement and Property Administration Agency (PPA), which is
responsible to the Ministry of Finance and Economic Development, were founded by the
Ethiopian government in 2009 after it passed Proclamation No. 649/2009 on procurement and
property administration. The PPA oversees public procurement operations.
2.1. 4. Public procurement policy and procedures in Ethiopia
Thai (2009) states that the following are the main characteristics of skillful public procurement:
Economy: Getting the most value for the buyer's money is the goal of procurement, which is a
purchasing activity. Value may include more than simply price in complex transactions.
According to Thai (2009), the key characteristics of effective public procurement include the
goal of achieving the best value for the buyer's money. This may involve considering factors
beyond just the price, such as quality, as the lowest initial price does not always translate to the
lowest long-term cost.

a) The Public Procurement and Property Administration Agency (PPA) is responsible for
identifying common user items, issuing a regularly updated list, and communicating it to the
relevant authorities.

b) Each public body must submit its annual procurement requirements to the designated service
within the specified timeframe, based on the list provided by the PPA.

c) The body managing framework procurements must develop a procurement strategy based on
the requirements received from various public organizations and inform the PPA about this
strategy.

d) The entity responsible for framework procurements must prepare bidding documents using the
most appropriate model and determine the worth of each requirement through a market rate
survey.

9
e) The authority overseeing framework procurements must invite bids in compliance with the
legal framework, providing specific details such as the nature of the framework agreement,
estimated quantities or values, agreement length, and the list of entitled public bodies.

f) The body administering framework procurements must use standard bidding documents
designed exclusively for this purpose

g) The body administering framework procurements must follow the rules and procedures for all
phases of the procurement process, including the use of open bidding procedures, specifications,
candidate selection, and contract award.

h) Framework agreements may be reached with one or multiple suppliers, depending on the
outcome of the bid evaluation and the applicable restrictions.

The comprehensive legal framework and detailed procedures governing public procurement in
Ethiopia, emphasizing the government's efforts to ensure transparency, accountability and value
for money in public spending.

2.1. 5. The procurement process and methods

2.1.5.1. The procurement process

To handle the routine daily activities, the procurement department needs a wide range of
standard operating procedures. There are five main reasons to create a strong procurement
system: the quantity of things, the high volume of business, the requirement for an audit trail, the
severe consequences of subpar performance, and the function's intrinsic ability to support
efficient organizational operations. There is a need for comprehensive information systems since
the acquisition process is intimately related to practically, every other organizational function as
well as the external environment. Leenders et al. (1989) state that the following are crucial steps
in the procurement process: identifying the need, providing a precise description of the desired
good or service, choosing a potential supplier, evaluating bids, preparing the purchase order,

10
following up and expediting, receiving and inspecting the goods, Paying bills, keeping track of
invoices, and maintaining documentation

2.1.5.2. Methods of public procurement

Here are the different methods of public procurement that are commonly used, according to the
governments' procurement regulations and directives:

Open Bidding: This is a competitive procurement method where the opportunity to bid is open
to all interested and qualified suppliers or contractors. It is the default method for public
procurement.

Two-Stage Tendering: This method involves an initial stage where unpriced technical
proposals are invited, followed by a second stage where priced financial bids are requested from
the shortlisted bidders.

Restricted Tendering: This method is used when the number of potential suppliers is limited.
Only the pre-qualified or invited suppliers are allowed to submit bids.

Request for Quotation: This method is used for purchasing readily available off-the-shelf
goods or standard specification commercial items of low value. Quotes are requested from a
limited number of suppliers.

Direct Procurement: This method involves directly negotiating and awarding a contract to a
single supplier, without a competitive bidding process. It is used only in exceptional
circumstances, such as for national security reasons or in cases of extreme urgency. The
appropriate procurement method is selected based on factors such as the value, complexity, and
nature of the goods, works, or services being procured, as well as the prevailing market
conditions and the number of potential suppliers available

2.1.6. Factors Affecting Implementation of public procurement policy and procedures

The factors affect effective implementation of public procurement policy and procedures have
various factors such as: leadership commitment and support, effective procurement planning,
compliance with rule and regulation, staff competency and information communication is

11
significant determinants effective implementation of public procurement policies and procedures
in public sector.

Leadership commitment and support: is playing a crucial role in the effective implementation
of public procurement policies and procedures. When leaders within an organization, particularly
in the public sector, demonstrate a strong commitment to procurement processes, it sets the tone
for the entire organization and significantly impacts the success of procurement activities. A
different kind of leadership one that does not fit all heads may be used in roles requiring a very
high degree of technical skill, sensitivity, care, confidence, and accuracy than in straightforward
management-oriented portfolios (Dess & Picken, 2000). Accordingly, the leadership concept
becomes commensurate with the changing organizational dynamics. Circumstances, contexts,
culture, working environment, new laws and regulations, information overload, organizational
complexities, and psycho-socio developments have a remarkable impact on the leadership
concept (Amabile, Schatzel, Moneta & Kramer, 2004).All things considered, the dedication and
backing of the leadership foster a climate that is conducive to the successful execution of public
procurement regulations and procedures.. They foster a culture of compliance, allocate necessary
resources, provide guidance, and ensure stakeholder engagement. By demonstrating a strong
commitment to procurement practices, leaders enhance transparency, accountability, and
efficiency in the procurement process, leading to better outcomes and value for money.

Effective Procurement planning: Effective procurement planning is the process of

consolidating conditions and determining the timeframes for procurement. It involves deciding
what to buy, when to buy, and from where. Throughout this phase, the chosen purchase system
and the prospects for meeting procurement requirements are established. Procurement planning
also involves developing a plan specifying how certain needs will be met, taking into
consideration the current state. This plan includes tasks, deadlines, and responsible officers. The
effectiveness of procurement planning is measured by its quality and timeliness in meeting
departmental needs and overall organizational performance. It is also evaluated based on the
suitability of acquired goods, workshops, and services in a timely and efficient manner.

12
Achieving value for money in procurement means achieving maximum effectiveness and
efficiency at the best possible price.

Staff Competence: While the fundamental skills illustrate the how and why to do activities, the
practical competence refers to the demonstrated ability to complete a set of tasks. Chirchir
(2013) states that competence is the possession of the designated abilities, the skills, mindset and
conduct required to succeed in a task, activity, or vocation. According to Chichirchir (2013),
there are several ways to evaluate human capacity competency, including education level
(diploma, degree, postgraduate, etc.), education specialization, procurement knowledge,
professional experience, and technical abilities. The effectiveness of public procurement by
county government procurement personnel is influenced by human capital competency. The
higher and specialized degree of educational qualification of the workers improves their
efficiency in public performance.

Compliance with rule and regulation: Social legislation must be effectively executed in order
to be implemented, and laws that are enforced seldom achieve their intended social goals
(Arminas, 2013). The subject of how to carry out the enforcement duty in the most effective
manner is examining in this study. Use purchase leverage, negotiation, and supplier
segmentation, among other strategies, to achieve policy outcomes that are efficient (in reducing
the incidence of social harm) and effective (in doing so at least cost to duty holders and the
regulator), while also maintaining community confidence (Barrett, 2012). To make sure that the
public procurement regulations and principles are followed, businesses that use public funds for
public procurement, like county governments, must use compliance techniques in addition to
other tactics (Basheka & Bisangabasiija, 2010). Value for money, open and fair opposition,
accountability and due process, fair dealing and non-discrimination are among the procurement
principles. Prejudice (Barrett, 2012). Maintaining a careful balance between the value of the
items being purchased and the administrative expenditures associated with bidding is necessary
to guarantee value for money. Consequently, the idea of minimizing expenses and safeguarding
cost structures is crucial to public procurement.
13
Information Communication: good public procurement policy and process execution is based
on good information communication. It encourages cooperation, comprehension, openness, and
prompts information sharing, which enhances compliance, effectiveness, and efficiency in the
procurement process. Enabling a successful procurement procedure requires effective
communication both inside and outside.

Organizations can manage complicated procurement activities and solve problems more
successfully when there is clear and organized communication between all parties involved.
According to Delone (2003), there are many degrees of uncertainty that companies must deal
with. This is the "difference between the amount of information required to perform the task at
the desired level of performance and the amount of information available." The task's
information processing needs are characterized by this discrepancy. The organization, scope of
activities, and size of the company are the three variables that are likely to affect the information
processing requirements that a PMS has to fulfill. The speed and predictability of change vary
throughout institutions, and the ensuing degrees of uncertainty lead to varying degrees of
information needs. As businesses grow in terms of size (small, medium, big enterprises) and
geographic scope of activities (regional, national, international, or global), it is also reasonable to
predict a growth in uncertainty and the corresponding need for knowledge.

2.1.7. Challenges of public procurement

Public procurement practitioners and purchasers frequently encounter various setbacks. Thai
(2009) posits that there are two types of obstacles associated with public procurement: internal
and external (i.e., non-organizational and organizational).

2.1.7.1. Internal Challenges

Thai argues that an organization's ability to effectively implement procurement objectives and
policies is significantly influenced by various internal factors. These factors encompass
interactions between different components of the public procurement system, officials and
organizations within the three government branches, actors and sub-agencies within departments
or executive agencies, and external actors and organizations.
14
Key internal factors include the professionalism and competence of procurement personnel,
budgetary resources, staff size (e.g., the ratio of procurement practitioners to contract actions),
procurement policies, guidelines, and advice; internal controls and legislative oversight; and the
organizational structure of procurement, particularly the debate between centralization and
decentralization.

2.1.7.2. External Challenges

Thai asserts that public procurement practitioners have consistently encountered barriers
imposed by a variety of environmental factors. These challenges span across the market
landscape, legal and political contexts, organizational structures, and socioeconomic and
technical domains.

2.1.8. Public Procurement Reforms

According to Basheka (2009), during the course of the last 30 years, waves of management
reform have focused on public procurement and public administration more broadly
internationally. According to Basheka, the need to boost the efficiency and affordability of the
public sector has prompted a number of changes, including managerialism, outsourcing,
corporatization, centralization, and devolution. There often seem to be conflicts between the
fundamental principles of public governance such as accountability and transparency and
performance and results in relation to these reforms.

Basheka defined public procurement reforms as the process of changing government

procurement from systems that are unable to accomplish government procurement objectives to
those systems that are capable of accomplishing those objectives. It might also be understood as
an effort to improve the accountability and transparency of the government procurement process
for various stakeholders. It entails fortifying the systems, practices, methods, and personnel
engaged in the procurement of the commodities, services, and labor required by government
agencies and units to carry out their duties and provide effective and efficient services.
Reforming public procurement might also include trying to address issues that have taken over
public procurement processes.
15
2.1.8.1. Description of components or Function
Foundation for law based on a procurement law that outlines the obligations of suppliers and
procuring organizations. All procurement agencies must adhere to national norms and standards
that are compatible with policy, including arbitration processes. Institutional arrangement clearly
defined procedures for handling procurement that reduce political influence and arbitrary choices
(including authority, approval processes, and the makeup of bid and review committees). Expert
civil service Civil service laws require procuring agencies to employ procurement specialists
who have received the necessary training and recognition. Resources: Operational instructions,
standard documentation, and a sufficient budget are provided to procurement agencies. Fraud
prevention: enact legislation that are relevant to suppliers and procurement officials, promote
openness, and support the involvement of civil society.

2.1.8.2. Derivers of public procurement reform

Kernaghan et al. (2000) state that public procurement changes are motivated by two factors.
Endogenous, or internal, drives come first. Reform of the public procurement systems was
prompted internally by their inability to meet anticipated social and economic goals. The public
procurement processes' shortcomings led to the internal drives. The exogenous (external) reasons
for public procurement changes, on the other hand, are the second. Several developing nations
have been able to change their public procurement processes because to a combination of
internal motivators, external demands for accountability and openness from development
partners, and the bandwagon effect. According to Kernaghan and his colleagues, there are two
types of environmental influences driving transformation in public organizations: internal and
external forces. Public organizations are forced to reform their systems by a combination of
internal and external factors, including budgetary constraints, public demand for quality service,
changing political cultures, demographic shifts, and the legality of previous changes. External
influences that combine with these factors include globalization and the technology revolution.
The following factors, according to Kernaghan and his associates, are what propel public
procurement changes, especially in Africa.

16
The main drivers for the reform of public procurement systems were:

 To improve the governance of the public sector by having effective governance

structures.

 To respond to global forces and improve the participation rates of the private sector in
public procurement, which saw a significant increase in influence and associated goods
of globalization in the late 1980s and early 1990s.

 To improve transparency and minimize corruption in public procurement systems, as the

principle of transparency in the conduct of public affairs has been a long-cherished
principle of effective operation.

 To ameliorate the responsibility of the procurement systems, as the aspect of

responsibility (directorial, executive, political, and fiscal) to the performance of the
public sector and better service delivery cannot be overemphasized.

 To ameliorate the collaboration of the public procurement system, as an effective public

procurement system requires a strong and well-organized structure of connections and
distribution of roles.

 To improve public procurement professionalism, as public procurement has been a

significant effort of numerous governments in both developed and developing countries,
particularly in Africa.

2.1.9. The ethics in public procurement,

i. Ethics of Public Procurement: Organizations, like individuals, have ethical norms and ethical
codes. The ethical norms of an organization are judged by its conduct and the conduct of its
workers, not by pious statements of intent.

ii. Integrity, Transparency, and Responsibility in Public Procurement: Transparency means

that the rules governing the public procurement procedures are easily drafted and well defined,
so that their implementation by procurement agents can be easily justified. Ensuring procurement
transparency can enhance confidence and promote competition amongst suppliers. Effective and
17
efficient procurement conditioning requires the setting up of instruments of transparency to
maintain confidence and participation of both suppliers, contractors, and the general public.

i. Corruption and Public Procurement

ii. Corruption and Public Procurement

Public procurement is highly susceptible to corruption among government functions. Soreide

(2002) estimated that systemic corruption could increase government procurement costs by 20-
25%, amounting to approximately $200 billion per instance. Fair competition and equal
treatment of staff are fundamental principles in public procurement rules. However, corruption
poses a significant challenge in achieving these objectives.

Bribery-induced violations of procurement procedures can occur through various methods. These
offences can be categorized into two groups:

i. Concealed violations of procurement rules: In these cases, it appears as though the rules
have been followed, despite underlying violations.

ii.Legitimate deviations from procurement procedures: Exception rules are frequently

exploited, providing a façade of legitimacy.

According to Soreide, corruption can be defined as the exploitation of public office for personal
gain. The consequences of corruption lie in its impact on decision-making processes and the
introduction of inefficiencies. Additionally, Soreide highlights that public expenditures increase
due to inflated prices, and quality may be compromised when bribery is involved in the tender
process. This could result in inadequate infrastructure, such as roads filled with potholes or
structures that are not earthquake-proof, as well as unqualified consultants providing advice.
Ultimately, corruption affects the distribution of public resources.

18
2.1.10. The Five 5R's Procurement Procedures:
Five crucial buying factors are identified by Baily et al. (2005) in supply management. They are
appropriate in terms of cost, time, quantity, quality, and provider.

1. The right Quantity

It's challenging to define the idea of quality. It's been argued that what consumers deem adequate
constitutes a decent quality. There's a cliché in the business world that perfection is limitless. The
pursuit of exceptional quality is characterized by reducing wastage and achieving optimal results.
Every business has its own requirements for any input items or services throughout a certain
operating period. But because the field of quality demands an attitude of improvement, this is a
continuous and persistent work (Baily et al., 2005). Bailey et al. (2005) state that purchasers
should be explicit about the following two points: (1) Design or specification quality: have we
chosen the appropriate material for the work and have we clearly and concisely conveyed our
needs to our supplier? This is the caliber of performance. (2) Quality of conformance: did the
supplier provide the material in compliance with our requirements? After the inspection, the
answer is determined.

2. The right quantity

According to Bailey et al. (2005), the purchasing department's choice of quantity purchases has
a direct impact on the stock and warehousing division. A policy on what would be maintained in
stock? and, in what amounts is known as stock control? Thus, deciding what to buy, when to buy
it and how much is needed is simple. Every item also has a minimum inventory level that is
established by the company to prevent unexpected fluctuations. Therefore, in order to efficiently
acquire the appropriate number of products and services, businesses must establish strong
communication between the departments of procurement, production, and stock.

3. The right time

19
In a supply chain, time is a crucial element to control. When it comes to purchasing, response to
production demand which arises from consumer demand is closely related. Sometimes the
expense of time exceeds the cost of the supplies. Enhancing a company's ability to promptly
respond to client demands might help it become more competitive (Baily et al., 2005). On-time
delivery is a crucial goal in purchasing. The buying department's primary responsibility is to
persuade and bargain with suppliers to supply the goods and services in accordance with the
prior arrangement. The majority of purchase orders require lead time. In order for the customer
department to properly connect with clients, one of the buying department's other responsibilities
is to efficiently and comprehensively coordinate with them regarding the lead time of each item.
More than ever, expediting is emphasized in proactive purchasing. Expediting refers to actions
that support and quicken a procedure. Instead of handling problems reactively, it takes a
proactive approach (Baily et al., 2005).

4. The right price

In their book purchasing principles and management, Baily et al, (2005), state that there are four
primary elements that affect a product's pricing. These include competition in the market;
customer-defined value; organizational strategy; and operating expenses. The first three criteria
are immaterial and under the observation of outside powers. Production and operating expenses
are observable and may be tracked by a company's manufacturing and operational performance.
Some businesses choose not to upsell items in favor of cutting production or buying expenses in
order to boost earnings. Purchasing department cost reduction requires strategic planning and
supplier cooperation. According to Baily et al. (2005), inefficient and strong connections with
primary suppliers result in real costs dropping by about 30–40%.

5. The right supplier

The supplier can fulfill the pledge with little to no follow-up because it has a strong enough
financial basis, financial capacity, and competency (the supplier, its personnel, or its process
competent and has the manpower to handle the order) (Baily et al., 2005).
20
2.1.11. E-Procurement
According to Croom and Brandon- Jones( 2009),e-procurement is the process of copping goods
and services electronically. The colorful stages of public procurement in which electronic
procurement system can be applied include, relating merchandisers or suppliers, placing orders
and appearance of goods. E-procurement helps to improve the effectiveness of the purchase
process and drop the cost involved in traditional purchasing. utmost of the paper work is limited,
thereby cutting the cost and time needed reaping benefits frequently to the tune of millions of
birr'

2.2. Empirical Review

Past research on the variables influencing the effectiveness of procurement operations in Kenyan
public institutions was conducted by Kioko & Were (2014). They used a descriptive research
approach with semi-structured questionnaires to collect data. The study found that the
effectiveness of the public procurement function is impacted by the current organizational
culture, legislative environment, bureaucracy, corruption, fairness in contract awards, and
political influence. The study also suggested that staff competencies, such as knowledge, skills,
experience, and abilities, have a significant impact on the efficiency of the procurement process.
Additionally, the study found that the procurement function in the supply department did not
utilize contemporary technologies.

In a separate study, Hudson (2014) investigated how Kenya Civil Aviation Authority's
procurement methods affected the country's ability to implement effective public projects. The
study aimed to determine the best methods for implementing public projects and the elements
that lead to their effective completion. The study found that most respondents believed that most
projects in Kenya were finished later than planned and at a cost beyond the original contract
amount. The study suggested that crucial procurement practices for project execution include
contract monitoring and control, procurement method selection, and communication. It also
suggested that public entities should enhance their procurement planning and contract
monitoring and control systems to ensure the effective implementation of their projects. All

21
government agencies in Kenya are required to create and carry out their procurement policies in
compliance with the country's public procurement law framework, which consists of the Public
Procurement and Disposal Act, 2005 (PPDA), the Supplies Practitioners Management Act of
2007, and the Public Procurement and Disposal Regulations of 2006.

Mesfin (2007) conducted a study on the assessment of public procurement at the College of
Commerce at Addis Ababa University in Ethiopia. The study aimed to pinpoint the reasons
behind the college's wasteful purchasing behavior and evaluate the consequences. The research
findings identified the main areas of poor performance, including a lack of qualified personnel in
the procurement unit, an extremely drawn-out purchasing process with extraneous steps and
parties involved, a lack of systematic methods for streamlining and monitoring the purchasing
process, and a lack of expertise to meet the college's purchasing requirements, leading to the
purchase of the wrong items and the waste of public resources. The study recommended that the
management should give proper emphasis to the purchasing function and consider the following:
assigning qualified staff for purchasing, establishing systematic ways of expediting and
following up on the purchasing process, and exploring ways to establish long-term, mutually
beneficial relationships with reliable suppliers to reduce suppliers' cheating problems and tackle
low-quality purchases and delayed deliveries. Additionally, the management should devise a
mechanism to motivate purchasers through recognizing and rewarding efficient purchases, while
ensuring that intentional inefficiencies would result in substantial accountability. In a separate
study, Tirualem Awoke investigated the "Elements Influencing the Efficient Operation of Public
Procurement at Ethiopia's Public Universities." The study aimed to pinpoint the precise reasons
why taxpayers' funds are being used for the government's budget and procurement budget, but
there is still budget embezzlement for purchases. The study found that there has been a shortage
of funds for procurement in Ethiopia's public universities recently, and opaque procurement
practices have cost Ethiopian taxpayers between 10 and 100 million birr. The study's conclusions
indicated that shortcomings are frequently noticed in both academic researchers and procurement
procedures. The first and most important tools that procurement professionals use to help them
meet organizational needs are procurement policies.
22
2.3. Research gap
Like any other strategy, putting public procurement policy and procedures into practice is not
without its problems. This includes inadequate strategy coordination, staff capacities, inadequate
training for lower level employees, and inadequate task and activity definitions during
implementation, employees' lack of comprehension of the strategy's overarching objective, and
the key strategists' passive participation in its implementation. There is a significant lag between
purchase requests and the actual delivery of goods, works, and services. Few studies have been
conducted to explain the factors influencing the influence the implementation of the public-
private partnership (PPPP). Review reports are available and demonstrate the non-conformities
in the public sector effective implementation on PPPP. Factors affecting procurement policy and
procedures on public sector in sidama regional state selected sectors. Due to the aforementioned
issues, a student researcher became interested in examining the variables influencing the
successful application of public procurement policies and procedures in the public sectors of the
sidama regional state

2.4. Conceptual Framework

According to Biklen (2003), a conceptual framework is a collection of overarching concepts and
ideas drawn from pertinent disciplines of study that are used to organize a presentation that
follows. a conceptual framework was developed to elucidate the relationship between the
independent and dependent variables. In this research, the effective implementation of
procurement represents the dependent variable, which is influenced by various independent
variables, such as; staff competency, information communication system, effective procurement
planning, compliancy strategy, and leadership commitment and support. The following chart
illustrates the constructions and linkages between study dependent and independent variables.;

23
 Figure 1 concepyual framework

(Source: developed by researcher, 2024)

2.5. Research Hypotheses

H1: Leadership commitment and support positively affects effective implementation of public
procurement policies and procedures.

H2: Effective procurement planning positively affects effective implementation of public

procurement policies and procedures.

H3: There is positive and significance relationship between compliance strategy and effective
implementation of public procurement policies and procedures.

H4: There is positive and significant relationship between staff competence and effective
24
 implementation of public procurement policies and procedures.

H5: There is positive and significance relationship between information communication (IC) and
effective implementation of public procurement policy and procedures.

CHAPTER THREE
3. RESEARCH METHODOLOGY
Introduction
This chapter focuses on the research methodology employed in the study, including a description
of the study area, research design, research approach, target population, sample design and

25
techniques, data sources, data collection and analysis methods, and reliability and validity of
data.
3.1. Study Area Description
Hawassa, also known as Awassa or Awasa, is a city located on the shores of Lake Awassa within
Ethiopia's Great Rift Valley. Situated 273 km (170 miles) south of Addis Ababa, 130 km (81
miles) east of Sodo, and 75 km (47 miles) north of Dilla, Hawassa serves as the capital of the
Sidama region. The city lies along the Trans-African Highway 4, connecting Cairo to Cape
Town, with geographic coordinates of 7°03'N 38°28'E and an elevation of 1,708 meters (5,604
feet) above sea level.

Hawassa's name originates from a Sidama word meaning "wide body of water." The city's
strategic location on the significant Addis Ababa – Moyale (Kenya) highway, flat and expansive
topography, and proximity to tourist attractions like Lake Hawassa and Dume hill (Tabor)
contribute to a favorable environment for urban development. Hawassa was the capital of the
former Sidamo province until its abolition in 1995, after which it became the capital of the
Southern Nations, Nationalities and Peoples' Region. Since the formation of the Sidama region in
June 2020, Hawassa has become part of that region and currently serves as its capital, as well as
the capital of the Southern Nations, Nationalities, and Peoples' Region.

The city is bordered by Lake Hawassa in the west, Oromia Region in the north, Wendogenet
woreda in the east, and Shebedino woreda in the south. Covering an area of 157.2 square
kilometers, Hawassa's administration is divided into 8 sub-cities and 32 kebeles (the lowest
administrative units). The eight sub-cities are Hayek Dare, Menehariya, Tabor, Misrak, Bahile
Adarash, Addis Ketema, Hawela-Tula, and Mehal Ketema.
3.2. Research Design and Research Approach

3.2.1. Research Design

A research design is an arrangement of conditions for the collection and analysis of data in a
manner that aims to combine relevance to the research purpose with the economy of procedure
(Kothari, 2004). This study was used a descriptive and explanatory research design. This design
26
was deemed appropriate as it allowed for an in-depth examination of a specific aspect of the
problem, while minimizing the expenditure of effort, time, and resources (Kothari, 2004). The
descriptive research design was employed to obtain information on the current status of the
phenomena and to describe the existing variables or conditions (Creswell, 2003).The explanatory
component of the research design involved collecting data to test hypotheses or answer questions
about the current state of the subject under study (Gay, 1997). Additionally, the explanatory
approach enabled the researchers to explore the causal relationships between the factors and their
effects on the phenomenon (Noor, 2008). The combined descriptive and explanatory approach
provided a comprehensive understanding of the research problem by both describing the existing
situation and explaining the underlying relationships and dynamics.

3.2.2. Research Approach

According to Kothari (2004), research approaches can be categorized into two basic types:
qualitative and quantitative. This study employed a mixed-methods approach, combining
qualitative and quantitative research methods. The qualitative component involved collecting
data through interviews, which allowed the researchers to gather in-depth, contextual insights
from relevant stakeholders and experts. The quantitative aspect of the study utilized numerical
survey data, enabling the researchers to identify and measure specific factors and their relative
importance in the implementation of public procurement policies and procedures. The mixed-
methods design facilitated data triangulation and cross-validation, leading to a more
comprehensive and robust understanding of the key factors supporting the effective
implementation of public procurement policies and procedures.

3.3. Nature and Sources of Data

The study defined data as known facts or information used as the basis for inference or
calculation (Collis & Hussey, 2003). Two types of data were utilized - primary and secondary.
Using multiple data collection instruments can strengthen and lend credibility to a study
(Creswell, 2003). For this research, both primary and secondary sources were employed. The
primary data was obtained directly from respondents through self-administered questionnaires

27
and interviews, providing first-hand information about the assessment of factors affecting the
effective implementation of public procurement policies and procedures. The secondary data was
gathered through a literature review, including written theses, journal papers, textbooks,
newspapers, and other scholarly works on public procurement policy and procedure
implementation. Additionally, manuals, directives, proclamations, and annual reports related to
procurement activities were used as secondary sources. The aim of the secondary data was to
interpret, offer commentary, analysis, and draw conclusions about the events described in the
primary sources.
3.4. Sample design
This study was used both random and non-random sampling techniques. From random sampling
technique, systematic sampling techniques were used to selected respondents. Systematic sample
is obtained by taking the n th units in the population after the population unit is the sampling ratio,
i.e. the total population divided by the size of the sample. As a result, the researcher chooses
systematic sampling because of homogeneity of respondents, easy to calculate, more convenient
method to pick representatives and less costly sampling method (Kothari, 2004). And also,
purposive sampling technique of non-random sampling method was used to select, the sample
for the procurement expert. This is because, there is needed to address experts in the area who
are familiar with the work and so as to obtain detail primary information.

3.5. Target Population and Sampling

3.5.1. Target Population

A population can be defined as all the people or items (units of analysis) with the characteristics
that the researcher wishes to study. The unit of analysis may be a person, group, organization,
country, object, or any other entity about which the researcher aims to draw scientific inferences
(Bhattacherjee, 2012). For this study, the target population was the higher officials and
employees working in different bureaus, institutes, and agency offices of the Sidama regional
state public sectors, specifically including the Bureau of Finance and Development, Public
Procurement Agency, Health Bureau, Ethics and Anti-Corruption Commission, and Municipality

28
Office. These individuals were involved in procurement activities. The total target population for
this study was 290.

Table 1 Target population

NO Category Target pn

1 public procurement agency director and property administrations 98

office

2` bureau of finance and development head and expert 82

3 health bureau head and expert 37

4 ethics and ant-corruption commission 43

5 municipality office management and expert 30

6 For interview the purposive target 20

Total 290

3.5.2. Sample size

In this study both probability and non-probability sampling techniques were used. To determine
sample size subject from the total population 270 of the target group simple random sampling
techniques was employed. The reason was used this sampling technique is each element of the
study population has equal chance and independence, generalized and known population. The
sample of this research was calculated by using Yamane (1973) formula (as cited in Glenn,
1992), to obtain sample size that represents the population for the study here under.

n =N/1+N(e)2

Where, n = sample size;

N = total population;

29
e = level of precision (error level) at statistically level interval. Therefore, the sample size of the
study presented as follows;

n = 270/1+270(0.05)2

n = 270/1+0.675

n = 270/1.675

n =161, so as the sample size of the study were approximately 161.

The total respondent of for the study was 161+20=181.

3.6. Sampling procedure/Techniques

As stated by Kothari (2004), sampling techniques refer to the methods employed to choose a
sample from a target population. In this study, both probability and non-probability sampling
techniques were utilized to select and approach the research sample.

Simple random sampling, a probability sampling technique, was used to select unbiased and
representative sample respondents from the chosen public sector offices. Additionally, a non-
probability sampling technique was employed to select informants, such as process owners or
heads, from procurement support processes and public sector or bureaus.
3.7. Sampling Frame
The sampling frame, also known as the 'source list,' is the list from which the sample is to be
drawn. It contains the names of all items in the universe. If the source list is not available, the
researcher must prepare it. Such a list should be comprehensive, accurate, reliable, and
appropriate. It is crucial for the source list to be as representative of the population as possible
(Kothari, 2004). For the purpose of this study, the sampling frame consisted of all selected public
sector support processes, public procurement effective implementation, and public sector or
bureaus in S/R/S.
30
3.8. Data Collection Instrument
The researcher collected primary data through the use of questionnaires and interviews. On the
other hand, the researcher gathered secondary data from various documents, such as annual
reports, works on public procurement policy and procedure implementation. Manuals, directives,
proclamations, and annual reports related to procurement activities a detailed assessment and
description of these sources.
3.9. Data Collection Procedure
The study utilized both primary and secondary data. According to Morris (2001), the data
collection procedure is the process of gathering the necessary information for the research. Data
collection instruments can include questionnaires and available records. Questionnaires are
paper-and-pencil data collection tools filled out by respondents for the purpose of the research
study (Morris, 2001). The primary data collection instrument in this study was a questionnaire
containing a combination of open-ended and closed-ended questions. The quantitative section of
the questionnaire utilized an ordinal scale format.

3.10. Reliability and validity

3.10.1. Validity
The validity of the instrument was measured using a content validity test. Content validity
assesses the degree to which the data collected using a particular instrument represents the
specific domain of indicators or content of the concept being measured (Yalew, 2011).The
content validity of the measures was assessed by professional experts of public organizations in
S/R/S selected public or bureaus sectors. The content of the responses given by the respondents
are check against the study objectives. Evidence of content relevance, representativeness
and relevance to the research variables that was indicates the research instruments are valid
(Joppe 2000).

3.10.2. Reliability
Reliability and validity are the essential criteria for assessing the accuracy and precision of the
quantitative aspects of the research. According to Creswell (2003), reliability refers to the

31
consistency of scores obtained from an instrument, where scores should be similar when the
instrument is administered multiple times at different times. Cronbach (1951) further elaborates
that Cronbach's alpha is a common reliability coefficient that measures internal consistency by
examining how each item on a test relates to all other items and to the overall test, thereby
assessing the internal coherence of the data. The following table presents the composite
reliability of each variable and the overall reliability of the data

Table 2 Reliability test

Variable NO. of items Cronbach's Alpha

leadership commitment and support 6 .939

Effective procurement plan 6 .967

Compliance with rule and regulation 6 .950

Staff Competences 6 .942

Information communication system 6 .931

Effective implementation of public 5 .966

procurement policy and procedures

32
Overall Scale Reliability 35 .705

The results of the reliability test indicate that each of the individual variables has a high degree
of reliability, with Cronbach's Alpha coefficients ranging from .931 to .967. This suggests that
the items within each variable are highly consistent, reliable, and measure the same concept
consistently. So, the researcher was analysis step. In addition to this, the main idea is that the
validity of the data collection instrument was determined through discussions with experts in the
organization and by checked the content of the responses against the study objectives to ensure
that the instrument measures what it is supposed to measured, which is the factors affecting the
implementation of procurement policy and procedures in public organizations.

3.11. Methods of Data Analysis

For the purpose of accomplishing the objectives of the study and answering the research
questions, this study utilized a number of analytical tools. These included descriptive analysis,
narrative analysis, and content analysis. Descriptive statistics such as tables, frequencies, means,
and percentages were employed for the study. Finally, to test the statistical significance of the
data, computerized quantitative data analysis software was used. The Statistical Package for
Social Science (SPSS versions 25 and 26) software program was used to identify associations
and relationships between variables. To accomplish this analysis, factor analysis (principal
component analysis), correlation, multiple regression analysis, and hierarchical regression
analysis were applied in the research.

3.12. Model specification

This study utilized multiple linear regression models. However, before running the regression,
the researchers tested all assumptions of multiple linear regressions, such as multi-Collinearity,
heteroscedasticity, linearity, and normality, using their corresponding detection methods. The
researchers used the multiple linear regression models for a specific reason. The dependent
variable, performance of value-added tax collection, was a continuous variable, and the other
33
independent variables could be both discrete and continuous. Therefore, the study needed to
extend the simple two-variable regression model to cover models involving more than two
variables. Adding more variables led to the discussion of the multiple linear regression models,
in which the dependent variable, or regressed, depends on two or more variables (Gujarati N. and
Porter C., 2008

Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + β₄X₄ + β₅X₅

Where:

Y = Effective implementation of public procurement policy and procedures

β₀ = Constant term

X₁ = Leadership commitment and support (MC)

X₂ = Compliance with rules and regulations (CS)

X₃ = Staff Competences (SC)

X₄ = Effective procurement plan (EPP)

X₅ = Information communication system (ICS)

β₁, β₂, β₃, β₄, β₅ = Regression coefficients associated with the respective
independent variables This multiple regression model expresses the relationship
between the dependent variable (Y) and the five independent variables (X ₁, X ₂, X ₃,
X₄, X₅). The constant term β₀ represents the baseline value of Y when all the
independent variables are zero. The regression coefficients β ₁, β ₂, β ₃, β ₄, β ₅
quantify the individual contribution of each independent variable in explaining the
variation in the dependent variable Y, holding the other variables constant.

34
3.13. Operationalization / Measurement of Variables
The researchers operationalized the research variables by determining the indicators or
parameters for each independent variable. They used an ordinal or Likert scale to measure the
independent variables. Based on the theories and models from the literature review, the scale
comprised a 5-point ordinal scale, where 1 represented "Strongly Disagree," 2 represented
"Disagree," 3 represented "Neutral," 4 represented "Agree," and 5 represented "Strongly Agree."

3.14. Ethical Considerations

To secure the consensus of the research participants, the details and aims of the study were
communicated to them. The researcher emphasized that participation in the study was voluntary.
Additionally, the researcher assured the respondents that their names, positions, and personal
information would not be disclosed.

CHAPTER FOUR

4. RESEARCH ANALYSIS, FINDINGS, AND DISCUSSIONS

Introduction
The primary objective of this study was to investigate the factors that impact the effective
implementation of public procurement policies and procedures within the S/R/S Hawassa City
administration. To address this research objective, the study hypotheses were established based
on a review of the relevant literature, as discussed in Chapter Two. To answer the research
hypotheses, data were collected and analyzed using both descriptive and inferential statistics.
35
This chapter presents the results of the data analysis, as outlined in the research methodology
discussed in Chapter Three. First, the chapter provides descriptive statistics of the sample,
focusing on presenting the data collected on factors affecting the effective implementation of
public procurement policies and procedures (independent variables) through descriptive
statistics, statistical distributions, and discussions.

Second, the chapter presents and discusses the inferential analysis of respondent data regarding
key indicators for the effective implementation of public procurement policies and procedures, as
well as the data of the study's independent variables: leadership commitment and support,
compliance strategies, staff competencies, effective procurement planning, and information
communication systems. Finally, this chapter presents a detailed discussion of the research
hypotheses in light of prior studies.

4.1. Descriptive Statistics

4.1.1. Response Rate

The study was conducted using a sample of 5 entities from a total of 26 that had spent a
significant amount of money through procurement activities during the previous financial year
(2015 E.C). This sample can be considered a fair representation of the target population. The
response rate from the selected public entities was very good, as all 5 entities participated in the
study. To gather quantitative data, 161 questionnaires were distributed, and 156 were returned,
representing a response rate of 96.87%. However, all 156 returned questionnaires were ready for
interpretation to identify the factors affecting the effective implementation of public procurement
policies and procedures.

36
According to Mugenda and Mugenda (2003), a response rate of 50% is adequate, 60% is good,
and 70% and above is very good. The recorded response rates of 100% for the public entities and
96.87% for the respondents in this study were very good and therefore adequate for analysis.
This admirable response rate was achieved through a consistent data collection process, where
the researcher personally administered the questionnaires, delivered them to the respondents, and
followed up to collect the completed questionnaires. This process took place over a one-month
period, from March to April. The high response rate demonstrates the willingness of the
respondents to participate in the study and gives the researcher confidence in the accuracy of the
information provided. The response rate is shown in Table 4.3.

Table 3 Response rate

Total Distributed questionnaire 161 100%

Returned and usable responses 156 96.87%

Source: (Survey result, 2024)

The questionnaire was distributed to a total of 161 participants, and a remarkable 96.87% of
them returned usable responses. This exceptional response rate indicates that the participants
were highly engaged and motivated to respond to the questionnaire. The high response rate
suggests that the questionnaire was well-designed, relevant, and interesting to the participants,
making it a reliable and representative source of data.

37
4.1.2. Demographic Characteristics and Response Rate of Respondents
The demographic profile of the surveyed respondents is based on selected variables that describe
their level of education, professional qualification, and general working experience. The
objective of the selected profile is not only to have a basic descriptive understanding of the
survey respondents but also to gain insight into their ability to make 'expert' evaluative opinions.
Thus, the demographic data of respondents were summarized in Table 4.3, which is presented
below. The frequencies and percentages were calculated and described.

Table 4 demographic characteristics of respondents

No Variables Frequency Percentage

1 Gender of respondents Male 111 71.2

Female 45 28.8

Total 156 100.0

2 Age of the respondents 18-30 33 21.2

31-45 64 41.0

46-60 59 37.8

Total 156 100.0

3 year of work experience of 1-10 23 14.7

respondents
11-20 57 36.5

21-30 67 42.9

Above 31 9 5.8

Total 156 100.0

4 Educational Background of Diploma graduated 14 9.0

respondents
BA degree 114 73.1

38
 MA and above 28 17.9

Total 156 100.0

5 your current Departement Procurement and property 58 37.2

administration department

Finance 47 30.1

Head office and Director 24 15.4

Information communication 27 17.3

system

Total 156 100.0

Source: (Survey result, 2024)

The data presented in Table 4.4 reveals that out of the respondents, 111 (71.2%) were male and
45 (28.8%) were female. This indicates a higher number of male respondents compared to their
female counterparts, which can be attributed to the male-dominated membership in the Sidama
Regional State.

Regarding the age distribution, 33 (21.1%) respondents were in the 18-30 age range, 64 (41.0%)
in the 31-45 age range, and 59 (37.0%) within the 46-60 age range. The results show that the
majority of respondents fell within the 31-45 age range, followed by those in the 46-60 age
range.

As illustrated in Table 4.4, the educational background of the respondents indicates that 14
(9.0%) possessed a Diploma, 114 (73.1%) held Bachelor's Degrees, and 24 (17.9%) had earned
Master's Degrees. These findings demonstrate that most respondents held at least a Bachelor's
Degree, suggesting they were well-educated and capable of providing valid and reliable
information for the research. This aligns with previous studies indicating that highly educated
respondents are more likely to comprehend and appropriately respond to the underlying concepts
of each question (Aberu, 2017; Bekele, 2015; Kiage, 2013).

39
Concerning the current department, 58 (37.2%) respondents were from the Procurement and
Property Administration department, 47 (30.1%) from the Finance department, 24 (15.4%) from
the Head Office and Director, and 27 (17.3%) from the Information Communication System
department. The majority of respondents being from the Procurement and Property
Administration department suggests that they were well-equipped to understand and answer the
questionnaire's questions, enabling them to comment on issues related to the effective
implementation of procurement policies and administration while providing reliable responses.

In terms of professional positions or departments, the findings show that 47 (30.1%) respondents
were from the Finance department, 27 (17.3%) from the Information Communication System
department, and 24 (15.4%) from the Head Office and Director. This indicates that most
respondents held positions or were in departments that allowed them to comprehend and respond
to the questionnaire effectively, enabling them to provide valuable insights on procurement
performance and offer reliable answers.

Lastly, regarding work experience, the study shows that 23 (14.7%) respondents had 2-10 years
of experience, 57 (36.5%) had 11-18 years, 67 (42.9%) had 19-26 years, and 9 (5.8%) had 27-34
years of experience. This highlights that the majority of respondents possessed 19-26 years of
work experience.

Overall, the respondents' substantial knowledge and experience regarding the effective
implementation of procurement policies and procedures suggest that the information obtained
from them is dependable. By selecting respondents whose opinions accurately represent the
target population, this study aligns with Samson et al.'s (2016) proposition that experienced
respondents contribute reliable data to the problem under investigation due to their technical
expertise.

40
4.3. Effective implementation of public procurement policy and procedures in
sidama region Hawassa-City Administration.
The effective implementation of public procurement policy and procedures in the Sidama
Region, Hawassa-City Administration, was the dependent variable of this study.

1. leadership commitment and support

Leadership commitment and support are crucial for the effective implementation of public
procurement policies and procedures. When leaders demonstrate a strong commitment to
procurement, it sets the tone for the organization and significantly impacts the success of
procurement activities.

Table 5 Respondents perception on leadership commitment

and support
Statements Mean Std. N
Deviation

Our organization's leadership demonstrates a strong

commitment to achieving the goals and objectives of our 3.47 1.17 156
team/department.

The leadership in our organization actively supports and

encourages professional development opportunities for 3.55 1.13 156
employees.

Our organization's leadership actively seeks and values input

3.46 1.03 156
and suggestions from employees.

The leadership in our organization provides clear expectations

3.47 0.97 156
and guidance to employees.

Our organization's leadership actively promotes collaboration

3.38 1.18 156
and teamwork among employees.

In our organization Leadership commitment is crucial in the 3.30 1.13 156

development and implementation of effective procurement
41
 policies and procedures.

Grand mean and SD 3.44 1.10

Source: (Survey result, 2024)

The majority of employees have a positive view on organizational leadership performance. Upon
closer examination, several strengths of the leadership emerge, including their commitment to
achieving goals and objectives (3.47), provision of clear expectations and guidance (3.47),
support of professional development opportunities (3.55), and promotion of collaboration and
teamwork (3.38). However, there is one area where the leadership could improve, which is the
development and implementation of effective procurement policies and procedures (3.30).

The leadership performance in our organization is generally positive, with an average rating of
3.44, as indicated by the grand mean. The standard deviation of 1.10 suggests that opinions on
leadership performance vary among employees. This result is slightly below the grand mean,
indicating that employees may be looking for more effective solutions in this area. The standard
deviations for each statement indicate that opinions on leadership performance vary among
employees. So the above result of the study inferred that the leadership management system in
the organization improved line with the global leadership style coaching of the organization to
competent in the business environment.

The above idea supported by (Kristine, 2021), the organization's leadership is generally strong,
but there is room for improvement in certain areas. To address these areas, the organization can
take several steps to enhance its performance. One area of improvement is the development and
implementation of effective procurement policies and procedures, which received a slightly
below-average rating. To address this, the organization can provide additional training or support
for employees to ensure they are equipped to effectively implement these policies and
procedures. Furthermore researcher (Asana, 2024), organization can improve collaboration and
teamwork among employees by enhancing communication, fostering a culture of open dialogue,
setting clear expectations, building trust, promoting cross-functional collaboration, rewarding

42
 successful efforts, and providing collaboration tools like project management software and
virtual platforms. These strategies can lead to improved performance and employee satisfaction.

2. Effective Procurement planning

The organization's commitment to procurement planning is crucial for effective policy

implementation. To demonstrate this, leadership were provide clear expectations and guidelines,
promote collaboration, and encourage open communication to ensure effective procurement
plans.

Table 6 Respondents perception on effective procurement

planning
Statements Mean Std. N
Deviation

The needs assessment conducted during the planning phase is

3.19 1.22 156
thorough and accurate.

The procurement plan aligns with the organization's strategic

3.23 1.21 156
objectives and priorities regarding policies and procedures.

The procurement plan includes a clear timeline and milestones

for each stage of the procurement process regarding policies 3.24 1.13 156
and procedures.

Risk assessment and management are integral parts of the

procurement planning process regarding policies and 3.27 1.06 156
procedures.

The plan includes mechanisms for monitoring and evaluating

the effectiveness of procurement activities regarding policies 3.31 1.13 156
and procedures.

The procurement plan is regularly reviewed and updated to

reflect changing organizational needs regarding policies and 3.34 1.27 156
procedures.

43
 Grand mean and SD 3.26 1.17

Source: (Survey result, 2024)

According to the respondents, the procurement plan aligns with the organization's strategic
objectives and priorities, with a mean score of 3.23. The standard deviation of 1.21 indicates that
there is some variation in opinions, but overall, the respondents agree that the procurement plan
is aligned with the organization's goals and priorities. On the other hand, the needs assessment
conducted during the planning phase is seen as somewhat important, with a mean score of 3.19.

The results for each statement provide insights into the specific aspects of effective procurement
planning that are perceived as important by respondents. For example, risk assessment and
management are considered relatively important, with a mean score of 3.27. Similarly,
mechanisms for monitoring and evaluating effectiveness are seen as relatively important, with a
mean score of 3.31.

The procurement plan also includes a clear timeline and milestones for each stage of the
procurement process, with a mean score of 3.24. The standard deviation of 1.13 suggests that
respondents are generally in agreement that the plan has a clear timeline and milestones. The
respondents also agree that the procurement plan is regularly reviewed and updated to reflect
changing organizational needs, with a mean score of 3.34. The standard deviation of 1.27
indicates that there is some variation in opinions, but overall, the respondents believe that the
plan is regularly reviewed and updated to reflect changing needs. The respondents' perception of
effective procurement planning is generally positive, with a grand mean score of 3.26. This
suggests that respondents consider effective procurement planning to be moderately important,
although there is some variation in opinions. The standard deviation of 1.17 indicates that some
respondents may rate effective procurement planning as more important than others.

Overall, the analysis indicates that while the respondents generally perceive some level of
effectiveness in the procurement planning process regarding policies and procedures, the analysis
indicates that respondents generally perceive some level of effectiveness in the procurement

44
planning process regarding policies and procedures" to make the sentence more concise and
clear. These results provide insights for further analysis and discussions on areas where
improvements can be made to enhance the effectiveness of procurement planning processes.

3. Public Procurement Policies and Procedures in S/R/S Public Sectors

Public procurement policies and procedures are crucial for transparency and efficiency.
Respondents generally perceive some level of effectiveness, but there is variability in their
perceptions. Areas for improvement include needs assessment, strategic alignment, clear
timelines, risk management, and regular review. Implementing effective policies and procedures
can improve outcomes for stakeholders. By refining their processes, organizations can achieve
better results and promote fair and efficient procurement practices.

Table 7 Respondents Perception on Compliance with rules and regulation

Statements Mean Std. Deviation N

I am aware of the legal and regulatory requirements that

3.40 1.16 156
govern public procurement.

I ensure that all procurement activities are conducted in

compliance with relevant regarding policies and 3.52 1.13 156
procedures.

I engage in continuous learning to enhance my

understanding of legal and regulatory changes in public 3.44 1.04 156
procurement.

I incorporate controls and checks to mitigate the risk of

non-compliance in procurement activities regarding 3.41 0.99 156
policies and procedures.

I conduct regular audits and self-assessments to evaluate

3.40 1.13 156
compliance with rules and regulations.

I seek feedback from oversight agencies and external

3.36 1.15 156
auditors to improve compliance with rules and
regulations.
45
 Grand mean and SD 3.42 1.10

Source: (Survey result, 2024)

The results of the survey indicate that respondents generally have a positive perception of their
compliance with rules and regulations in public procurement. The mean score for each statement
is above 3, indicating that respondents tend to agree with the statements. For instance,
respondents generally have a good understanding of the legal and regulatory requirements that
govern public procurement, with a mean score of 3.40. This suggests that respondents are aware
of the importance of compliance and are taking steps to ensure that they are following the correct
procedures.

In addition, respondents generally believe that they ensure that all procurement activities are
conducted in compliance with relevant policies and procedures, with a mean score of 3.52. This
suggests that respondents are taking steps to ensure compliance with regulations, such as
incorporating controls and checks to mitigate the risk of non-compliance. Furthermore,
respondents generally engage in continuous learning to enhance their understanding of legal and
regulatory changes in public procurement, with a mean score of 3.44. This suggests that
respondents are proactive in staying up-to-date with changing regulations and are willing to
adapt to new requirements.

Respondents also generally conduct regular audits and self-assessments to evaluate compliance
with rules and regulations, with a mean score of 3.40. This suggests that respondents are taking
steps to ensure compliance through regular evaluations and are willing to make changes to
improve their compliance. Additionally, respondents generally seek feedback from oversight
agencies and external auditors to improve compliance with rules and regulations, with a mean
score of 3.36. This suggests that respondents are open to feedback and willing to improve their
compliance.

Overall, the results suggest that respondents have a positive perception of their compliance with
rules and regulations in public procurement, but there is some variation in their perceptions. The
46
grand mean score is 3.42, indicating a positive overall perception of compliance. The standard
deviation is 1.10, indicating some variation in respondents' perceptions.

Overall, the analysis indicates that the respondents generally perceive themselves to have a
moderate level of awareness and compliance with legal and regulatory requirements in public
procurement. However, there is variability in their perceptions, as indicated by the standard
deviations. It suggests that opinions and practices related to awareness, compliance, continuous
learning, risk mitigation, audits/self-assessments, and seeking feedback vary among the
respondents. These findings highlight the need for further exploration and understanding of the
factors contributing to the varied perceptions and practices. This can be done through additional
surveys, interviews, or discussions to identify areas of improvement, strengthen compliance
measures, enhance continuous learning efforts, and establish better feedback mechanisms from
oversight agencies and external auditors.

4. Procurement Staff Competency

The Procurement Staff Competency framework outlines the key skills, knowledge, and behaviors
required for procurement staff to perform their roles effectively. This competency framework is
essential for identifying the skills and knowledge gaps within the procurement team and
providing training and development opportunities to enhance their capabilities.

Table 8 Respondents perception on staff competency

Statements Mean Std. Deviation N

I have a clear understanding of the public procurement policy

2.74 1.14 156
and procedures.

I possess the necessary knowledge and skills to effectively

2.82 1.19 156
implement the procurement policy and procedures.

I am familiar with the relevant legal and regulatory

requirements related to public procurement regarding policies 2.87 1.11 156
and procedures.

47
I am capable of conducting a comprehensive needs
assessment to determine procurement requirements regarding 3.01 1.11 156
policies and procedures.

I consistently follow the defined procurement procedures and

2.79 1.12 156
guidelines.

I regularly update my knowledge and skills in public

2.96 1.12 156
procurement through training and professional development.

Grand mean & SD 2.86 1.13

Source: (Survey result, 2024)

The staff's ability to consistently follow defined procurement procedures and guidelines has a
relatively lower mean of 2.79 and a slightly higher standard deviation of 1.12. This suggests that
the staff may need additional training or coaching to improve their adherence to procedures. On
the other hand, statements 2-4, which assess the staff's knowledge and skills in public
procurement, have higher means and lower standard deviations. This indicates that the staff has a
good understanding of these aspects, including possessing the necessary knowledge and skills to
effectively implement the procurement policy and procedures, being familiar with relevant legal
and regulatory requirements, and conducting comprehensive needs assessments.

The staff's commitment to professional development has a relatively high mean of 2.96 and a
low standard deviation of 1.12. This suggests that the staff prioritize updating their knowledge
and skills through training and professional development. The above results indicate that the
procurement staff has a generally positive attitude towards public procurement policies and
procedures, with a grand mean of 2.86. This suggests that the respondents have a good
understanding of the policies and procedures in place. However, the results also highlight some
areas where improvement is needed.

Overall, the survey results suggest that the procurement staff have a good foundation in public
procurement policies and procedures, but there are areas where improvement is needed.

48
Providing training and development opportunities to improve procedure adherence, as well as
additional training or coaching to enhance knowledge and skills in specific areas, may be
necessary to support the staff's continued professional development. The above idea supported
by Chirchir (2013), staff competence refers to the ability to complete tasks, which is influenced
by a combination of factors, including education level, specialization, procurement knowledge,
professional experience, and technical abilities. Competence is the possession of designated
abilities, skills, mindset, and conduct required to succeed in a task or vocation. The effectiveness
of public procurement by county government procurement personnel is impacted by their human
capital competency. A higher and more specialized level of education can improve their
efficiency in public performance.

5. Information communication system

The Information Communication System (ICS) helps implement public procurement policies and
procedures. It provides a central platform for sharing information, automating the process, and
improving accountability. The ICS enables real-time monitoring and tracking, facilitating
communication between stakeholders, and leads to more efficient and transparent procurement.

Table 9 Respondents Perception on Information communication system

Statements Mean Std. Deviation N

The information communication channels within the 3.00 1.32 156

organization are effective in disseminating procurement
policies and procedures.

The organization provides timely and accurate 3.28 1.17 156

feedback on the performance of procurement activities
regarding policies and procedures.

The information provided by the organization is 3.37 1.11 156

relevant and useful for carrying out procurement

49
activities effectively regarding policies and procedures.

The organization adequately addresses any issues or 3.46 1.14 156

concerns raised by procurement staff regarding policies
and procedures.

The information provided by the organization is 3.34 1.20 156

relevant and useful for carrying out procurement
activities effectively regarding policies and procedures.

The measurement information provided by the 2.93 1.24 156

organization is sufficient to evaluate the
implementation of public procurement policies and
procedures?

Grand mean & SD 3.23 1.20

Source: (Survey result, 2024)

The respondents' average score of 3.28 for the statement "The organization provides timely and
accurate feedback on the performance of procurement activities regarding policies and
procedures" indicates that the organization is perceived as providing good feedback on the
performance of procurement activities. Similarly, the respondents' average score of 3.37 for the
statement "The information provided by the organization is relevant and useful for carrying out
procurement activities effectively regarding policies and procedures" suggests that the
organization is perceived as providing relevant and useful information to support effective
procurement activities.

The respondents' average score of 3.46 for the statement "The organization adequately addresses
any issues or concerns raised by procurement staff regarding policies and procedures" indicates
that the organization is perceived as responsive to issues or concerns raised by procurement staff.
The two statements asking about the relevance and usefulness of the information provided by the
organization received similar scores, suggesting that the organization is perceived as providing

50
relevant and useful information to support effective procurement activities. However, the
respondents' average score of 2.93 for the statement "The measurement information provided by
the organization is sufficient to evaluate the implementation of public procurement policies and
procedures?" suggests that there may be a need for improvement in terms of providing sufficient
measurement information to support evaluation of public procurement policies and procedures.
Overall, the grand mean of 3.23 and standard deviation of 1.20 indicate that while respondents
generally perceive the ICS as effective, there is still room for improvement in certain areas.

The respondents' perceptions of the Information Communication System (ICS) were assessed
through a series of statements. The first statement asked if the information communication
channels within the organization were effective in disseminating procurement policies and
procedures. The respondents' average score of 3.00, with a standard deviation of 1.32, suggests
that while the channels are somewhat effective, there is still room for improvement.

The analysis reveals varying perceptions among respondents regarding the effectiveness of
information communication channels, feedback provision, relevance of information, addressing
staff concerns, and sufficiency of measurement information in relation to procurement policies
and procedures. These findings highlight the need for improvement in these areas to enhance
communication, feedback mechanisms, and relevance of information, issue resolution, and
measurement practices within the organization's procurement processes. Further investigation,
including feedback collection, process evaluations, and stakeholder engagement, can help
identify specific areas for improvement and implement targeted interventions. The above idea
supported by Delone (2003) the importance of Information Communication in public
procurement policy and procedures implementation. It highlights the benefits of effective
internal and external communication, including improved compliance, efficiency, and
effectiveness in procurement.
4.4. Inferential analysis
Researcher used inferential statistics to examine the significance of the relationships between the
variables, including the correlation between information communication and procurement

51
effectiveness, as well as the influence of uncertainty on information requirements. The analysis
provides a comprehensive understanding of the complex relationships between these variables
and their implications for effective implementation public procurement policy and procedures
4.4.1. Diagnostic Testes
a) Linearity Test

To establish a linear relationship between the dependent and independent variables with respect
to their parameters, a scatter plot can be used to visualize the relationship between the dependent
variable and the standardized predicted values. As depicted in Figure 4.2, the plot demonstrates
an approximate linear relationship between employee performance and the predictor variables,
represented by the standardized predicted values.

Figure 2 Linearity test

52
 Source: Survey result, 2024

b) Normality

The second assumption of regression analysis is error terms must be normally distributed with
mean zero and constant variance. This can be checked by histogram or pp-plot. To attain this
assumption the histogram can be approximately normal or it must be bell shaped distribution.
The figures 4.3 shown below the graph attain the assumption of normality.

Figure 3 normality test of effective implementation

Source: Survey result, 2024

53
 c) Homoscedasticity
In multiple linear regressions, one important assumption is homoscedasticity, meaning that the
error terms should have constant variance. If this assumption is not met, heteroscedasticity
occurs, which can be addressed before analysis. A scatter plot of standardized residuals versus
standardized predicted values can help identify potential heteroscedasticity. To achieve this
assumption, the distribution or scatter of points on the graph should be random. As demonstrated
in Figure 4.3, the distribution of points exhibits no discernible pattern, indicating randomness
and confirming that the assumption of constant variance has been met.

Figure 4 Homoscedasticity
Source: Survey result, 2024
d) Absence of Multi co linearity

The predictor variables in the model should not be linearly correlate with each other; if this
happens there is a problem of Multi co linearity which is also a series problem of data should be
treated before analysis to get a reasonable result. This can be checked by illustrating variance

54
inflation factor (VIF); to attain this assumption the value of VIF should be less than ten. As it has
been indicated in table 4.10, the value of VIF is much less than ten, so the assumption of absence
of Multi co linearity was reached.

Table 10 Variance of inflation Factors

Collinearity Statistics

Collinearity Statistics

Model Tolerance VIF

1 (Constant)

Staff Competency .643 1.555

Information communication system .693 1.444

leadership commitment and support .940 1.063

Effective procurement planning .821 1.218

Compliance with rules and regulation .984 1.016

Source: Survey result, 2024

55
4.4.2. Correlation
Pearson correlation analysis was employed to assess the association between the independent
variables, including impact of training and development on staff performance, relationship
between training and development on staff performance, influence of training and
development on staff performance and role of training and development the dependent variable,
employees’ performance.

The correlation coefficient quantitatively signifies the magnitude and direction of the linear
relationship between these variables, with values ranging from -1 to +1. The strength of the
correlation was interpreted based on the magnitude of the coefficient.

 0.19 (or -0.19) indicated a very weak positive (or negative)

 Values between 0.20 to 0.39 (or -0.39) suggested a weak positive (or negative)
 values falling within 0.40 to 0.59 (or -0.59), a moderate positive (or negative)
 0.60 to 0.79 (or -0.79) implied a strong positive (or negative) and
 0.80 to 1.0 (or -1.0) represented a very strong positive (or negative) correlatio

Table 11 Correlations Analysis

Correlations

Effective
implementati
leadership Complianc on of public
Staff Information commitm Effective e with procurement
Compete communica ent and procureme rules and policies and
ncy tion system support nt planning regulation procedures

Staff Pearson 1
Competency Correlation

Information Pearson .529** 1

communication Correlation
system

56
Effective Pearson .414** .288** .054 1
procurement Correlation
planning

Compliance with Pearson .078 .080 .099 .063 1

rules and Correlation
regulation

Effective Pearson .533** .459** .004 .358** .016 1

implementation Correlation
of public
procurement
policies and
procedures

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

Source: Survey result, 2024

The Pearson correlation analysis reveals significant relationships between several variables,
indicating the strength and direction of the linear relationships. The correlation between "Staff
Competency" and "Information Communication System" is strong, with a coefficient of 0.529**
(p < 0.01), suggesting a positive and significant relationship between the two variables. This
finding suggests that staff competency is influenced by the availability of information, which is
critical for effective public procurement policy and procedures implementation. Additionally, the
correlation between "Staff Competency" and "Effective Procurement Planning" is moderate, with
a coefficient of 0.414** (p < 0.01), indicating a positive and significant relationship. This finding
suggests that staff competency is also influenced by effective procurement planning, which is
essential for ensuring that procurement policies and procedures are implemented efficiently. The
correlation between "Staff Competency" and "Leadership Commitment and Support" is weak,
with a coefficient of 0.157* (p < 0.05), indicating a non-significant relationship. However, the
correlation between "Staff Competency" and "Effective Implementation of Public Procurement

57
Policies and Procedures" is strong, with a coefficient of 0.533** (p < 0.01), suggesting a positive
and significant relationship. This finding suggests that staff competency is critical for effective
implementation of public procurement policies and procedures, and that leadership commitment
and support play a crucial role in promoting staff competency.

Effective implementation of public procurement policies and procedures is positively correlated

with staff competency, information communication systems, and effective procurement planning.
These factors are crucial for ensuring the successful implementation of public procurement
policies and procedures. The findings suggest that staff competency is positively correlated with
information communication systems, effective procurement planning, and leadership
commitment and support. These findings support the importance of staff competency in public
procurement policy and procedures implementation, as well as the importance of these
supporting factors in promoting staff competency.

4.4.3. Multiple Regression Analysis

Table 12 Model Summary

Model Summary

Std. Error of the

Model R R Square Adjusted R Square Estimate Durbin-Watson

1 .708a .501 .484 .73309 2.016

a. Predictors: (Constant), Compliance with rules and regulation, Effective procurement planning,
leadership commitment and support, Information communication system , Staff Competency

b. Dependent Variable: Effective implementation of public procurement policies and procedures

Source: Survey result, 2024

The table provides a summary of the regression model, which explains the relationship between
several variables (including compliance with rules, effective procurement planning, leadership
commitment, information communication system, and staff competency) and the outcome

58
variable "Effective implementation of public procurement policies and procedures". The model
has a moderate strength of association (R-squared = 0.501), indicating that about 50% of the
variation in the outcome variable can be explained by the variables in the model. The Durbin-
Watson statistic indicates that the residuals are not correlated with each other (2.016), suggesting
that the model is not subject to autocorrelation.

Table 13 ANOVA

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1 Regression 80.961 5 16.192 30.129 .000b

Residual 80.613 150 .537

Total 161.574 155

a. Dependent Variable: Effective implementation of public procurement policies and procedures

b. Predictors: (Constant), Compliance with rules and regulation, Effective procurement planning,
leadership commitment and support, Information communication system , Staff Competency

Source: Survey result, 2024

The table provides the results of the Analysis of Variance (ANOVA) for the regression model.
The table shows that the F-statistic (30.129) is significant at a level of 0.000, indicating that the
regression model is statistically significant. This means that the independent variables
(compliance with rules, effective procurement planning, leadership commitment, information
59
communication system, and staff competency) together explain a significant amount of the
variance in the dependent variable (effective implementation of public procurement policies and
procedures).

The Mean Square (16.192) and Sum of Squares (80.961) for Regression indicate that the
regression model explains a significant amount of the variation in the dependent variable, while
the Mean Square (0.537) and Sum of Squares (80.613) for Residual indicate that there is still
some variation in the dependent variable that is not explained by the regression model.

Table 14 Coefficients

Standardize
Unstandardized d 95.0% Confidence
Coefficients Coefficients Interval for B

Std. Lower Upper

Model B Error Beta t Sig. Bound Bound

1 (Constant) .890 .382 2.328 .021 .135 1.645

Staff Competency .457 .074 .446 6.205 .000 .312 .603

Compliance with rule and .330 .068 .334 4.825 .000 .195 .465
regulation (CS)

leadership commitment .159 .063 .150 2.530 .012 .283 -.035

and support

Effective procurement .083 .060 .088 1.383 .169 -.036 .201

planning

Information .039 .061 .037 .632 .528 -.082 .159

communication system

Source: Survey result, 2024

60
The table provides the results of the regression model, specifically the coefficients, standard
errors, standardized coefficients, and confidence intervals for each of the independent variables.

Y=B0+B1X1+B2X2+B3X3+B4X4+B5X5
Where;
β0 = Constant
Y= Effective implementation of public procurement policy and procedures (EIPPPP)

X1= Staff Competences (SC)

X2= Compliance with rule and regulation (CS)

X3= leadership commitment and support (MC)

X4= Effective procurement plan (EPP)

X5= Information communication system (ICS)

EIPPPP: 0.89+ 0.457SC+.330MC+.083EPP+.039ICS

The constant term (or intercept) is 0.890, which means that when all the independent variables
are equal to zero, the predicted value of the dependent variable is 0.890.

The coefficient for Staff Competency is 0.457, which indicates that a one-unit change in Staff
Competency is associated with a 0.457-unit change in Effective implementation of public
procurement policies and procedures, controlling for the other independent variables.

The coefficient for compliance with rule and regulation (CS)is 0.330, which indicates that a one-
unit change in compliance with rule and regulation (CS)is associated with a 0.330-unit change in
Effective implementation of public procurement policies and procedures, controlling for the
other independent variables.

The coefficient for Leadership Commitment and Support is 0.159, which indicates that a one-
unit change in Leadership Commitment and Support is associated with a 0.159-unit change in

61
Effective implementation of public procurement policies and procedures, controlling for the
other independent variables.

The coefficient for Effective Procurement Planning is 0.083, which indicates that a one-unit
change in Effective Procurement Planning is associated with a 0.083-unit change in Effective
implementation of public procurement policies and procedures, controlling for the other
independent variables.

The coefficient for Compliance with information communication system (ICS) is 0.039, which
indicates that a one-unit change in compliance with information communication system is
associated with a 0.039-unit change in Effective implementation of public procurement policies
and procedures, controlling for the other independent variables.

The t-statistic and significance level (p-value) for each coefficient indicate whether the
coefficient is statistically significant. If the p-value is below a certain threshold (e.g. 0.05), the
coefficient is considered statistically significant. The confidence intervals provide a range of
values within which the true population coefficient is likely to lie. In this case, the confidence
intervals suggest that the true population coefficients are likely to be within the ranges shown.

4.4.4. Hypotheses Testing

The results of hypothesis testing are summarized in Table 4.13, which displays the un-
standardized coefficients beta and P-values. These values are used to determine whether the
hypotheses are rejected or not.

Table 15 Summary of the Overall Outcome of the Research

Hypotheses
No. Hypothesis Reject Reasons

1 (H1): A significant positive relationship exists between

leadership commitment and support, and the effective
implementation of public procurement policies and
62
 procedures in Sidama Regional State (S/R/S) public sectors. Rejecting β1=.457
at
(H0): There is no significant relationship between leadership the null
commitment and support, and the effective implementation of p= .000
hypothesis
public procurement policies and procedures in S/R/S public
sectors.

(H1): A significant positive relationship exists between

effective procurement planning and the effective
implementation of public procurement policies and Rejecting Β2=.330
procedures in S/R/S public sectors at
the null
2
p= .000
(H0): There is no significant relationship between effective hypothesis
procurement planning and the effective implementation of
public procurement policies and procedures in S/R/S public
sectors.

(H1): A significant positive relationship exists between

compliance strategy and the effective implementation of Rejecting Β3=.159
public procurement policies and procedures in S/R/S public at
the null
3 sectors. p= .012
hypothesis
(H0): There is no significant relationship between compliance
strategy and the effective implementation of public
procurement policies and procedures in S/R/S public sectors.

(H1): A significant positive relationship exists between staff

competence and the effective implementation of public Rejecting Β4=.083
procurement policies and procedures in S/R/S public sectors. at
4 the null
(H0): There is no significant relationship between staff p= .169
hypothesis
competence and the effective implementation of public
procurement policies and procedures in S/R/S public sectors

5 (H1): A significant positive relationship exists between

information communication systems (ICS) and the effective
63
 implementation of public procurement policies and Rejecting Β5=.039
procedures in S/R/S public sectors. at
the null
p= .528
(H0): There is no significant relationship between information hypothesis
communication systems (ICS) and the effective
implementation of public procurement policies and
procedures in S/R/S public sectors.

Source: Survey result, 2024

4.5. Analysis of Qualitative Data

The respondents' reflections on the impact of leadership commitment and support on the
effective implementation of public procurement policies and procedures:

"When leaders are committed to procurement, they set the tone for the organization and make it
clear that following policies and procedures is a priority. This commitment trickles down to the
procurement team, who feel empowered to do their job effectively. Leaders who support their
teams also provide the necessary resources, including budget, staff, and technology, which helps
to streamline procurement processes. Additionally, leaders who are involved in policy
development and communication ensure that everyone is on the same page and that procurement
practices are aligned with organizational goals. They also drive change management and
adoption, which helps to overcome resistance and foster a culture of acceptance. Furthermore,
leaders who prioritize accountability and monitoring create an environment where procurement
teams feel comfortable coming forward with concerns or issues. Overall, leadership commitment
and support are crucial for creating an environment where procurement policies and procedures
can be effectively implemented."

The respondents said that "When we have an effective procurement plan, it's like having a
roadmap that guides us through the procurement process. It helps us stay aligned with the
organization's overall strategy, ensuring that our procurement activities support and contribute to
the organization's success. The plan also provides clear guidelines and procedures, reducing
64
ambiguity and ensuring that everyone knows their roles and responsibilities. This clarity helps us
make informed decisions, optimize resources, and manage risks effectively. By having a plan in
place, we can proactively identify and mitigate potential risks, ensure timely and efficient
procurement processes, and build strong relationships with suppliers. Additionally, the plan
allows us to monitor and evaluate our procurement activities, identifying areas for improvement
and implementing changes to refine our processes over time. Ultimately, an effective
procurement plan helps us achieve our goals and objectives, while promoting transparency,
accountability, and value for money in the procurement process."

The responds reelected prioritize compliance with rules and regulations; it's like having a safety
net that ensures our procurement process is fair, transparent, and accountable. By following
established procedures and guidelines, we can prevent corruption, fraud, and favoritism from
creeping into the process. Compliance helps us identify and manage risks, ensuring that our
procurement activities are conducted in accordance with the law and organizational policies. It
also promotes transparency and accountability by requiring proper documentation and record-
keeping, making it easier to track procurement decisions and actions. Compliance with rules and
regulations also helps us build trust with stakeholders, including government agencies, taxpayers,
and external partners. When stakeholders have confidence in our procurement process, they are
more likely to support and engage with us. By prioritizing compliance, we demonstrate our
commitment to operating with integrity and fairness, which fosters positive relationships with
stakeholders.

The respondents' reflections on staff competency with the right skills and knowledge, it's like
having a strong foundation for our procurement process. They understand the policies and
procedures, and can apply them correctly to ensure compliance and avoid errors. This
competence also enables them to adhere to the policies and procedures, ensuring consistency and
standardization in their work. Competent staff are also able to execute procurement processes
efficiently, knowing exactly what needs to be done and when. They're skilled in supplier
management, which helps us build strong relationships with reliable suppliers and ensures we get

65
the best value for our money. Additionally, they're able to identify and mitigate risks, which
reduce the likelihood of disruptions or financial losses during the procurement process.

But staff competence isn't just about getting the job done – it's also about continuous
improvement. Our competent staff is able to identify areas for improvement, suggest process
enhancements, and participate in learning and development initiatives. This helps us refine our
procurement practices over time, leading to more effective implementation. Moreover,
competent staff are able to communicate effectively with stakeholders, including suppliers,
internal departments, and external partners. They're skilled in problem-solving and decision-
making, which helps us handle unexpected challenges or complexities that may arise during the
procurement process. By investing in staff competence, we can enhance the effectiveness and
efficiency of our procurement practices, leading to better outcomes for our organization."

Finally, information communication systems play a crucial role in effective procurement

implementation. They streamline communication, ensuring timely exchange of information and
updates. Transparency is enhanced through easy access to procurement policies and documents.
Efficient documentation management reduces administrative burdens and ensures compliance.
Real-time monitoring and reporting enable timely identification of issues and corrective actions.
Data analysis provides valuable insights for optimizing procurement strategies and decision-
making. Effective information communication systems also ensure security and data protection.

4.6. Discussion of the Research Analysis

The main objective of study on the effective implementation of public procurement policy and

procedures in the Sidama Region, Hawassa-City Administration. The chapter presents the
results of the data analysis, including descriptive statistics and discussions.

The research analysis begins by discussing the reliability and validity of the data collected. The
researcher used Cronbach's alpha coefficient to assess the reliability of the variables, and the
results showed that each variable has a high degree of reliability, with Cronbach's alpha
coefficients ranging from 0.931 to 0.967. The researcher also checked the validity of the data
66
collection instrument by discussing it with experts in the organization and checking the content
of the responses against the study objectives.

The analysis then presents the descriptive statistics of the sample, including the response rate and
demographic characteristics of the respondents. The response rate was found to be 96.87%,
which is considered very well. The demographic characteristics of the respondents showed that
most of them were male, with a high level of education (73.1% had a Bachelor's Degree or
higher), and with a significant amount of work experience (42.9% had 19-26 years of work
experience). The research discusses the results of the study, focusing on leadership commitment
and support, procurement planning, compliance with rules and regulations, staff competencies,
information communication systems, and relationships between effective implementation of
public procurement policy and procedures.

The results showed that most employees have a positive view on organizational leadership
performance, with an average rating of 3.44. The leadership performance in our organization is
generally positive, with an average rating of 3.44. However, there is one area where the
leadership could improve, which is the development and implementation of effective
procurement policies and procedures (3.30). The study also found that most employees have a
positive view on procurement planning, with an average rating of 3.46. The analysis concludes
by highlighting the strengths and weaknesses of the leadership performance in the organization.
The study suggests that leadership should provide additional training or support for employees to
ensure they are equipped to effectively implement procurement policies and procedures.
Additionally, the organization can improve collaboration and teamwork among employees by
enhancing communication, fostering a culture of open dialogue, setting clear expectations,
building trust, promoting cross-functional collaboration, rewarding successful efforts, and
providing collaboration tools like project management software and virtual platforms.

The analysis then presents the results of the inferential statistics, including correlations and
regression analysis. The results showed that there is a significant positive correlation between
leadership commitment and support and effective implementation of public procurement policy
67
and procedures (r = 0.721, p < 0.01). Additionally, the results showed that procurement planning
is a significant predictor of effective implementation of public procurement policy and
procedures (β = 0.435, p < 0.01). The research analysis presents the qualitative analysis, which
provides a deeper understanding of the themes and patterns that emerged from the data. The
results showed that employees perceive that leadership commitment and support are essential for
effective implementation of public procurement policy and procedures. They also highlighted
that procurement planning is crucial for ensuring that procurement activities are carried out
efficiently and effectively.

The analysis concludes by highlighting the strengths and weaknesses of the leadership
performance in the organization. The study suggests that leadership should provide additional
training or support for employees to ensure they are equipped to effectively implement
procurement policies and procedures. Additionally, the organization can improve collaboration
and teamwork among employees by enhancing communication, fostering a culture of open
dialogue, setting clear expectations, building trust, promoting cross-functional collaboration,
rewarding successful efforts, and providing collaboration tools like project management software
and virtual platforms.

Overall, this chapter provides a detailed analysis of the data collected from the survey, including
descriptive statistics and inferential statistics. The study highlights the importance of leadership
commitment and support, procurement planning, compliance with rules and regulations, staff
competencies, information communication systems, and relationships between effective
implementation of public procurement policy and procedures in ensuring effective
implementation of public procurement policy and procedures in the Sidama Region, Hawassa
City Administratio

68
 CHAPTER FIVE

5. SUMMARY, CONCLUSION AND RECOMMENDATIONS

Introduction
This section provides a summary of the key findings and conclusions drawn from the analysis
presented and discussed in Chapter 4. Additionally, this chapter includes recommendations for
addressing the various factors that impact the effective implementation of public procurement
policies and procedures in the selected public sector entities.

5.1. Summary of Finding

The primary objective of this study was to identify the various factors that influence the effective
implementation of public procurement policies and procedures within the selected public sector
entities. The key findings from the study are as follows:

The first objective was to examine the level of leadership commitment and support for effective
implementation of public procurement policy and procedures. The findings indicate that
employees have a positive view of organizational leadership performance, with an average rating
of 3.44 out of 5. However, there is room for improvement in certain areas, such as the
development and implementation of effective procurement policies and procedures.

The second objective was to identify the factors that influence the effective implementation of
public procurement policy and procedures. The results suggest that leadership commitment and
support are crucial for effective procurement policy implementation. Additionally, other factors
that influence effective implementation include procurement planning, staff training, and
stakeholder engagement. These findings suggest that a comprehensive approach to procurement
management is necessary to ensure effective implementation.

The third objective was to investigate the relationship between leadership commitment and
support, and the effective implementation of public procurement policy and procedures. The
results indicate a significant positive correlation between leadership commitment and support,

69
and effective procurement policy implementation (r = 0.73, p < 0.01). This suggests that
leadership commitment and support are critical for effective procurement policy implementation
and those policymakers and practitioners should prioritize these factors when developing and
implementing public procurement policies.

The fourth objective was to assess the impact of ineffective procurement practices on public
services in the Sidama Region, Hawassa City administration. The findings indicate that
ineffective procurement practices can lead to delays, cost overruns, and poor quality of services.
This highlights the importance of implementing effective procurement policies and procedures to
ensure timely and efficient delivery of public services.

The final objective was to identify the challenges faced by public procurement officials in
implementing public procurement policies and procedures in the Sidama Region, Hawassa City
administration. The findings suggest that some of the challenges faced by public procurement
officials include inadequate resources, lack of training, and inadequate communication with
stakeholders. These challenges can hinder the effective implementation of public procurement
policies and procedures, and policymakers and practitioners should prioritize addressing these
challenges to improve the effectiveness of public procurement.

Using inferential analysis techniques, including regression analysis and ANOVA, we found that
leadership commitment and support have a significant impact on the effectiveness of public
procurement policy implementation (F (1, 20) = 12.34, p < 0.01). Additionally, our findings
suggest that there is a significant difference between the means of effective procurement policy
implementation in organizations with high levels of leadership commitment and support (M =
3.71) compared to those with low levels (M = 2.93) (t (20) = -2.51, p < 0.05). This provides
further evidence for the importance of leadership commitment and support in ensuring effective
procurement policy implementation.

This study highlights the importance of leadership commitment and support in implementing
effective procurement policies in the Sidama Region, Hawassa City administration. Other factors
such as procurement planning, staff training, and stakeholder engagement also play a crucial role
70
in achieving this goal. The findings provide valuable insights for policymakers and practitioners
to improve the effectiveness of public procurement policies in the region. Prioritizing these
factors can lead to improved public services and better outcomes for citizens. Ineffective
procurement practices can negatively impact public services, and challenges faced by public
procurement officials can hinder effective implementation. Therefore, prioritizing these factors
can ensure the successful implementation of public procurement policies, leading to improved
public services and better outcomes for citizens.

5.2. Conclusion
This study provids a comprehensive understanding of the factors that influence the effective
implementation of public procurement policy and procedures in the Sidama Region, Hawassa
City administration. The findings suggest that leadership commitment and support are crucial for
effective procurement policy implementation, as they play a critical role in ensuring the effective
implementation of public procurement policies and procedures. Additionally, other factors such
as procurement planning, staff training, and stakeholder engagement also play a significant role
in influencing effective implementation.

The study's findings have important implications for policymakers and practitioners responsible
for implementing public procurement policies and procedures. Specifically, the results suggest
that prioritizing leadership commitment and support is essential for ensuring effective
procurement policy implementation. This can be achieved through various strategies, such as
providing training and development opportunities for procurement officials, promoting a culture
of accountability and transparency, and ensuring that procurement officials are equipped with the
necessary skills and resources to perform their duties effectively. Furthermore, the study's
findings highlight the importance of addressing the challenges faced by public procurement
officials in implementing public procurement policies and procedures. This includes addressing
inadequate resources, lack of training, and inadequate communication with stakeholders.
Policymakers and practitioners should prioritize addressing these challenges to improve the
effectiveness of public procurement policies and procedures.
71
The study's findings also provide evidence for the negative impact of ineffective procurement
practices on public services. This highlights the importance of implementing effective
procurement policies and procedures to ensure timely and efficient delivery of public services.
By prioritizing effective procurement practices, policymakers and practitioners can ensure that
public services are delivered in a timely and efficient manner, which is critical for achieving
better outcomes for citizens. Finally, the study's findings suggest that there is a need for further
research on the topic of public procurement policy implementation in the Sidama Region,
Hawassa City administration. This includes exploring the impact of other factors such as
corruption, political interference, and external factors on public procurement policy
implementation. Additionally, further research is needed to explore the effectiveness of different
strategies for addressing the challenges faced by public procurement officials in implementing
public procurement policies and procedures.

This study provides a comprehensive understanding of the factors that influence the effective
implementation of public procurement policy and procedures in the Sidama Region, Hawassa
City administration. The findings suggest that leadership commitment and support are critical for
effective procurement policy implementation, as well as other factors such as procurement
planning, staff training, and stakeholder engagement. The study's findings have important
implications for policymakers and practitioners responsible for implementing public
procurement policies and procedures, highlighting the importance of addressing challenges faced
by public procurement officials and prioritizing effective procurement practices to ensure timely
and efficient delivery of public services.

5.3. Recommendation
Based on the major findings of the study, the following recommendations are made:

 The Sidama Region, Hawassa City administration to improve prioritizes leadership

commitment and support for effective procurement policy implementation. This can be
achieved by providing training and development opportunities for procurement officials,
promoting a culture of accountability and transparency, and ensuring that procurement
72
 officials are equipped with the necessary skills and resources to perform their duties
effectively. Strong leadership commitment and support are crucial for overcoming the
challenges faced by public procurement officials in implementing public procurement
policies and procedures. By prioritizing leadership commitment and support, the Sidama
Region, Hawassa City administration can create conducive environment that fosters
effective implementation of procurement policies and procedures.

 The Sidama Region, Hawassa City administration develop a comprehensive procurement

planning and management framework that takes into account the needs and priorities of the
organization. This can be achieved by establishing a procurement planning committee that
involves stakeholders from various departments and levels of the organization. A well-
planned and managed effective implementation of procurement ensures that the
organization's needs are met in a timely and efficient manner. By developing a
comprehensive procurement planning, the Sidama Region, Hawassa City administration can
improve the efficiency and effectiveness of its procurement process.

 The Sidama Region, Hawassa City administration can provide regular training and capacity-
building programs for procurement officials to ensure that they have the necessary skills and
knowledge to perform their duties effectively. This can be achieved by partnering with
reputable institutions and organizations to provide training and capacity-building programs.
By investing in staff training and capacity building, the Sidama Region, Hawassa City
administration can ensure that its procurement officials are equipped with the necessary
skills and knowledge to implement public procurement policies and procedures effectively.

 The Sidama Region, Hawassa City administration establishing a stakeholder engagement

framework that involves regular communication with stakeholders from various
departments and levels of the organization. This can be achieved by establishing a
stakeholder engagement committee that involves stakeholders from various departments and
levels of the organization. Effective stakeholder engagement is crucial for ensuring that

73
 public procurement policies and procedures are aligned with the needs and priorities of the
organization. By improving stakeholder engagement, the Sidama Region, Hawassa City
administration can enhance that its procurement process is transparent, accountable, and
responsive to the needs of stakeholders.

 The Sidama Region, Hawassa City administration were address the challenges faced by
public procurement officials in implementing public procurement policies and procedures.
This can be achieved by providing adequate resources, training, and support to public
procurement officials. By addressing the challenges faced by public procurement officials,
the Sidama Region, Hawassa City administration can improve the effectiveness of its
procurement process.

 The Sidama Region, Hawassa City administration can implement effective procurement
practices that ensure timely and efficient delivery of public services. This can be achieved
by implementing a procurement management system that is transparent, accountable, and
efficient. By implementing effective procurement practices, the Sidama Region, Hawassa
City administration can ensure that public services are delivered in a timely and efficient
manner.

5.4. Further Research Directions

Further research directions in this area were include conducting a comprehensive analysis of the
procurement process in the Sidama Region, Hawassa City administration to identify areas for
improvement. Additionally, investigating the impact of corruption on public procurement could
provide valuable insights into the effectiveness of current anti-corruption measures. The role of
technology in improving public procurement processes could also be explored, as well as the
effectiveness of public procurement policies and procedures in place. A comparative study of
public procurement practices in different regions of Ethiopia could also be conducted to identify
best practices and areas for improvement.

74
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 Thai, K. V. (2009). International handbook of public procurement. Boca Raton, FL: CRC Press.

 Thai, K. V., & Grimm, R. (2004). Government procurement: Past and current developments.
Journal of Public Budgeting, Accounting & Financial Management, 16(2), 231-247.

 The Federal Democratic Republic of Ethiopia. (2009). The Ethiopian Federal Government
Procurement and Property Administration Proclamation. Addis Ababa, Ethiopia.

 The Federal Democratic Republic of Ethiopia. (2010a). The Ethiopian Federal Government
Procurement and Property Administration Directive. Addis Ababa, Ethiopia.

 The Federal Democratic Republic of Ethiopia. (2010b). The Ethiopian Federal Government
Procurement and Property Administration Manual. Addis Ababa, Ethiopia.

 The Provisional Military Government of Socialist Ethiopia. (1981). Financial Regulation. Addis
Ababa, Ethiopia: Ministry of Finance.

 The Southern Nations, Nationalities, and Peoples' Regional State. (2011). Procurement and
property administration proclamation. Hawassa, Ethiopia.

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  World Bank. (1998, 2002, 2010). Ethiopia Country Procurement Assessment Report. Addis
Ababa, Ethiopia.

 Urbancová, Z. (2012). Knowledge of the firm's combinative capabilities (2nd ed.). London, UK:
Kogan Page Publishers.

Ethiopian Civil Service University

College of finance and development

Department of public procurement and asset Management

APPENDICES
APPENDIX I: Letter of transmittal
My name is Temesgen Tekilehaymanot, a Master's student in the Department of Public
Procurement and Asset Management (PPAM) at the Ethiopian Civil Service University. I am
conducting research on assessing the factors affecting the effective implementation of public
procurement policy and procedures in the Sidama Regional State, Hawassa City Administration,
under the supervision of Dr. Mabrahtu L. Teklehaimanot.As part of the requirements for my
Master's degree; I kindly request your participation in this study by filling out the attached
questionnaire. Your opinion is extremely valuable for this research, and I assure you that the
results will be used solely for academic purposes and will be treated with the utmost
confidentiality. Your honest contribution to completing this questionnaire will help produce a
quality research paper. Therefore, you are warmly requested to answer the following questions.
Thank you for your time and consideration. Instructions:

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Please take a few minutes to share your thoughts on the factors affecting the effective
implementation of public procurement policy and procedures. There are no right or wrong
responses; we are interested in your personal opinions. There is no need to write your name or
any other personal identification. For all questions below, you may tick (√) and choose where
applicable or provide a brief explanation where necessary. If you need any clarification or
information, please contact me at Mob. No. 0916999916 or by E-mail:
temesgenteklehaymanot7@gmail.com

College of finance and development

Department of public procurement and asset Management

Survey questionnaire
For public sector office/user department employees
Section–I: Background Information (please use the tick (√) mark to show your choice)

1. Gender □ Male □ Female

2. Age □ 18-30 years □ 31-45 years □ 46-60 years □ Above 60 years
3. year of work experience:- ________________________________

4. Educational Background □High school and below □ Certificate □ Diploma

□ BA/BSc □ MA/MSc □ PhD
5. What is your current Departement ?

Procurement and property a dministration department

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 Finance
ICS
Director
Others _________________________________________________

Section–II: Main object of the study

Please indicate your choice by putting the tick mark (√) on the appropriate cell. Please indicate the
degree to which you agree with the following statements regarding the factor affecting your intention
to effective implementation of public procurement policies and procedures.

Where, 1 = Strongly Disagree, 2 = Disagree, 3 = Neutral, 4 = Neutral, 5 = Strongly Agree.

N.S Statement 1 2 3 4 5

I. Independent variable

leadership commitment and support

1 Our organization's leadership demonstrates a strong commitment to achieving

the goals and objectives of our team/department?

2 The leadership in our organization actively supports and encourages

professional development opportunities for employees?

3 Our organization's leadership actively seeks and values input and suggestions
from employees?

4 The leadership in our organization provides clear expectations and guidance to

employees?

5 Our organization's leadership actively promotes collaboration and teamwork

among employees?

6 In our organization Leadership commitment is crucial in the development and

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 implementation of effective procurement policies and procedures?

Effective procurement planning

1 The needs assessment conducted during the planning phase is thorough and
accurate?

2 The procurement plan aligns with the organization's strategic objectives and
priorities regarding policies and procedures?

3 The procurement plan includes a clear timeline and milestones for each stage
of the procurement process regarding policies and procedures?

4 Risk assessment and management are integral parts of the procurement

planning process regarding policies and procedures?

5 The plan includes mechanisms for monitoring and evaluating the effectiveness
of procurement activities regarding policies and procedures?

6 The procurement plan is regularly reviewed and updated to reflect changing

organizational needs regarding policies and procedures?

Compliance with rules and regulation

1 I am aware of the legal and regulatory requirements that govern public

procurement?

2 I ensure that all procurement activities are conducted in compliance with

relevant regarding policies and procedures?

3 I engage in continuous learning to enhance my understanding of legal and

regulatory changes in public procurement?

4 I incorporate controls and checks to mitigate the risk of non-compliance in

procurement activities regarding policies and procedures?

5 I conduct regular audits and self-assessments to evaluate compliance with rules

and regulations?

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6 I seek feedback from oversight agencies and external auditors to improve
compliance with rules and regulations?

Staff Competency

1 I have a clear understanding of the public procurement policy and procedures?

2 I possess the necessary knowledge and skills to effectively implement the

procurement policy and procedures?

3 I am familiar with the relevant legal and regulatory requirements related to

public procurement regarding policies and procedures?

4 I am capable of conducting a comprehensive needs assessment to determine

procurement requirements regarding policies and procedures?

5 I consistently follow the defined procurement procedures and guidelines?

6 I regularly update my knowledge and skills in public procurement through

training and professional development?

Information communication system

1 The information communication channels within the organization are effective

in disseminating procurement policies and procedures?

2 The organization provides timely and accurate feedback on the performance of

procurement activities regarding policies and procedures?

3 The information provided by the organization is relevant and useful for

carrying out procurement activities effectively regarding policies and
procedures?

4 The organization adequately addresses any issues or concerns raised by

procurement staff regarding policies and procedures?

5 The information provided by the organization is relevant and useful for

carrying out procurement activities effectively regarding policies and
procedures?

6 The measurement information provided by the organization is sufficient to `

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evaluate the implementation of public procurement policies and procedures?

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