Procurement Practices and Public Project Performance: The Case of Batu town Administration

Abstract

This study provides a comprehensive empirical investigation into the impact of specific procurement practices on the performance of public sector projects in Batu Town Administration, Ethiopia. It moves beyond general assessments to quantify the effects of procurement planning, supplier selection, contract management, and contract monitoring. Adopting a mixed-methods approach, the study combined a cross-sectional survey with qualitative insights. A sample of 131 public sector employees was drawn using stratified random sampling, with data collected via a structured questionnaire, key informant interviews, and focus group discussions. Quantitative data were analyzed using SPSS (version 26) employing descriptive statistics, Pearson correlation, and multiple regression analysis to test the hypothesized relationships. The regression model was highly significant (F = 226.721, p < 0.000) and revealed that the four procurement practices collectively explain 88.4% of the variance in public project performance (Adj. R² = 0.884). All four variables demonstrated a statistically significant positive influence. Contract monitoring emerged as the most potent predictor (β = 0.349, p < 0.001), followed by procurement planning (β = 0.287, p < 0.001), contract management (β = 0.179, p < 0.05), and supplier selection (β = 0.153, p < 0.05). Descriptive analysis further identified contract monitoring as the most deficient practice, indicating a critical area for intervention. The findings provide municipal administrators with a clear, prioritized agenda for reform. Resources should be channeled first towards developing robust contract monitoring frameworks, including digital tools and specialized staff training. Concurrently, strengthening the strategic foundations through enhanced procurement planning and refining supplier vetting processes will create a synergistic effect, leading to more timely, cost-effective, and high-quality public project outcomes. This research addresses a salient gap in public administration literature by focusing on the municipal context of a developing nation, offering a granular analysis of specific procurement functions. The evidence-based prioritization of contract monitoring provides a novel and actionable contribution for policymakers and practitioners in similar contexts, aiming to optimize the use of public funds and improve infrastructure delivery.