THE EFFECT OF MATERIAL MANAGEMENT PRACTICES ON PROJECT PERFORMANCE OF SELECTED BUILDING CONSTRUCTION COMPANIES IN ADAMA

Abstract

The main objective of the study was to investigate the effect of material management on project performance in the case of selected building construction companies in Adama. Quantitative approach was applied in this study. Exploratory research design was used to investigate the effect of the independent variables such as; project planning, purchasing, transportation and storage on the overall project performance. Only permanent employees of the selected building construction companies were considered as a study population. Out of 2,187active permanent employees who have currently been engaged in the companies, a sample of 338 respondents were selected through convenience non-probability sampling technique. A total of 296 valid and usable primary date was collected from this sample respondents through a self-administered questionnaire. Both descriptive and inferential statistics were adopted with the help of SPSS 21.0. The findings of the study indicated that all the independent variables (project planning, purchasing, transportation and storage) were found to have significant effect on project success. Project Planning dimension (β = .450) has relatively the highest effect followed by Project performance (β = .361). But Material transportation (β = .223) and Material Storage (β = .176) have relatively lower contributions to the prediction model. It can be concluded that for employees of some selected building construction companies, these factors are important in assessing overall material management for the success of their specific projects.