Determinants Of Key Account Management Effectiveness The Case Of Ethio Telecom

This study aims to address primarily the determinants of key account management effectivenessrnin the context of Ethio Telecom and additionally to assess the company’s KAM implementationrnpractice. A conceptual model of factors that affect KAM effectiveness was developed andrnhypothesized. The hypotheses were tested with data collected from 35 key players in the keyrnaccount department of Ethio Telecom using structural equation modeling. To evaluate therncompany’s KAM implementation practice, unstructured equation was used. The findings of thisrnstudy show that from the postulated seven determinants of KAM effectiveness (strategy, solution,rnpeople, management, screening, government, and culture), the three (solution; management; andrnscreening) were found significant determinants. In relation to the second objective, in EthiornTelecom a dominantly sales orientation KAM approach has been practiced in which the keyrnaccount managers and sales executives give much emphasis on meeting targets. The criteriarnused to label ‘key account’ status are so open that any big business (in terms of capital, numberrnof employee), or international organization or government administrative (higher level) can joinrnthe status that makes the number of key accounts increase overtime. The scope of the study isrnlimited to a single telecom operator company in Ethiopia; but the findings can also havernpractical use in other industries that have business customers. The study is presented andrnanalyzed from the perspective of the supplier. The findings provide the empirical application ofrnthe KAM model theorized by Zupancic (2008) by incorporating two additional external factorsrnproposed to determine KAM effectiveness. The study contributes to the improvement of KAMrnimplementation in Ethio Telecom particularly

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