European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.9, No.33, 2017 78 Factors Influencing the Optimal Selection of Suppliers in the Telecommunication Sector in Ghana *Evans Ndom 1 Martin Owusu Amoamah 2 1.Department of Purchasing & Supply, Accra Technical Univeristy, P. O. Box GP561, Accra 2.Department of Mathematics & Statistics, Accra Technical University, P. O. Box GP561, Accra Abstract The selection of an optimal supplier has a positive impact on business performance, help reduce costs and promote innovation. With few studies especially in the study of services on the selection of optimal suppliers in Ghana, this paper examines the determinants of vendor selection among the four largest telecommunication companies in Ghana. These companies are MTN, Tigo, Vodafone and Airtel. The paper applied quantitative and qualitative methods based on primary and secondary data. Purposive sampling technique was used in order to segment the study population. A descriptive analysis was performed to examine the factors and their impact on the choice of suppliers. The results indicated that the quality, experience, price, safety and time affect the selection of suppliers. The study recommends that if the cost element should be taken seriously, the quality should not be sacrificed for cost reduction. Keywords: Telecommunication, Optimum, Selection, Sampling. 1.0 Introduction According to Boohene and Agyapong (2011), there is no optimal supplier selection model in the services sector of Ghana. A major cause for this is the lack of knowledge of the determinants of optimal supplier selection. Another reason is that, supply chain has often been associated with the goods and physical products sector. These implies that despite intense competition in the telecommunication industry, most customers have complained frequently about poor customer service and call quality which is an antecedent of lack of defined optimal selection criteria. Indeed, Nimako (2012) suggest that, the type of service that is delivered by service providers are antecedents of the kind of relationship they have with their suppliers. Despite the growth of the telecommunication industry in Ghana, there are little or no studies on the supplier selection criteria and factors that enhance long lasting supplier relationships in the telecom sector of Ghana. Due to dearth of studies on supplier selection in Ghana, this paper seeks to examine the factors that influence optimal supplier selection decision in the telecommunication industry in Ghana. 1.1 Vendor Selection The selection of suppliers is an important decision to an organization and is generally considered a five-phase process, according to Lee and Choy (2002). Realization of the need for a new supplier is the first phase. Determination and formulation of decision criteria is the second phase. The third phase is the design of pre- qualification standards and the fourth is the supplier selection against the features previously recognized. Supplier monitoring selected being the final phase. Boer et al (2001) conducted a study on sourcing support methods. The study examined a four-step process for the selection of suppliers. The selection of a business provider varies from another. Price is considered in some companies as the most important evaluation and selection tool for suppliers while others may prefer time, quality and technology. 1.2 Supplier Selection Boer et al (2001) suggest a four-step process for the selection of suppliers. While some may consider the price as the assessment tool and the largest selection process for providers, others prefer the quality, time and technology. This requires suppliers to upgrade whenever they are trying to build that relationship with partner or buyer companies. There are four main phases in the selection of a supplier by Boer et al (2001). Formulation of the problem as the first step concerns the decision to acquire or not to acquire or to source from existing and new suppliers. Formulation of criteria being the second step as to supplier and the evaluation criteria. The third step is the qualification of potential suppliers and the final step is the analysis of quotation and the final selection of the best assessment of all elements in pairs. In terms of method, several practices have been used to examine the supplier selection criteria. This paper highlights the results on supplier selection criteria, which are not precise. Therefore, it provides a research opportunity to study the case of Ghana since to the best of the authors’ ability; no study has been conducted on supplier requirements in the telecommunications industry in Ghana.