Determinants of Key Account Management Effectiveness: The Case of Ethio Telecom

Abstract

Key account management (KAM) is one of the contemporary ways of maintaining enhanced relationships  with strategic business customers named as ‘key accounts’. It helps to build a strategic relationship  particularly in businessto- business marketing. But ‘what factors determine KAM effectiveness’ is not much investigated. So, this study aims to address the determinants of key account management  effectiveness in the context of Ethio Telecom. A conceptual model of factors that affect KAM effectiveness was developed and hypothesized. The hypotheses were tested with data collected from key account department of Ethio Telecom using structural equation modeling. The findings of this study show that from the postulated seven determinants of KAM effectiveness (strategy, solution, people, management, screening, government, and culture), the three (solution, management, and screening) were found significant determinants. The scope of the study is limited  to a single telecom operator company in Ethiopia and analyzed from the perspective of the supplier. The findings provide the empirical application of the KAM model theorized by Zupancic (2008) by incorporating two  additional external factors proposed to determine KAM effectiveness. The study contributes to the  improvement of KAM implementation in Ethio Telecom particularly.

Keywords: Key Accounts, Key Accounts Management, Key Accounts Management Dimensions, Ethio Telecom