Obtaining the best value for money through procurement planning: can procurement regulatory compliance intervene?

Abstract

PurposeWhile empirical studies establish the importance of procurement planning in achieving value for money (VfM) in procurement, there is scant evidence demonstrating a link between procurement planning and procurement regulatory compliance, and thus VfM. As a result, this study examined how procurement regulatory compliance can be applied when procurement practitioners in Tanzania seek to maximize VfM through procurement planning.Design/methodology/approachA cross-sectional research design was adopted from which data were collected once through a structured questionnaire. The structural equation modeling (SEM) and Hayes' PROCESS macro test for mediation analysis were used to analyze the collected data.FindingsProcurement planning has a significant and positive relationship with procurement regulatory compliance (ß = 0.491, p < 0.001). Procurement regulatory compliance has a significant and positive relationship with VfM in procurement (ß = 0.586, p < 0.001). Results also show that procurement planning is a significant positive predictor of VfM (ß = 0.257, p = 0.005). Furthermore, the bootstrapping confidence intervals revealed that procurement regulatory compliance significantly mediates the relationship between procurement planning and VfM in procurement.Research limitations/implicationsAlthough the study was able to accomplish its overall objective, it is limited in terms of the geographical setting under which the study was conducted. Hence, the generalization of research results should be made with caution as each country has specific public procurement laws and regulations governing the conduct of procurement activities in the public sector.Originality/valueThe study contributes to the growing debate on achieving VfM in procurement activities. The study adds to the literature on public procurement by establishing the mediation effect of procurement regulatory compliance on the quest toward achieving VfM in public procurement.

Do internet marketing capabilities interact with the effect of procedural capabilities for public procurement participation on SMEs’ sales performance?

“…Bryman and Bell (2011) provide that variations and patterns of association can be found when more than one case is looked at, which is what cross-sectional studies do. Since the government movement from the business major city Dar-es-salaam to Dodoma as a capital city, the city has become an emerging market for SMEs who provide goods and services to a number of government entities and agencies (Changalima et al , 2022a).…”

“…Since the government movement from the business major city Dar-es-salaam to Dodoma as a capital city, the city has become an emerging market for SMEs who provide goods and services to a number of government entities and agencies (Changalima et al, 2022a).…”

Procurement physiognomies and creative accounting in Nigerian listed health care firms

“…The article found an incomplete compliance to the procurement sections in the local government. From a differed study, Abdi and Juma (2022) scrutinized how PRC can be used when procurement experts in Tanzania aim to amplify value for money by exploring procurement planning. The research found that PRC suggestively mediates the association between procurement planning and value for money in procurement.…”

Full Issue

“…The monetary value of public expenditure on procurement activities raises academic interest in a variety of public procurement areas in various contexts. As a result, there are literature streams on public procurement performance (Changalima, Mchopa and Ismail 2022;Changalima and Ismail 2019;Kiage 2013), small-and mediumenterprise participation in public procurement (Namagembe, Mpeera and Kalid 2021;Siwandeti et al 2021), and value for money in public procurement (Changalima, Ismail and Mwaiseje 2022;Mchopa 2015;Mchopa et al 2014;Mwaiseje and Changalima 2020;Panga, Mchopa and Kazungu 2015). These studies show that the function of public procurement remains an important research theme for studies on the African continent.…”