Value for money through procurement planning

https://doi.org/10.57044/SAJOL.2024.3.1.2422

Authors

  • Usaid Mehkri Iqra University, Pakistan

Keywords:

Automation, Inventory Control, Supply chain management, Public procurement

Abstract

There is no evidence proving a connection between procurement planning and procurement regulatory compliance, and hence value for money (VFM), despite empirical studies establishing the significance of procurement planning in obtaining VFM in procurement. In order to investigate how procurement practitioners in Tanzania might maximize VFM through procurement planning, this study looked at how procurement regulatory compliance can be used. It was decided to use a cross-sectional research strategy. With the help of a questionnaire, data was accumulated. The data was analyzed using structural equation modelling (SEM) and Hayes' PROCESS macro test for mediation analysis. Planning for purchases has a solid and advantageous link with adhering to procurement regulations (ß 5 0.491, p 0.001). Compliance with procurement regulations is significantly and favourably correlated with VFM in procurement (ß 5 0.586, p 0.001). Additionally, the results demonstrate that procurement planning significantly improves the likelihood of success (ß 5 0.257, p 0.005). Additionally, the bootstrapping confidence intervals showed that procurement regulatory compliance primarily mediated the association between procurement planning and VFM in procurement. The geographical context in which the study was done limits it even though it successfully achieved its ultimate goal. Because each country has unique public procurement rules and regulations controlling procurement operations in the public sector, generalizing the study's findings should be done with caution. The report adds to the ongoing discussion on achieving VFM in procurement activities. By demonstrating the mediation effect of procurement regulation compliance on the pursuit of obtaining VFM in public procurement, the study contributes to the studies focused on public procurement.

References

Adusei, C. (2018). Public procurement in the health services: application, compliance and challenges". Humanities and Social Sciences Letters, 6(2), 41-50. https://doi.org/10.18488/journal.73.2018.62.41.50

Aimable, N., Osunsan, O. K., Florence, I., Comet, K. F., & Sarah, N. (2019). Procurement planning on value for money among selected districts in Southern Province, Rwanda. Journal of Research in Business and Management, 7(1), 34-40.

Amani, D. (2022). I have to choose this university: understanding the perceived usefulness of word of mouth (WOM) in choosing universities among students of higher education. Services Marketing Quarterly, 43(1), 1-16. https://doi.org/10.1080/15332969.2021.1982851

Annual Performance Evaluation Report for Financial Year 2018/19. (2018). In Public Procurement Regulatory Authority (PPRA) (2019).

Annual Performance Evaluation Report for Financial Year 2019/2020. (2019). In Public Procurement Regulatory Authority (PPRA) (2020).

Annual Performance Evaluation Report for Financial Year 2020/2021. (2020). In Public Procurement Regulatory Authority (PPRA) (2021).

Baloch, N. & Rashid, A. (2022). Supply Chain Networks, Complexity, and Optimization in Developing Economies: A Systematic Literature Review and Meta-Analysis. South Asian Journal of Operations and Logistics, 1(1), 1-13. https://doi.org/10.57044/SAJOL.2022.1.1.2202

Chepkesis, K. M., & Keitany, P. (2018). Effect of procurement planning on suppliers performance in public institutions: a case of MOI University. European Journal of Logistics, Purchasing and Supply Chain Management, 6(2), 1-9.

Chikwere, G. U., Dzandu, S. S. K., & Dza, M. (2019). Compliance issues with public procurement regulations in Ghana. International Journal of Business and Management, 14(5), 1-8. https://doi.org/10.5539/ijbm.v14n5p1

Dimitri, N. (2013). 'Best value for money' in procurement. Journal of Public Procurement, 13(2), 149-175. https://doi.org/10.1108/JOPP-13-02-2013-B001

Eyaa, S., & Oluka, P. N. (2011). Explaining non-compliance in public procurement in Uganda. International Journal of Business and Social Science, 2(11), 35-44.

Fan, Y., Chen, J., Shirkey, G., John, R., Wu, S. R., Park, H., & Shao, C. (2016). Applications of structural equation modelling (SEM) in ecological studies: an updated review. Ecological Processes, 5(1), 1-12. https://doi.org/10.1186/s13717-016-0063-3

Flynn, A. (2018). Measuring procurement performance in Europe. Journal of Public Procurement, 18(1), 2-13. https://doi.org/10.1108/JOPP-03-2018-001

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. https://doi.org/10.1177/002224378101800104

Fourie, D., & Malan, C. (2020). Public procurement in the South African economy: addressing the systemic issues". Sustainability (Switzerland), 12(20), 1-23. https://doi.org/10.3390/su12208692

Gambo, N., & Musonda, I. (2021). Procurement planning factors influencing the quality performance of primary healthcare building facilities: a mediation effect of the firm's business partnership. Cogent Engineering, 8(1), 1-16. https://doi.org/10.1080/23311916.2021.1872823

Gatobu, F. H. (2020). Influence of procurement process on the performance of public entities (A case study of Nairobi county government). International Journal of Academic Research in Business and Social Sciences, 10(4), 40-61. https://doi.org/10.6007/IJARBSS/v10-i4/7106

Gidigah, B. K., Agyekum, K., & Baiden, B. K. (2022). Defining social value in the public procurement process for works. Construction and Architectural Management, 29, 2245-2267. https://doi.org/10.1108/ECAM-10-2020-0848

Hashmi, A. (2022). Factors affecting the supply chain resilience and supply chain performance. South Asian Journal of Operations and Logistics, 1(2), 65-85. https://doi.org/10.57044/SAJOL.2022.1.2.2212

Hashmi, A. R., & Mohd, A. T. (2020). The effect of disruptive factors on inventory control as a mediator and organizational performance in the health department of Punjab, Pakistan. International Journal of Sustainable Development & World Policy, 9(2), 122-134. https://doi.org/10.18488/journal.26.2020.92.122.134

Hashmi, A. R., Amirah, N. A., & Yusof, Y. (2020a). The mediating effect of integrated systems on the relationship between supply chain management practices and public healthcare performance: Structural Equation Modeling. International Journal of Management and Sustainability, 9(3), 148-160. https://doi.org/10.18488/journal.11.2020.93.148.160

Hashmi, A. R., Amirah, N. A., & Yusof, Y. (2021b). Organizational performance with disruptive factors and inventory control as a mediator in public healthcare of Punjab, Pakistan. Management Science Letters, 11(1), 77-86. https://doi.org/10.5267/j.msl.2020.8.028

Hashmi, A. R., Amirah, N. A., Yusof, Y., & Zaliha, T. N. (2020b). Exploring the dimensions using exploratory factor analysis of disruptive factors and inventory control. The Economics and Finance Letters, 7(2), 247-254. https://doi.org/10.18488/journal.29.2020.72.247.254

Hashmi, A. R., Amirah, N. A., Yusof, Y., & Zaliha, T. N. (2021a). Mediation of inventory control practices in proficiency and organizational performance: State-funded hospital perspective. Uncertain Supply Chain Management, 9(1), 89-98. https://doi.org/10.5267/j.uscm.2020.11.006

Hashmi, R. (2023). Business Performance Through Government Policies, Green Purchasing, and Reverse Logistics: Business Performance and Green Supply Chain Practices. South Asian Journal of Operations and Logistics, 2(1), 1–10. https://doi.org/10.57044/SAJOL.2023.2.1.2301

Hayes, A. F. (2018). Introduction to Mediation, Moderation, and Conditional Process Analysis: A Regression-Based Approach. The Guilford Press.

Israel, B., Kazungu, I., & Mchopa, A. (2019). Centralized medical supplies procurement and health service delivery in Arusha and Kilimanjaro regions, Tanzania. East African Journal of Social and Applied Sciences, 1(1), 70-79.

Kariuki, M. C., & Wabala, S. (2021). Influence of procurement planning on the procurement performance of selected county governments in Kenya. International Research Journal of Business and Strategic Management, 2(2), 227-248.

Kasoga, P. S. (2021). Heuristic biases and investment decisions: multiple mediation mechanisms of risk tolerance and financial literacy - a survey at the Tanzania stock market. Journal of Money and Business, 1(2), 102-116. https://doi.org/10.1108/JMB-10-2021-0037

Liu, J., Liu, Y., Ma, Y., & Xie, G. (2020). Promoting SMEs friendly public procurement (SFPP) practice in developing country: the regulation and policy motivator and beyond. The Social Science Journal, 1-20. https://doi.org/10.1080/03623319.2020.1799180

Miller, F. A., & Lehoux, P. (2020). The innovation impacts of public procurement offices: the case of healthcare procurement. Research Policy, 49(7), 1-13. https://doi.org/10.1016/j.respol.2020.104075

Muhwezi, L., Musiime, F. T., & Onyutha, C. (2020). Assessment of the effects of procurement planning processes on the performance of construction contracts in local governments in Uganda. Journal of Civil, Construction and Environmental Engineering, 5(6), 151-160. https://doi.org/10.11648/j.jccee.20200506.12

Mwagike, L. R., & Changalima, I. A. (2022). Procurement professionals' perceptions of skills and attributes of procurement negotiators: a cross-sectional survey in Tanzania. International Journal of Public Sector Management, 35(1), 94-109. https://doi.org/10.1108/IJPSM-12-2020-0331

Mwelu, N., Davis, P. R., Ke, Y., & Watundu, S. (2020). Compliance mediating role within road construction regulatory framework. Journal of Public Procurement, 20(3), 209-233. https://doi.org/10.1108/JOPP-12-2018-0052

Mwelu, N., Davis, P., Ke, Y., & Watundu, S. (2018). Compliance within a regulatory framework in implementing public road construction projects. Construction Economics and Building, 18(4), 1-23. https://doi.org/10.5130/AJCEB.v18i4.6362

Namagembe, S., Mpeera, J. N., & Kalid, A. (2021). An examination of SME involvement in public procurement under bid lot sizing. Journal of Public Procurement, 21(4), 370-398. https://doi.org/10.1108/JOPP-04-2020-0031

Obura, C. O. (2020). Procurement planning: the principle of a sound balance between procurement control and achieving value for money. International Academic Journal of Procurement and Supply Chain Management, 3(2), 19-27.

Rasheed, R., & Rashid, R. (2023). Role of service quality factors in word of mouth through student satisfaction. Kybernetes. In press. http://dx.doi.org/10.1108/k-01-2023-0119

Rasheed, R., Rashid, A., Amirah, N. A., & Afthanorhan, A. (2023). Quantifying the moderating effect of servant leadership between occupational stress and employee in-role and extra-role performance. Calitatea, 24(195), 60-68. https://doi.org/10.47750/QAS/24.195.08

Rashid, A. & Rasheed, R. (2022). A Paradigm for Measuring Sustainable Performance Through Big Data Analytics–Artificial Intelligence in Manufacturing Firms. Available at SSRN 4087758. https://doi.org/10.2139/ssrn.4087758

Rashid, A. & Rasheed, R. (2023). Mediation of inventory management in the relationship between knowledge and firm performance, SAGE Open, 13(2), 1-11. https://doi.org/10.1177/21582440231164593

Rashid, A. (2016). Impact of inventory management in downstream chains on customer satisfaction at manufacturing firms. International Journal of Management, IT and Engineering, 6(6), 1-19.

Rashid, A. Rasheed, R., & Amirah, N. A. (2023). Information technology and people involvement in organizational performance through supply chain collaboration. Journal of Science and Technology Policy Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JSTPM-12-2022-0217

Rashid, A., Ali, S. B., Rasheed, R., Amirah, N. A. & Ngah, A. H. (2022a). A paradigm of blockchain and supply chain performance: a mediated model using structural equation modelling. Kybernetes, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/K-04-2022-0543

Rashid, A., Amirah, N. A., Yusof, Y., & Mohd, A. T. (2020). Analysis of demographic factors on perceptions of inventory managers towards healthcare performance. The Economics and Finance Letters, 7(2), 289-294. https://doi.org/10.18488/journal.29.2020.72.289.294

Rashid, A., Rasheed, R., Amirah, N. A., & Afthanorhan, A. (2022b). Disruptive factors and customer satisfaction at chain stores in Karachi, Pakistan. Journal of Distribution Science, 20(10), 93-103. https://doi.org/10.15722/jds.20.10.202210.93

Rashid, A., Rasheed, R., Amirah, N. A., Yusof, Y., Khan, S., & Agha, A., A. (2021). A Quantitative Perspective of Systematic Research: Easy and Step-by-Step Initial Guidelines. Turkish Online Journal of Qualitative Inquiry, 12(9), 2874-2883. https://www.tojqi.net/index.php/journal/article/view/6159/4387

Rweyendela, A. G., & Mwegoha, W. J. (2022). The treatment of climate change impacts and adaptation in the environmental impact assessment of the Standard Gauge Railway project in Tanzania. Climate and Development, 14(3), 239-249. https://doi.org/10.1080/17565529.2021.1911774

Setia, M. S. (2016). Methodology series module 3: Cross-sectional studies. Indian Journal of Dermatology, 61(3), 261–264. https://doi.org/10.4103/0019-5154.182410

Stephen, K. (2021). Use of force account procurement method for development of small and medium contracting firms in Mbeya. International Journal of Finance Research, 2(2), 94–110. https://doi.org/10.47747/ijfr.v2i2.311

Sutinen, J. G., & Kuperan, K. (1999). A socio-economic theory of regulatory compliance. International Journal of Social Economics, 26, 174-193. https://doi.org/10.1108/03068299910229569

Tavakol, M., & Dennick, R. (2011). Making sense of Cronbach's alpha. International Journal of Medical Education, 2, 53-55. https://doi.org/10.5116/ijme.4dfb.8dfd

Välilä, T. (2020). An overview of economic theory and evidence of public-private partnerships in the procurement of (transport) infrastructure. Utilities Policy, 62(100995), 100995. https://doi.org/10.1016/j.jup.2019.100995

Published

2024-01-13

How to Cite

Mehkri, U. (2024). Value for money through procurement planning. South Asian Journal of Operations and Logistics, 3(1), 15–24. https://doi.org/10.57044/SAJOL.2024.3.1.2422

Issue

Section

Articles