Determinants of Procurement Performance in Parastatal Organizations in Dar es Salaam Region, Tanzania

Masoud, Yussuf A. (2022) Determinants of Procurement Performance in Parastatal Organizations in Dar es Salaam Region, Tanzania. Doctoral thesis, The Open University of Tanzania.

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Abstract

Public procurement is one of the most important functions of the government – it spends about 50% - 70% of the annual budget. The current study examined the determinants of procurement performance in parastatal organizations in Dar es Salaam Region. The specific research objectives were to examine the effects of conflict of interest, monitoring mechanisms, staff procurement knowledge, and political interference on procurement performance. The constructs for these specific research objectives were generated from Principal Agency Theory and Stakeholder Theory. The study used self-administered questionnaires to a sample of 241 heads of user departments randomly selected from 93 parastatal organizations. The study adopted quantitative whereas both descriptive and inferential analyses were used. The Pearson correlation analysis and the multiple linear regression analyses were used to assess the determinants of procurement performance. The findings were thereafter descriptively summarized using frequency tables. All analysis was conducted using IBM Statistical Package for Social Sciences version 23. The findings indicate that staff procurement knowledge and monitoring mechanisms had significant positive influences, political interference had a significant negative influence, and conflict of interest had an insignificant influence on procurement performance. The study recommends that appropriate monitoring mechanisms be put in place. Likewise, procurement practitioners’ knowledge needs to be updated regularly. Additionally, there should be no political interference in the procurement process of parastatal organizations. Keywords: Conflict of interest, staff procurement knowledge, monitoring mechanism, political interference, and procurement performance.

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