Supplier monitoring and procurement performance in the public sector in Tanzania: the moderating role of contract management difficulty

Abstract

PurposeThis study aims to examine the effect of supplier monitoring on procurement performance in the Tanzanian public sector, as well as how contract management difficulty moderates the effect of supplier monitoring on procurement performance.Design/methodology/approachIn this paper cross-sectional data were collected from 179 Tanzanian public procuring organizations using a structured survey questionnaire. Confirmatory factor analysis (CFA) and the PROCESS macro were used to analyse the collected data.FindingsSupplier monitoring has a positive and significant relationship with procurement performance in terms of cost reduction, lead times and buyer satisfaction. Furthermore, contract management difficulty has a negative moderating effect on the relationships between supplier monitoring and procurement performance dimensions.Research limitations/implicationsBecause public procurement is governed by laws and procedures, generalization of results should be done with caution. This is because the study is currently limited to Tanzanian public procurement. Apart from contract management difficulty, future research can look at other factors that may be needed to moderate the link between supplier monitoring and procurement performance.Practical implicationsProcurement practitioners must monitor major suppliers’ timeliness, product quality and order accuracy in order to improve procurement performance. Furthermore, proper contract management is required, which necessitates effectively reinforcing procurement contract managers’ responsibilities and providing contract management training for practitioners in order to control anomalies when suppliers and contracts are involved.Originality/valueBy adding a moderating variable, the study adds to the literature on supplier monitoring in public procurement and the on-going debate on supplier monitoring and performance.