FACTORS AFFECTING PROCUREMENT PERFORMANCE IN PUBLIC ORGANIZATIONS

Abstract

The study to investigate factors which affect the procurement performance in public organizations in Tanzania was conducted as a case of Arusha Urban Water Supply and Sanitation Authority (AUWSA). The study examined the effect of procurement practices on procurement performance, assessed the influence of resources allocation on procurement performance assessed the influence of supplier relationship management on procurement performance. The study adopted a descriptive research design and used the quantitative approach. A sample of 68 participants was used. The outcomes of Chi square and Fisher exact tests indicates a non-significant difference (p > .05) on the opinions of study participants on factors affecting the procurement performance at AUWSA. The study concluded that procurement ethical practices, e-procurement, adoption of company flexibility on procurement planning, and communication have significant effect on procurement performance at AUWSA. It is as well concluded that procurement performance at AUWSA is influenced by overall resource allocations, proper allocation of human resources and financial resources, appropriate procurement planning and proper allocation of Information Technology (IT). It is also concluded that supplier relationship management (SRM), contract management, effective communication and staff competence positively influence procurement performance. It is recommended that public organizations should adhere to best practices on procurement basing on national and international standards. Public organization should as well develop check list for the best procurement practices and arrange period internal audit on the procurement practices. Public organization should develop suitable SRM system and focus on suppliers' integration. A study on influence of suppliers' integration on performance of public procurement functions is suggested. AUWSA and other public organizations should review their internal procurement policies to incorporate the recommendations that will help in improving procurement performance.