Effects of supplier selection and supplier monitoring on public procurement efficiency in Tanzania: a cost-reduction perspective

Ismail Abdi Changalima, Ismail Juma Ismail and Alban Dismas Mchopa

Vilakshan - XIMB Journal of Management, 2023, vol. 21, issue 1, 55-65

Abstract: Purpose - This study aims to examine the role of supplier selection and supplier monitoring in public procurement efficiency in terms of cost reduction in Tanzania. Design/methodology/approach - A structured questionnaire was used to collect cross-sectional survey data from 179 public procuring entities in Tanzania. Structural equation modelling (SEM) was used to analyse the collected data. Findings - The findings revealed that supplier selection and supplier monitoring are positive and significant predictors of public procurement efficiency in terms of cost reduction. Research limitations/implications - This study was conducted in Tanzanian public procurement contexts, so generalisations should be made with caution. Also, this study collected cross-sectional data; other studies may consider longitudinal data. Practical implications - This study provides procurement practitioners with insights into selecting the proper suppliers and embracing supplier monitoring to achieve procurement efficiency in terms of cost reduction. Originality/value - This study examines the effects of supplier selection and supplier monitoring on procurement cost reduction as a measure of public procurement efficiency in the Tanzanian context. Consequently, it provides empirical evidence of supplier management practices in the public procurement context.

Keywords: Supplier selection; Supplier monitoring; Procurement efficiency; Public procurement; Cost reduction; Tanzania (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:xjmpps:xjm-04-2022-0077

DOI: 10.1108/XJM-04-2022-0077

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