The Mediation Effect of Procurement Competence on the Relationship between Practices and Performance of the Public Sector Procurement in Tanzania using Higher-order Constructs in SmartPLS

Abstract

Nowadays, organizations are focusing more on operations improvement through
proper management of their supply chains. Procurement management as part of
supply chain management can play a significant role in operations improvement
through better procurement performance. This study examined the determinants
of public procurement performance. Based on the dynamic capability view
together with empirical evidence from the literature a model with two pathways
the direct and indirect path was developed. In the model, the extent of
procurement practices was positively related to procurement performance
through procurement competence. The study used cross-sectional survey data
collected from a sample of 207 key informants from the public procurement sector
in Tanzania. The results indicate significant positive effects for both direct and
indirect paths of procurement practices to procurement performance. However,
the indirect path effect through procurement competence was stronger than the
direct path. Findings demonstrate the importance of procurement competence in
improving procurement performance in the public sector organizations.
Moreover, these results have theoretical, methodological, managerial and policy
implications. The study adds to methodological applications of partial least
square researches especially those involving higher order constructs. To
practitioners, the study highlights procurement competence as a key factor that
need to be considered to improve the performance of procurement management
in organizations.