The influence of key performance indicators on procurement effectiveness in local government authorities in Tanzania: A case of the Mwanza City Council

Dorice K. Festo

doi:10.51867/ajernet.7.1.97

Autores

Dorice K. Festo Tanzania Institute of Accountancy (TIA), Tanzania https://orcid.org/0009-0006-6173-7171

DOI:

https://doi.org/10.51867/ajernet.7.1.97

Palavras-chave:

Key Performance Indicators, Local Government Authorities, Procurement Effectiveness, Tanzania

Resumo

This study was conducted to examine the influence of key performance indicators on procurement effectiveness in Tanzanian local government authorities, with Mwanza City Council as a case. It employed one dependent variable (improvement of procurement effectiveness) and three specific objectives (cost savings, quality assurance, and delivery timelines). The theory of stakeholders and lean theory guided the study. It also employed a case study-descriptive research design, with a sample of 86 respondents in MCC from a total population of 110, selected using stratified and judgmental sampling. Close-ended questionnaires were provided to respondents to answer the stated questions. Data were analyzed using descriptive and inferential statistics with the help of SPSS computer software and presented using tables with frequencies and percentages, as well as multiple linear regression analysis to determine the relationship between variables. The study findings indicate that cost savings significantly enhance the improvement of procurement effectiveness. Other results show that quality assurance influences procurement effectiveness and delivery timelines, while procurement effectiveness significantly influences revenue generation and customer satisfaction. The conclusion was made that key performance indicators were vital in influencing the improvement of procurement effectiveness in local government authorities. The study underscores that cost savings, quality assurance, and delivery timelines collectively have a positive relationship with more efficient and effective procurement processes in local government authorities. To sum up, the study recommended that the government should enhance the use of legal and regulatory frameworks governing procurement processes, facilitate investment in technology, and establish capacity-building programs. Also, local government authorities should embrace procurement key performance indicators so as to improve procurement effectiveness. Policy makers should establish data-driven decision-making as well as develop incentives for best practices, and further research should be carried out in other local governments to find out if the same results can be obtained.

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