Abstract:
This paper investigates the relationship between supplier development
and procurement performance in the public sector. Furthermore, the paper exam ines the moderating role of contract management difficulty on the relationship
between supplier development and procurement performance. Using cross sectional data collected from 179 public procuring entities, the main findings of the
study are two-fold. Firstly, the relationship between supplier development and
procurement performance in public sector is positive and significant (β = 0.2343 and
p = 0.0014). Also, contract management difficulty negatively and significantly
moderates the relationship between supplier development and procurement per formance (β = −0.1447 and p = 0.0190). In this aspect, the influence of supplier
development on procurement performance is negatively affected by contract
management difficulties. The study contributes to the supplier management, pro curement performance, and contract management literature by providing empirical
evidence on the role of supplier development on procurement performance in
developing countries like Tanzania. Also, the conditional effects of contract man agement difficulty on the relationship between supplier development and procure ment performance matter. The study’s findings have important implications for
procurement practitioners in the public sector and policy makers.
