Abstract:
Purpose – This study aims to examine the effect of supplier monitoring on procurement performance in the
Tanzanian public sector, as well as how contract management difficulty moderates the effect of supplier
monitoring on procurement performance.
Design/methodology/approach – In this paper cross-sectional data were collected from 179 Tanzanian
public procuring organizations using a structured survey questionnaire. Confirmatory factor analysis (CFA)
and the PROCESS macro were used to analyse the collected data.
Findings – Supplier monitoring has a positive and significant relationship with procurement performance in
terms of cost reduction, lead times and buyer satisfaction. Furthermore, contract management difficulty has a
negative moderating effect on the relationships between supplier monitoring and procurement performance
dimensions.
Research limitations/implications – Because public procurement is governed by laws and procedures,
generalization of results should be done with caution. This is because the study is currently limited to
Tanzanian public procurement. Apart from contract management difficulty, future research can look at
other factors that may be needed to moderate the link between supplier monitoring and procurement
performance.
Practical implications – Procurement practitioners must monitor major suppliers’ timeliness, product
quality and order accuracy in order to improve procurement performance. Furthermore, proper contract
management is required, which necessitates effectively reinforcing procurement contract managers’
responsibilities and providing contract management training for practitioners in order to control anomalies
when suppliers and contracts are involved.
