Analysis of the Relationship between Managerial Competences and the Performance of Procurement Management Units in Public Sector: The Structural Equation Modelling Approach

The procurement management unit (PMU) is of great importance to both organizations in public and private sector (Chepleting and Makokha, 2017). This is because contribution of PMU in any organization relies on the functions that this unit performs for the sake of the procuring entity. The unit is responsible for the co-ordination of procurement (acquisition of supplies) and disposal activities for PE operations (URT, 2011). Also, the unit provides a direct link between the (internal) users and the (external) suppliers (Monczka, et al., 2009).Performance of this unit in public sector is of great concern due to the role of public procurement in social and economic development of the country (Makoye and Juma, 2013). Therefore, procurement activities done in any procuring entity (public or private sector) need to be well controlled because the whole organizational performance is focused on this function (Wanyoyi and Muturi, 2015). Apart from that, about 75% of the Government budget is spent in this activity, so the performance of this unit attracts more attention from stakeholders who are tax payers (Nditi, 2014).A report provided by the Controller and Auditor General (CAG) of Tanzania (2016/2017) revealed that almost eleven (11) entities were audited, procured goods, works and services without having any legal contract with the selected suppliers and/or contractors. Problems associated with procurement activities such as delays in completion of contract works, poor documentation of contracts and poor selection of procurement methods and procurement done without approval of tender board approval have been the major concerns (Matambula and Makayi, 2014, CAG, 2016/2017).Delays in projects have been associated with the selection of tenderers with technical incompetence (Stephen, 2018). The performance of procurement function is affected with poor identification of requirements, unrealistic budgets and inadequate skills of procurement personnel (Mamiro, 2010).