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

Abstract

Despite the importance of procurement management units in public procuring entities in Tanzania in terms of procurement functions conducted, the performance of this function is still poor and ineffective. This study focused on the analysis of the relationship of managerial competences in terms of managerial skills on the performance of procurement management unit in public procuring entities located in Dar es salaam and Dodoma regions. The structural equation model was used to explain the existing relationship between managerial competences (technical skills, communication skills, leadership skills, business skills and networking skills ) on the performance of procurement management unit (cost reduction, timely delivery and compliance of procurement rules and regulations. Results revealed that networking skills and leadership skills are significantly related to cost reduction, timely delivery and compliance of rules and regulations. Therefore, these are the key determinants of the performance of procurement management unit in public sectors. However, technical skills, business skills and communications skills are also significant related to cost reduction in public procuring entities whereby, communication skills are significantly related to timely delivery as the indicator of procurement performance in public procuring entities. Finally it was recommended that procurement and supplies managers should be well equipped with these managerial skills so as to improve the performance of procurement management units in terms of the conducted procurement functions in their respective public procuring entities in Tanzania.