RESEARCH JOURNAL OF BUSINESS AND ECONOMIC MANAGEMENT
Integrity Research Journals

ISSN: 2756-6676
Model: Open Access/Peer Reviewed
DOI: 10.31248/RJBEM
Start Year: 2017
Email: rjbem@integrityresjournals.org


Assessing the influence of monitoring and knowledge –related challenges on compliance with public procurement law in North-West, Nigeria

https://doi.org/10.31248/RJBEM2019.036   |   Article Number: D2CF30B91   |   Vol.3 (1) - February 2020

Received Date: 13 December 2019   |   Accepted Date: 13 January 2020  |   Published Date: 28 February 2020

Authors:  Mohammed Lawal Yahaya* , I. A. Hamid-Mosaku , Henry. N. Onukwube and A.J Babalola

Keywords: knowledge, challenges, compliance, monitoring, procurement, public organization.

The increasing cases of non-compliance to public procurement Act (PPA) 2007 is a pervasive problem in public sector procurement of infrastructure, and this development poses a threat to achieving the main goals of enacting the public procurement Act 2007.  Studies have shown that improving the knowledge based of procurement personnel and effective monitoring are correlates of compliance, but the nexus between these parameters and compliance lack empirical validation in the literature. This is aiming at purging the public sector competition, efficiency and transparency. This study explored the influence of knowledge and monitoring on compliance with public sector procurement law in Nigeria. A questionnaire survey involving 143 public sector procurement professionals in North-West Zone, Nigeria was undertaken to assess the influence of monitoring and knowledge related factors on compliance with public-sector procurement. The data were analyzed using partial least square-structural equation modeling (PLS-SEM). The PLS- SEM results show that monitoring and knowledge and compliance with public procurement Act are positively correlated.   Knowledge and monitoring factors were responsible for 0.38 (38%) variance in compliance with PPA. The model goodness of fitness GoF indicated a well fitted figure of 0.537 which is above the threshold baseline. Based on the results therefore, improving monitoring and knowledge of personnel by the bureau of public procurement (BPP) can lead to total compliance with the PPA, hence, only trained and certified procurement personnel should oversee procurement process in all public sector organization.

Agaba, E., & Shipman, N. (2007). Public procurement reform in developing countries: The Ugandan experience. Advancing Public Procurement: Practices, Innovation and Knowledge-Sharing, 2, 373-391.
 
Amaratunga, D., & Baldry, D. (2002). Moving from performance measurement to performance management. Facilities, 20(5/6), 217-223.
Crossref
 
Akter, S., D'Ambra, J., & Ray, P. (2011). Trustworthiness in Health information services: an assessment of a hierarchical model with mediating and moderating effects using partial least squares (PLS). Journal of the American Society for Information Science and Technology, 62(1), 100-116.
Crossref
 
Amato, S., Esposito Vinzi, V., Tenenhaus, M. (2005). A global goodness-of-fit index for PLS structural equation modeling, Technical report, HEC School of Management, France.
 
Artley, W., & Stroh, S. (2001). The performance-based management handbook. Establishing and maintaining a performance-based management program. Pp. 21-26.
 
Azeem, V., (2007). Impact of the Public Procurement Act, 2003 (Act 663) in Ghana Integrity Initiative's Perspective. Paper presented at a Special Forum on Improving Efficiency and Transparency in Public Procurement through Information Dissemination.
 
Becerra-Fernandez, I., & Leidner, D. E. (2008). Knowledge management: An evolutionary view. Armonk, NY: M. E. Sharpe.
 
Bureau of Public Procurement. (2007). Public Procurement Act (2007).
 
Chin, W. W. (1998). The Partial Least Squares Approach to Structural Equation Modelling. In: Marcoulides, G. A. (ed.), Modern methods for business research. Erlbaum, Mahwah, NJ, Pp. 295-336.
 
Cohen, J., (1988). Statistical Power Analysis for the Behavioral Sciences (2nd edition). Lawrence Erlbaum Associates, Hillsdale, NJ, ISBN-13: 9780805802832
 
Creswell, J. W. (2012). Educational research: Planning, conducting, and evaluating qualitative and quantitative research (4th edition), University of Nebraska-lincoln.
 
Dobler, D., & Burt, D. (1996). Purchasing and material management, text and cases (6th Edition). Tata McGraw-Hill Inc. New Delhi.
 
Eldabi, T., Irani, Z., Paul, R. J., & Love, P. E. (2002). Quantitative and qualitative decision-making methods in simulation modelling. Management Decision, 40(1), 64-73.
Crossref
 
Fayomi, I. O. (2013). Public Procurement and Due Process Policy in Nigeria: thrust, prospects and challenges, Peak Journal of Social Sciences and Humanities, 1(4) 39-45.
 
Forgor, E. S. (2007). Proposed amendments to make procurement flexible: The practical experiences of district chief executives with respect to the implementation of the public procurement law, Decentralization Agenda,3rd March 2007. Pp 1-3.
 
Fornell, C., & Larcker, D.F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18, 39-50.
Crossref
 
Gacenga, F., Cater-Steel, A., Toleman, M., & Tan, W. G. (2012). A proposal and evaluation of a design method in design science research. Electronic Journal of Business Research Methods, 10(2), 89-100.
 
Gelderman, K., Ghijsen, P., & Schoonen, J. (2010). Explaining non‐compliance with European Union procurement directives: a multidisciplinary perspective. Journal of Common Market Studies, 48, 243-264.
Crossref
 
Hair Jr, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, G. V. (2014). Partial least squares structural equation modeling (PLS-SEM) An emerging tool in business research. European Business Review, 26(2), 106-121.
Crossref
 
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2010). Multivariate data analysis; Prentice Hall: Upper Saddle River, NJ, USA.
 
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139-152.
Crossref
 
Hair, J. F., Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012). An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of Academic Marketing Science, 40, 414-433.
Crossref
 
Hair, J., Hult, T., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM), Sage publications.
Crossref
 
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the academy of marketing science, 43(1), 115-135.
Crossref
 
Henseler, J. (2017). ADANCO 2.0. 1: User Manual. Kleve: Composite Modeling GmbH & Co.
 
Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. Advance International Marketing, 20(1), 277-319.
Crossref
 
Holsapple, C. W., & Wu, J. (2011). An elusive antecedent of superior firm performance: The knowledge management factor. Decision Support Systems, 52(1), 271-283.
Crossref
 
Hunja, R. R. (2003). Obstacles to public procurement reform in developing countries", in Arrowsmith, S. & Trybus, M (Eds.) Public Procurement: The continuing Revolution. Kluwer International.
 
Jacob, O. A. (2010). Procurement law in Nigeria: Challenge for attainment of its objectives. University of Botswana law Journal, 11, 131.
 
Jibrin, M. S., Ejura, S.B., & Augustine, N. I. (2014) The public procurement reforms in Nigeria: Implementation and compliance challenges. Journal of Asian Business Strategy, 4(11), 149-162.
 
Kakwezi, P., & Nyeko, S. (2010. Procurement processes and performance: Efficiency and effectiveness of the procurement function.
Link
 
Kusi, L. Y., Aggrey, G. A., & Nyarku, K. M. (2014). Assessment of public procurement policy implementation in the educational sector (A case study of Takoradi Polytechnic). International Journal of Academic Research in Business and Social Sciences, 4(10), 260-278.
Crossref
 
Lowry, P. B., & Gaskin, J. (2014). Partial least squares (PLS) structural equation modeling (SEM) for building and testing behavioral causal theory: When to choose it and how to use it. IEEE Transactions on Professional Communication, 57(2), 123-146.
Crossref
 
Memon, A. H., & Rahman, I. A. (2013). Analysis of cost overrun
 
factors for small scale construction projects in Malaysia using PLS-SEM method. Modern Applied Science, 7(8), 78-88.
 
Muhammad, B. A., Adamu, T., & Ladi, B. D. (2015). Appraisal of construction project procurement policies in Nigeria, American Journal of Engineering Research, 4(3) 19-24.
 
Musanzikwa, M. (2013). Public procurement system challenges in developing countries: The case of Zimbabwe. International Journal of Economics, Finance and Management Sciences, 1(2), 119-127.
Crossref
 
Nissen, M. E. (2006). Harnessing Knowledge Dynamics: Principled organizational knowing and learning. Hershey, PA: IRM Press.
Crossref
 
Ogbonna, A. C., & Kalu, I. U. (2010). Public procurement reform in developing countries: A critique of the real estate content in the Nigerian case. International Journal of Management Sciences and Business Research, 1(8) 65-77.
 
Olayiwola, M. K. A., & Oyegoke, A. S. (2010). The effect of public procurement act on budget appropriation on project delivery in Nigeria and its subsequent effects on the supply chain. In W092-Special Track 18th CIB World Building Congress May 2010 Salford, United Kingdom (p. 103).
 
Olusola. S. O., Oluwatosin. T. O., & Agboola. H. O (2016). Nigeria's Public Procurement Law- Puissant Issues and Projected Amendments. Public Policy and Administration Research, 6(6) 73-85.
 
Omagbon, P. (2016). An Assessment of Compliance with the Public Procurement Act by Nigerian Local Government. Journal of Accounting and Financial Management, 2, 1-11.
 
Onyema, M. E. (2011). Challenges and prospects of public procurement practice in Nigeria: An analysis.
Link
 
Public Procurement Act (PPA) (2007). Public Procurement Act (PPA) Annual Report", Nigeria, p.18
 
Ramayah, T., Lee, J. W. C., & In, J. B. C. (2011). Network collaboration and performance in the tourism sector. Service Business, 5, Article number 411.
Crossref
 
Saunders, M., Lewis, P., & Thornhill, A. (2016). Research Methods for Business Students, 7th edition. Pearson Education Limited: London, UK.
 
Tenenhaus, M., Vinzi, V. E., Chatelin, Y. M., & Lauro, C. (2005). PLS path modeling. Computational statistics and data analysis, 48(1), 159-205.
Crossref
 
Trinchera., L., & Russolillio., G. (2010). On the use of structural equation models and PLS path modeling to build composite indicators. A working paper no. 30, University of Macerata, Department of mathematics and statistics, Macerata, Italy.
 
Wong, K. K.-K. (2016). Mediation analysis, categorical moderation analysis, and higher-order construct modeling in Partial Least Squares Structural Equation Modeling (PLS-SEM): A B2B Example using SmartPLS. Marketing Bulletin, 26.
 
World Bank (1996). Nigeria 1999 Country Procurement Assessment Report. Washington, D.C.: The World Bank.
 
World Bank (2004). Uganda Country Procurement Assessment Report Vol. II Main Findings and Recommendations. Operational Quality and Knowledge services, African Region.
 
Yahaya, M. L., Oyediran, O. S., & Onukwube, N. H. (2019a). Challenges of PPA 2007 in the implementation of government policies related to the construction industry. Journal of Civil Construction Engineering, 5(3), 26-40.
 
Yahaya, M., Oyediran, O., & Onukuwbe, H. (2019b). Evaluating factors affecting transaction costs of contractors in public procurement in Nigeria: PLS-SEM Approach. FUTY Journal of the Environment, 13(1), 46-64.
 
Yin, R. K. (2003). Case study research: Design and methods (3rd edition). Sage Publications. Thousand Oaks, California.
 
Zadawa, A. N., Hussin, A. A., & Osmadi, A. (2017). Mediation Model for improving compliance with public procurement manual that affects cost performance of construction projects in Nigeria. International Journal of Applied Engineering Research, 12(23), 14638-14648.