Contribution of Procurement Capacity of Public Agencies to Attainment of Procurement Objectives in Infrastructure Procurement

Purpose: Effective procurement of infrastructure is linked to the attainment of the sustainable development goals set by the United Nations. While the capacity of organisations is generally thought to be related to organisational performance, there is a lack of empirical insights concerning the contribution of procurement capacity of public organisations towards the attainment of procurement objectives in infrastructure procurement. Thus, it is unclear which aspects of the capacity of public procurement organisations contribute the most to the attainment of procurement objectives in the procurement of infrastructure. This research sought to address this gap. Design/methodology/approach: The research used a survey of public procurement professionals which yielded 590 responses. Findings: Exploratory factor analysis of 23 organisational capacity items revealed three components of organisational procurement capacity: ‘management of the procurement process’; ‘human and physical resources’; and ‘financial resources and management’. Multiple regression modelling of the relationship between the components and the attainment of 12 procurement objectives further reveals that there is a significant positive relationship between the three components and all the objectives. However, ‘management of the procurement process’ emerged as the greatest contributor to the attainment of seven objectives, whereas ‘human and physical resources’, and ‘financial resources and management’ were the greatest contributor to the attainment of one objective and four objectives, respectively. Originality/value: The study provides strong empirical justification for investment in the development of procurement capacity of public agencies involved in procurement of infrastructure. Furthermore, procurement capacity development of specific capacity components can be prioritised based on the relative contribution of capacity components to the attainment of desired procurement objectives. This should be useful to government policy makers as well as multilateral organisations that fund infrastructure and procurement reforms in various countries.