Explaining the Adoption of Deterministic Procurement Strategies to Economically Empower Minority Owned Businesses (MOBs)
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Date
2024-01
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Publisher
African Journal of Accounting and African Studies (AJASSS)
Abstract
During the financial years 2019/20 and 2020/21, audited public entities did not
set aside the mandatory 30% annual procurement volume for preferential
procurement for minority-owned businesses. Thus, the study investigated the
factors that influence the adoption of preferential procurement by public entities
in Tanzania. The study adopted a descriptive cross-sectional design to explain
the factors that influence the adoption of the preferential procurement scheme.
Data was collected using a questionnaire from 122 procurement practitioners in
public entities. The collected data were quantitatively analyzed. The results show
that all aspects under perceptions of performance ability, internal facilitating
conditions, and legislative framework clarity were significantly [p 0.05]
influencing the adoption of the preferential procurement scheme. In light of the
findings, the study concludes that the country isn’t exploiting the full advantages
of preferential procurement in solving unemployment issues and alleviating
poverty. Thus, public entities must develop a sound internal culture of
commitment to social responsibility as a prerequisite to the effective adoption of
preferential procurement. Also, the quality of legislative frameworks
(Procurement Act, regulations, and implementation guidelines) should be
improved with a focus on clarity on the implementation of preferential
procurement.
Description
Keywords
Public Procurement, Minority-Owned Businesses (MOBs), Unemployment, Socially Responsible Procurement