THE MEDIATING EFFECT OF PROCUREMENT PERFORMANCE ON THE RELATIONSHIP BETWEEN PROCUREMENT GOVERNANCE AND SERVICE DELIVERY: EVIDENCE FROM MINISTRIES, DEPARTMENTS AND AGENCIES IN KENYA

Abstract

The overall goal of the study was to establish the mediating effect of procurement performance on the relationship between procurement governance and service delivery in ministries, departments and agencies (MDAs) in Kenya. To fulfill this goal, a conceptual model was developed based on previously examined literature. A partial least squares structural equation modeling (PLS-SEM) that corresponded to the conceptual model was
also created. This study adopted a descriptive cross-sectional survey research design. To test the proposed relationship, a survey was done and data collected. This study’s population included all public procuring institutions in Kenya. A total of 157 questionnaires were issued. PLS-SEM was used to evaluate the relationship proposed in the conceptual and SEM model of the study. A software with graphical user interface for
variance-based structural equation modeling (SEM) using the partial least squares (PLS) path modeling method known as SmartPLS 3.3.3 software was used in the analysis. The study involved establishing the mediating role of procurement performance in the relationship between procurement governance and service delivery. The mediation test in PLS-SEM required that a bootstrap test be carried out. When the mediator construct
procurement performance is included in the model, this is referred to as the indirect path. The model results for the indirect path was found to be statistically significant at p < 0.001. The direct path results involving relationship between procurement governance and service delivery was statistically insignificant. Furthermore, the total effect results of procurement governance on service delivery without the presence of mediating variable (procurement performance) was analysed and was found to be statistically significant. Full mediation is
indicated when the direct effect is insignificant but the indirect effect is significant, implying that only the indirect effect via the mediator exists. A more comprehensive technique of SEM mediation analysis, which not only checks for mediation's existence or absence but also analyzes the quantity of mediation in terms of variance accounted for (VAF). Furthermore, calculation of the magnitude of the mediation effect using VAF