Main Article Content
Abstract
This study aimed to contribute to the debate on Ghana’s Public Procurement Act 663 non-compliance. According to the Ghana Public Procurement Law (Act 663, 2003), compliance with public procurement regulations is mandatory. It aims to combat fraud, illegal and unethical activities in the public sector. This research examined four explanatory factors that influence compliance with public procurement rules. This study applied a quantitative research methodology, correlational research design, and cross-sectional design. Data were collected from 62 regional government procurement entities using a structured questionnaire. Correlation and regression analysis was conducted to test the research questions and hypotheses. The general results of this study indicated mixed findings. Familiarity (H1) and monitoring (H3) were found to be statistically significant in compliance, whereas professionalism (H2) and sanctions (H4) were not statistically significant in compliance and were not supported by the study hypotheses. Hence, the mixed findings on the relationship between professionalism and compliance rules, sanctions and compliance rules require further investigation.
Keywords
Article Details
References
- Act 663, (2003). Ghana Public procurement law (Act 663).
- Act 914, (2016). Ghana Public procurement law (Amendment Act 914, 2016).
- Adam, F., Csaki, C., Prier, E., Bufacchi, V. (2012). Ethical decision making and decision support systems in public procurement – A theoretical discussion. Supply Chain Forum an International Journal, 13(2), 70-81. https://doi.org/10.1080/16258312.2012.11517299
- Adjei, A. B. (2016, May 17). Sole sourcing is an exception: It cannot be elevated to become the norm – Expert. Retrieved from http://www.myjoyonline.com/news/2016/May-17th/sole-sourcing-is-an-exception-it-cannot-be-elevated-to-become-the-norm-expert.php
- Adu-Gyamerah, E. (2013, December 14). SADA operations dominate parliamentary debate. Daily Graphic. https://www.modernghana.com/news/508424/sada-operations-dominate-parliamentary-debate.html
- Ahimbisibwe, A., Muhwezi, M., & Nangoli, S. (2012). Outsourced contracts, buyer-supplier trust, supplier opportunistic behavior and supplier performance in Ugandan public procuring and disposing entities (PDEs). Journal of Public Procurement, 12(4), 435-470. https://doi.org/10.1108/JOPP-12-04-2012-B001
- Alvesson, M., & Sandberg, J. (2011). Generating research questions through problematization. Academy of Management Review, 36(2), 247-271. Doi:10.5465/AMR.2011.59330882. https://doi.org/10.5465/amr.2009.0188
- Arrowsmith, S. (2010). Horizontal policies in public procurement: A taxonomy. Journal of Public Procurement, 10(2), 149-186. https://doi.org/10.1108/JOPP-10-02-2010-B001
- Auditor-General's Report (2011, June 30). Auditor-General's Report on the Public Accounts of Ghana (Consolidated Fund) for the year ended 31st December 2010.
- Basheka, B. C. (2011). Economic and political determinants of public procurement corruption in developing countries: An empirical study from Uganda. Journal of Public Procurement, 11(1), 33-60. https://doi.org/10.1108/JOPP-11-01-2011-B002
- Basheka, B. C., & Mugabira, M. I. (2008, August). Measuring Professionalism variables and their implication to procurement outcomes in Uganda. In The 3rd International Public Procurement Conference Proceedings (pp. 28-30). https://nru.uncst.go.ug/xmlui/handle/123456789/2046
- Boateng, C. (2013, September 04). CHRAJ concludes preliminary investigations into SADA projects. Daily Graphic. https://www.modernghana.com/news/487220/chraj-concludes-preliminary-investigations-into-sada-project.html
- Bokpe, S.J. (2014, January 24). Project to promote transparency in public procurement unveiled. Daily Graphic.
- Bozec, R. & Dia, M. (2012) Convergence of corporate governance practices in the post‐Enron period: Behavioral transformation or box‐checking exercise? Corporate Governance: The International Journal of Business in Society, 12(2), pp.243-256. https://doi.org/10.1108/14720701211214115
- Brandon-Jones, A., & Carey, S. (2011). The impact of user-perceived e-procurement quality on system and contract compliance. International Journal of Operations & Production Management, 31(3), 274-296. https://doi.org/10.1108/01443571111111928
- Brewer, E., & Headlee, N. (2010). Proposal. In N. Salkind (Ed.), Encyclopedia of research design. (pp. 1122-1131). Sage.
- Canni, T. J. (2010). Debarment is no longer private World Bank business: An examination of the bank's distinct debarment procedures used for corporate procurements and financed projects. Public Contract Law Journal, 40(1), 147–169. http://www.jstor.org/stable/25755804
- Creswell, J. W. (2009). Research design: Qualitative, quantitative, and mixed methods approaches (3rd ed.). Sage.
- Diggs, S. N., & Roman, A. V. (2012). Understanding and tracing accountability in the public procurement process. Public Performance & Management Review, 36(2), 290-315. Doi: 10.2753/PMR1530-9576360207
- Eisenhardt, K. (1989). Agency theory: An assessment and review. Academy of Management Review, 14(1), 57-74. https://doi.org/10.5465/amr.1989.4279003
- Etse, D., & Asenso-Boakye, M. (2014). Challenges of public procurement audit a perspective of Ashanti regional office of Ghana audit service. International Journal of Economics, Commerce, and Management, 2(3), 1-12. http://dx.doi.org/10.2139/ssrn.2429251
- Eyaa, S., & Oluka, P. (2011). Explaining non-compliance in public procurement in Uganda. International Journal of Business & Social Science, 2(11), 35-44.
- Gelderman, J. C., Ghijsen, W. P., & Brugman, J. M. (2006). Public procurement and EU tendering directives explaining non-compliance. International Journal of Public Sector Management, 19(7), 702-714. https://doi.org/10.1108/09513550610704716
- Gordon, S. B., & Zemansky, S. D. (2000). The public purchasing profession revisited. Journal of Public Budgeting, Accounting & Financial Management, 12(2), 248.
- https://doi.org/10.1108/JPBAFM-12-02-2000-B004
- Hawkins, T., Gravier, M., & Powley, E. (2011). Public versus private sector procurement ethics and strategy: What each sector can learn from the other. Journal of Business Ethics, 103(4), 567-586. https://doi.org/10.1007/s10551-011-0881-2
- Hui, W., Othman, R., Omar, N., Rahman, R., & Haron, N. (2011). Procurement issues in Malaysia. International Journal of Public Sector Management, 24(6), 567-593. https://doi.org/10.1108/09513551111163666
- Jaafar, M. R., Ramali, N. M., & Aziz, S. A. (2015). Compliance with government procurement policy in Malaysia. INSAN. https://discinternational.org/assignment_upload/2016Mar22-11-INSAN-2015-Journal-03.2016.pdf
- 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. Retrieved from https://archive.aessweb.com/index.php/5006/article/view/4135
- Kidalov, M. V., & Snider, K. F. (2011). US and European public procurement policies for small and medium-sized enterprises (SME): A comparative perspective. Business & Politics, 13(4), 1-43. https://doi.org/10.2202/1469-3569.1367
- Kovacic, W. E. (1998). Law, Economics, and the Reinvention of Public Administration: Using Relational Agreements to Reduce the Cost of Procurement Regulation and Other Forms of Government Intervention in the Economy. Admin. L. Rev., 50, 141.
- Kulbiski, N. (2012). Another perspective on too big to debar BP: The Environmental Protection Agency, and the World Bank. Public Contract Law Journal, 41(4), 967-984. http://www.jstor.org/stable/41635365
- Lazarides, T. (2011). Corporate governance legal and regulatory framework's effectiveness in Greece: A response. Journal of Financial Regulation and Compliance, 19(3), 244-253. https://doi.org/10.1108/13581981111147874
- Lewis, R. & Maude, A. (1953). Professional People in England. Harvard University Press.
- Mares, R. (2012). Corporate Responsibility and Compliance with the Law: A Case Study of Land, Dispossession, and Aftermath at Newmont's Ahafo Project in Ghana. Business & Society Review. Vol. 117 Issue 2, p233-280. https://doi.org/10.1111/j.1467-8594.2011.00400.x
- Meltzoff, J. (2001). Critical thinking about research: Psychology and related fields. Washington. DC: American Psychological Association.
- Merriam-Webster. (n.d.). Methodology. In Merriam-Webster.com dictionary. Retrieved December 6, 2022, from https://www.merriam-webster.com/dictionary/methodology
- Millerson, G. (1964). The Qualifying Associations. Routledge and Kegan Paul.
- Murry, J. P., & Heide, J. B. (1998). Managing promotion program participation within manufacturer-retailer relationships. Journal of Marketing, 62(1): 58-68. https://doi.org/10.1177/002224299806200106
- Mwakibinga, F. A., & Buvik, A. (2013). An empirical analysis of coercive means of enforcing compliance in public procurement. Journal of Public Procurement, 13(2), 243-273. https://doi.org/10.1108/JOPP-13-02-2013-B004
- Ntayi, J., Ngoboka, P., & Kakooza, C. (2013). Moral schemas and corruption in Ugandan public procurement. Journal of Business Ethics, 112(3), 417-436. https://doi.org/10.1007/s10551-012-1269-7
- Ocloo, D.R. (2011, December 30). Govt. pays GHc642m in judgment debt. Daily Graphic.
- Onyinkwa, J. (2013). Factors influencing compliance to procurement regulations in public secondary schools in Kenya: A case of Nyamache District, Kisii County. Interdisciplinary Journal of Contemporary Research in Business, 5(1), 561-592.
- Oruezabala, G., & Rico, J. (2012). The impact of sustainable public procurement on supplier management — The case of French public hospitals. Industrial Marketing Management, 41(4), 573-580. https://doi.org/10.1016/j.indmarman.2012.04.004
- Osei-Tutu, E., Mensah, S., & Ameyaw, C. (2011). The level of compliance with the Public Procurement Act (act 663) in Ghana. Management and Innovation for a Sustainable Built Environment. ISBN:
- Rokkan, A. I., & Buvik, A. (2003). Inter-firm cooperation and the problem of free riding behavior: An empirical study of voluntary retail chains. Journal of Purchasing and Supply Management, 9(5), 247-256. https://doi.org/10.1016/j.pursup.2003.09.004
- Rossi, C. L. (2010). Compliance: An over-looked business strategy. International Journal of Social Economics, 37(10), 816-831. https://doi.org/10.1108/03068291011070471
- Salia, A. K. (2012, August 18). Mounting judgment debt - Auditor-General calls for sanctions against those responsible. Daily Graphic.
- Scott, W. R. (2004). Institutional Theory. Encyclopedia Theory, Thousand Oak: CA.
- Shore, N. (2006). Re-conceptualizing the Belmont Report: A community-based participatory research perspective. Journal of Community Practice, 14(4), 5-26. https://doi.org/10.1300/J125v14n04_02
- Snider, K.F. (2006). Procurement leadership: from means to ends. Journal of Public Procurement, 6(3), 274-294. https://doi.org/10.1108/JOPP-06-03-2006-B004
- Soudry, O. (2007). A principal-agent analysis of accountability in public procurement. In Piga, P. & Thai, K.V. (Eds.), Advancing Public Procurement: Practices, Innovation, and Knowledge-sharing. (pp. 432-451). Boca Raton, FL: PR Academics Press.
- Sutinen, J. G., & Kuperan, K. K. (1999). A socioeconomic regulatory compliance. International Journal of Social Economics, 26(1-3), 174-193. https://doi.org/10.1108/03068299910229569
- Thai, K. (2001). Public procurement reexamined. Journal of Public Procurement 1 (1): 9–50. https://doi.org/10.1108/JOPP-01-01-2001-B001
- Tukamuhabwa, B. R. (2012). Antecedents and consequences of public procurement non-compliance behavior. Journal of Economics & Behavioral Studies, 4(1), 34-46. https://doi.org/10.22610/jebs.v4i1.300
- Walker, W. (2005). The strengths and weaknesses of research designs involving quantitative measures. Journal of Research in Nursing, 10(5), 571. https://doi.org/10.1177/136140960501000505
- Weigel, Y. (2013). Is "Protection" Always in the Best Interests of the Government: An Argument to Narrow the Scope of Suspension and Debarment? George Washington Law Review, 81(2), 627. http://www.gwlr.org/wp-content/uploads/2018/04/81-Geo.-Wash.-L.-Rev.-627.pdf
- Wilmshurst, T. & Frost, G. (2000). Corporate environmental reporting: a test of legitimacy theory. Accounting, Auditing, and Accountability Journal, 13(1), 10-26. https://doi.org/10.1108/09513570010316126
- Yukins, C. R. (2013). Rethinking the World Bank's Sanctions System. 55 The Government Contractor, No. 42, 355. https://scholarship.law.gwu.edu/faculty_publications/1035/
References
Act 663, (2003). Ghana Public procurement law (Act 663).
Act 914, (2016). Ghana Public procurement law (Amendment Act 914, 2016).
Adam, F., Csaki, C., Prier, E., Bufacchi, V. (2012). Ethical decision making and decision support systems in public procurement – A theoretical discussion. Supply Chain Forum an International Journal, 13(2), 70-81. https://doi.org/10.1080/16258312.2012.11517299
Adjei, A. B. (2016, May 17). Sole sourcing is an exception: It cannot be elevated to become the norm – Expert. Retrieved from http://www.myjoyonline.com/news/2016/May-17th/sole-sourcing-is-an-exception-it-cannot-be-elevated-to-become-the-norm-expert.php
Adu-Gyamerah, E. (2013, December 14). SADA operations dominate parliamentary debate. Daily Graphic. https://www.modernghana.com/news/508424/sada-operations-dominate-parliamentary-debate.html
Ahimbisibwe, A., Muhwezi, M., & Nangoli, S. (2012). Outsourced contracts, buyer-supplier trust, supplier opportunistic behavior and supplier performance in Ugandan public procuring and disposing entities (PDEs). Journal of Public Procurement, 12(4), 435-470. https://doi.org/10.1108/JOPP-12-04-2012-B001
Alvesson, M., & Sandberg, J. (2011). Generating research questions through problematization. Academy of Management Review, 36(2), 247-271. Doi:10.5465/AMR.2011.59330882. https://doi.org/10.5465/amr.2009.0188
Arrowsmith, S. (2010). Horizontal policies in public procurement: A taxonomy. Journal of Public Procurement, 10(2), 149-186. https://doi.org/10.1108/JOPP-10-02-2010-B001
Auditor-General's Report (2011, June 30). Auditor-General's Report on the Public Accounts of Ghana (Consolidated Fund) for the year ended 31st December 2010.
Basheka, B. C. (2011). Economic and political determinants of public procurement corruption in developing countries: An empirical study from Uganda. Journal of Public Procurement, 11(1), 33-60. https://doi.org/10.1108/JOPP-11-01-2011-B002
Basheka, B. C., & Mugabira, M. I. (2008, August). Measuring Professionalism variables and their implication to procurement outcomes in Uganda. In The 3rd International Public Procurement Conference Proceedings (pp. 28-30). https://nru.uncst.go.ug/xmlui/handle/123456789/2046
Boateng, C. (2013, September 04). CHRAJ concludes preliminary investigations into SADA projects. Daily Graphic. https://www.modernghana.com/news/487220/chraj-concludes-preliminary-investigations-into-sada-project.html
Bokpe, S.J. (2014, January 24). Project to promote transparency in public procurement unveiled. Daily Graphic.
Bozec, R. & Dia, M. (2012) Convergence of corporate governance practices in the post‐Enron period: Behavioral transformation or box‐checking exercise? Corporate Governance: The International Journal of Business in Society, 12(2), pp.243-256. https://doi.org/10.1108/14720701211214115
Brandon-Jones, A., & Carey, S. (2011). The impact of user-perceived e-procurement quality on system and contract compliance. International Journal of Operations & Production Management, 31(3), 274-296. https://doi.org/10.1108/01443571111111928
Brewer, E., & Headlee, N. (2010). Proposal. In N. Salkind (Ed.), Encyclopedia of research design. (pp. 1122-1131). Sage.
Canni, T. J. (2010). Debarment is no longer private World Bank business: An examination of the bank's distinct debarment procedures used for corporate procurements and financed projects. Public Contract Law Journal, 40(1), 147–169. http://www.jstor.org/stable/25755804
Creswell, J. W. (2009). Research design: Qualitative, quantitative, and mixed methods approaches (3rd ed.). Sage.
Diggs, S. N., & Roman, A. V. (2012). Understanding and tracing accountability in the public procurement process. Public Performance & Management Review, 36(2), 290-315. Doi: 10.2753/PMR1530-9576360207
Eisenhardt, K. (1989). Agency theory: An assessment and review. Academy of Management Review, 14(1), 57-74. https://doi.org/10.5465/amr.1989.4279003
Etse, D., & Asenso-Boakye, M. (2014). Challenges of public procurement audit a perspective of Ashanti regional office of Ghana audit service. International Journal of Economics, Commerce, and Management, 2(3), 1-12. http://dx.doi.org/10.2139/ssrn.2429251
Eyaa, S., & Oluka, P. (2011). Explaining non-compliance in public procurement in Uganda. International Journal of Business & Social Science, 2(11), 35-44.
Gelderman, J. C., Ghijsen, W. P., & Brugman, J. M. (2006). Public procurement and EU tendering directives explaining non-compliance. International Journal of Public Sector Management, 19(7), 702-714. https://doi.org/10.1108/09513550610704716
Gordon, S. B., & Zemansky, S. D. (2000). The public purchasing profession revisited. Journal of Public Budgeting, Accounting & Financial Management, 12(2), 248.
https://doi.org/10.1108/JPBAFM-12-02-2000-B004
Hawkins, T., Gravier, M., & Powley, E. (2011). Public versus private sector procurement ethics and strategy: What each sector can learn from the other. Journal of Business Ethics, 103(4), 567-586. https://doi.org/10.1007/s10551-011-0881-2
Hui, W., Othman, R., Omar, N., Rahman, R., & Haron, N. (2011). Procurement issues in Malaysia. International Journal of Public Sector Management, 24(6), 567-593. https://doi.org/10.1108/09513551111163666
Jaafar, M. R., Ramali, N. M., & Aziz, S. A. (2015). Compliance with government procurement policy in Malaysia. INSAN. https://discinternational.org/assignment_upload/2016Mar22-11-INSAN-2015-Journal-03.2016.pdf
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. Retrieved from https://archive.aessweb.com/index.php/5006/article/view/4135
Kidalov, M. V., & Snider, K. F. (2011). US and European public procurement policies for small and medium-sized enterprises (SME): A comparative perspective. Business & Politics, 13(4), 1-43. https://doi.org/10.2202/1469-3569.1367
Kovacic, W. E. (1998). Law, Economics, and the Reinvention of Public Administration: Using Relational Agreements to Reduce the Cost of Procurement Regulation and Other Forms of Government Intervention in the Economy. Admin. L. Rev., 50, 141.
Kulbiski, N. (2012). Another perspective on too big to debar BP: The Environmental Protection Agency, and the World Bank. Public Contract Law Journal, 41(4), 967-984. http://www.jstor.org/stable/41635365
Lazarides, T. (2011). Corporate governance legal and regulatory framework's effectiveness in Greece: A response. Journal of Financial Regulation and Compliance, 19(3), 244-253. https://doi.org/10.1108/13581981111147874
Lewis, R. & Maude, A. (1953). Professional People in England. Harvard University Press.
Mares, R. (2012). Corporate Responsibility and Compliance with the Law: A Case Study of Land, Dispossession, and Aftermath at Newmont's Ahafo Project in Ghana. Business & Society Review. Vol. 117 Issue 2, p233-280. https://doi.org/10.1111/j.1467-8594.2011.00400.x
Meltzoff, J. (2001). Critical thinking about research: Psychology and related fields. Washington. DC: American Psychological Association.
Merriam-Webster. (n.d.). Methodology. In Merriam-Webster.com dictionary. Retrieved December 6, 2022, from https://www.merriam-webster.com/dictionary/methodology
Millerson, G. (1964). The Qualifying Associations. Routledge and Kegan Paul.
Murry, J. P., & Heide, J. B. (1998). Managing promotion program participation within manufacturer-retailer relationships. Journal of Marketing, 62(1): 58-68. https://doi.org/10.1177/002224299806200106
Mwakibinga, F. A., & Buvik, A. (2013). An empirical analysis of coercive means of enforcing compliance in public procurement. Journal of Public Procurement, 13(2), 243-273. https://doi.org/10.1108/JOPP-13-02-2013-B004
Ntayi, J., Ngoboka, P., & Kakooza, C. (2013). Moral schemas and corruption in Ugandan public procurement. Journal of Business Ethics, 112(3), 417-436. https://doi.org/10.1007/s10551-012-1269-7
Ocloo, D.R. (2011, December 30). Govt. pays GHc642m in judgment debt. Daily Graphic.
Onyinkwa, J. (2013). Factors influencing compliance to procurement regulations in public secondary schools in Kenya: A case of Nyamache District, Kisii County. Interdisciplinary Journal of Contemporary Research in Business, 5(1), 561-592.
Oruezabala, G., & Rico, J. (2012). The impact of sustainable public procurement on supplier management — The case of French public hospitals. Industrial Marketing Management, 41(4), 573-580. https://doi.org/10.1016/j.indmarman.2012.04.004
Osei-Tutu, E., Mensah, S., & Ameyaw, C. (2011). The level of compliance with the Public Procurement Act (act 663) in Ghana. Management and Innovation for a Sustainable Built Environment. ISBN:
Rokkan, A. I., & Buvik, A. (2003). Inter-firm cooperation and the problem of free riding behavior: An empirical study of voluntary retail chains. Journal of Purchasing and Supply Management, 9(5), 247-256. https://doi.org/10.1016/j.pursup.2003.09.004
Rossi, C. L. (2010). Compliance: An over-looked business strategy. International Journal of Social Economics, 37(10), 816-831. https://doi.org/10.1108/03068291011070471
Salia, A. K. (2012, August 18). Mounting judgment debt - Auditor-General calls for sanctions against those responsible. Daily Graphic.
Scott, W. R. (2004). Institutional Theory. Encyclopedia Theory, Thousand Oak: CA.
Shore, N. (2006). Re-conceptualizing the Belmont Report: A community-based participatory research perspective. Journal of Community Practice, 14(4), 5-26. https://doi.org/10.1300/J125v14n04_02
Snider, K.F. (2006). Procurement leadership: from means to ends. Journal of Public Procurement, 6(3), 274-294. https://doi.org/10.1108/JOPP-06-03-2006-B004
Soudry, O. (2007). A principal-agent analysis of accountability in public procurement. In Piga, P. & Thai, K.V. (Eds.), Advancing Public Procurement: Practices, Innovation, and Knowledge-sharing. (pp. 432-451). Boca Raton, FL: PR Academics Press.
Sutinen, J. G., & Kuperan, K. K. (1999). A socioeconomic regulatory compliance. International Journal of Social Economics, 26(1-3), 174-193. https://doi.org/10.1108/03068299910229569
Thai, K. (2001). Public procurement reexamined. Journal of Public Procurement 1 (1): 9–50. https://doi.org/10.1108/JOPP-01-01-2001-B001
Tukamuhabwa, B. R. (2012). Antecedents and consequences of public procurement non-compliance behavior. Journal of Economics & Behavioral Studies, 4(1), 34-46. https://doi.org/10.22610/jebs.v4i1.300
Walker, W. (2005). The strengths and weaknesses of research designs involving quantitative measures. Journal of Research in Nursing, 10(5), 571. https://doi.org/10.1177/136140960501000505
Weigel, Y. (2013). Is "Protection" Always in the Best Interests of the Government: An Argument to Narrow the Scope of Suspension and Debarment? George Washington Law Review, 81(2), 627. http://www.gwlr.org/wp-content/uploads/2018/04/81-Geo.-Wash.-L.-Rev.-627.pdf
Wilmshurst, T. & Frost, G. (2000). Corporate environmental reporting: a test of legitimacy theory. Accounting, Auditing, and Accountability Journal, 13(1), 10-26. https://doi.org/10.1108/09513570010316126
Yukins, C. R. (2013). Rethinking the World Bank's Sanctions System. 55 The Government Contractor, No. 42, 355. https://scholarship.law.gwu.edu/faculty_publications/1035/