An Effective Public Procurement Model for Construction Small, Medium and Micro Enterprises in South Africa.

Abstract

Public procurement plays a vital role in the economy and public expenditure of any country and serves as an indicator of the effectiveness of a government. Despite the several reforms made to the South African public procurement system and application of supply chain management as a strategic policy strategic instrument, the South African public procurement system has still been strongly criticised for not encouraging the participation of small and medium enterprises. Therefore, this study aims to develop an effective public procurement model for small, medium, and micro enterprises in South Africa. The study further explores the relationship between competitiveness, openness, accountability, transparency, and value for money on effective public procurement. A quantitative method consisting of a questionnaire survey was adopted. A stratified sampling technique was used to select 250 participants for the study. A closed-ended questionnaire was used to collect data from the respondents. The Statistical Package for Social Sciences, version 27.0, and Analysis of Moment Structures, version 26.0, were used to analyse the data. The results showed that openness, accountability, transparency, and value for money influenced public procurement. Competitiveness, as a factor, however, had no effect on public procurement. The findings revealed that effective public procurement is a four-factor model. The final model revealed that openness, value for money, accountability, and transparency are significant with effective public procurement. Therefore, the identified constructs have a significant direct influence and are determinants of effective public procurement. Also, the goodness of fit and statistical significance of the parameter estimates met the cut-off criteria for the hypothesized model. This study is unique as it contributes to expanding the body of knowledge on the publicprocurement system in South Africa. An important implication of this study is that it contributes to enhancing efficiency in the South African public-procurement system. This study could be used as a tool to encourage the participation of small, medium, and micro enterprises in public procurement. In addition, the value of this study is that it provides mechanisms through which the South African public-procurement system can be improved to eliminate corruption, maladministration, and irregularities. Based on the findings, the recommendation is that the public procurement process comply with procurement regulations to encourage the participation of small, medium, and micro enterprises.

ISIZULU: Lolu cwaningo lwakha imodeli yokuthengwa kwempahla yomphakathi esebenzayo yokwakha ama-SMME eNingizimu Afrika. Ucwaningo luqhubeka nokuhlola ubudlelwano phakathi kokuncintisana, ukuvuleleka, ukubophezeleka, ukwenza izinto obala kanye nokuthola imali ekuthengeni komphakathi okusebenzayo. Indlela yokulinganisa, equkethe inhlolovo yemibuzo yamukelwa. Indlela esetshenzisiwe yokwenza isampula isetshenziselwe ukukhetha ababambiqhaza abangama-250 ocwaningweni. Kusetshenziswe uhlu lwemibuzo osekuphele isikhathi ukuqoqa imininingwane kubaphenduli. Isoftware ye-IBM SPSS, inguqulo 27.0, ne-AMOS, inguqulo 26.0, isetshenziselwe ukuhlaziya imininingwane. Ukuhlaziywa nokuchazwa kwedatha kwenziwe ngokusebenzisa izibalo ezichazayo. Imiphumela yalolu cwaningo ibihambisana nokutholakele ocwaningweni oluningi, ngaphandle kwethonya eliqondile lokuncintisana ekuthengweni kwempahla okusebenzayo yomphakathi akuzange kusekelwe kusampula ocwaningweni. Okutholakele kuveze ukuthi ukuthengwa komphakathi okusebenzayo kuyisibonelo sezici ezine. Imodeli yokugcina iveze ukuthi ukuvuleleka, inani lemali, ukubophezeleka kanye nokwenza izinto obala kubalulekile ekuthengeni komphakathi okusebenzayo. Ukuncintisana kutholakale kungabalulekile. Ngakho-ke, ukwakhiwa okukhonjiwe kunomthelela oqondile oqondile futhi kungukunquma kokuthengwa komphakathi okusebenzayo. Futhi, ubuhle bokubaluleka okufanelekile nezibalo zesilinganiso sepharamitha kuhlangabezane nenqubo yokusika yemodeli ye-hypothesised.