Achieving desired compliance performance in public procurement: Does embedding a culture of performance orientation matter?

Abstract Despite the efforts made by governments to restructure public procurement, there continues to be an increase in regulatory noncompliance. In this study, we explore whether embedding a performance orientation culture in public officials involved in public procurement helps to achieve satisfactory compliance performance. Thus, by analyzing data from Tanzania’s public procurement supply chain using PLS-SEM, the findings reveal a positive and significant relationship between performance orientation and regulatory compliance performance. Additionally, the results show that the relationship is significantly mediated by familiarity with the procurement rules and professionalism. Importantly, the direct effect of performance orientation becomes insignificant in the presence of the two mediators, indicating that the relationship exhibits an indirect-only mediation relationship. Furthermore, utilizing necessary condition analysis (NCA), the results indicate that in order for procuring entities to achieve a compliance level of at least 70%, it is necessary to instil performance orientation within the procurement workforce. Lastly, the study stresses the importance of informal institutional influences, including the culture of performance orientation.