The Influence of Dispute Resolution Mechanism on Managing Procurement Contract in Tanzania: A Case of CRDB Bank Plc

The banking sector is a critical component of any modern economy, and procurement contracts are essential for the smooth operation of banking institutions. However, disputes can arise during the execution of these contracts, which can result in significant delays, increased costs, and reputational damage. This study examined the influence of dispute resolution mechanisms in managing procurement contract in Tanzania: a case of CRDB Bank Plc. The study was guided by theory of dispute resolution while the study was conducted using descriptive research design, quantitative approach, sample size of study was 148, and data collection methods were questionnaire and documentary review. Data analysis methods were descriptive statistics and inferential statistics. The regression analysis demonstrated the significant influence of all three dispute resolution mechanisms on the management of procurement contracts. The negotiation mechanism, particularly the positive, empowering, and encouraging aspects, had the strongest impact, followed by the mediation mechanism. Regression analysis shows that these mechanisms collectively explain 82.4% of the variance in procurement contract management outcomes, underscoring their critical role. The study recommends that the bank sector should enhance legal frameworks, invest in training programs, and establish specialized ADR centers to improve dispute resolution in procurement.