Unleashing SME Participation in Public Procurement Markets Through Training and Mentorship Programmes: A Procedural Capabilities Mediation Model

Training and mentorship programmes have emerged as strategic capacity-building interventions that small and medium-sized enterprises (SMEs) can leverage to overcome structural barriers and enhance procedural capabilities for participation in public procurement markets. This study examines how procedural capabilities translate the potential of training and mentorship programmes towards improved participation of SMEs in public procurement markets using the theoretical lens of the dynamic capability view (DCV). A quantitative cross-sectional research design was adopted, targeting 283 SMEs in Tanzania. Data were collected using a structured questionnaire and analysed using Hayes PROCESS macro to test the proposed model hypotheses. The study results revealed a significant positive effect of training and mentorship programmes on the procedural capabilities of SMEs and their engagement in public procurement markets. Further, procedural capabilities showed a significant positive association with SME participation in public procurement markets. A notable finding of this study is that procedural capabilities serve as a mediating mechanism through which training and mentorship programmes enhance SME participation in public procurement markets. Subsequently, the study suggests designing capacity-building interventions that extend beyond generic training and mentorship towards targeted skills development initiatives that build procurement-specific capabilities. The novelty of this study lies in its specific focus on SME suppliers and the mediating effect of procedural capabilities on the relationship between training and mentorship programmes and SME participation in public procurement markets within the framework of DCV in the context of Tanzania. The study findings are relevant for policymakers, oversight authorities and support organisations seeking ways to enhance strategies and promote inclusive participation of SMEs in public procurement markets.