Compliance to acts, rules and regulations: Evidence from sub-saharan africa
| Pages | 374-405 |
| Published date | 01 March 2016 |
| DOI | https://doi.org/10.1108/JOPP-16-03-2016-B006 |
| Date | 01 March 2016 |
| Author | Musa Mbago,Joseph M. Ntayi,Moses Muhwezi |
| Subject Matter | Public policy & environmental management,Politics,Public adminstration & management,Government,Economics,Public Finance/economics,Texation/public revenue |
JOURNAL OF PUBLIC PROCUREMENT, VOLUME 16, ISSUE 3, 374-405 FALL 2016
COMPLIANCE TO ACTS, RULES AND REGULATIONS:
EVIDENCE FROM SUB-SAHARAN AFRICA
Musa Mbago, Joseph M. Ntayi and Moses Muhwezi*
ABSTRACT. The purpose of the study is to develop and test an integrated
compliance model using constructs derived from the legitimacy, deterrence,
institutional and stewardship theories. A Cross-sectional survey design was
used to collect data from a sample of 9 7 out of the population of 129
Procuring and Disposing Entities which are regulated by the Public
Procurement and Disposal of Assets Authority Act ( PPDA). Measurement
items were derived from a critical review of literature and found to be both
valid and reliable with Cronbach Alpha coefficient of 0.7 . The findings reveal
that legitimacy and stewardship behavior are significant predictors of
compliance to the PPDA Act, Rules and Regulati ons. We therefore
recommend that Procuring and Disposing Entities should continue
legitimizing the procurement law through involvement of all stak eholders
and promote stewardship behaviors among public employees.
INTRODUCTION
In the effort to benefit from the Agreements, Acts, rules and
regulations associated with public procurement, compliance is being
emphasized by procurement regulators worldwide. This is because
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* Musa Mbago, MA, Joseph M. Ntayi, Ph.D., and Moses Muhwezi, Ph.D., are
a Lecturer, a Professor, and the Deputy Principal, respectively, Business
School, Makerere University, Uganda. Mbago’s teaching and research interests
are in the areas of public procurement, supply chain management,
procurement ethics and logistics management. Dr. Ntayi’s teaching and
research interests are in procurement, supply chain management, logistics,
transport management, social performance management, microfinance
governance, project scope management, project risk ma nagement,
Institutional framing and schemas, s ocial insurance and social inclusion,
pension management, wealth management, SACCOs, public administration
and public policy. Dr. Muhwezi’s teaching and research interests are in
procurement, project management and public administration.
Copyright © 2016 by Pracademics Press
COMPLIANCE TO ACTS, RULES AND REGULATIONS: EVIDENCE FROM SUB-SAHARAN AFRICA 375
non-compliance has devastating implications on the economy
implementing procurement reforms. Ntayi, Ngoboka, Mutebi and
Sitenda (2012) and Agaba and Shipman (2008) argue that the
Ugandan Procuring and Disposing Entities (PDEs) in Uganda
experience low levels of compliance with the “Public Procurement
and Disposal of Assets Authority (PPDA) Act and Regulations.” This is
corroborated by the “Common Wealth Heads of Government Meeting
(CHOGM) Report” (2010), the “Global Integrity Survey Report on
Uganda” (2008); the Public Procurement and Disposal of Public
Assets Authority (PPDA) “Capacity Building Strategy Report”
(2011/2014), “Public Procurement and Disposal Authority Baseline
Survey Report” (2010), “Public Procurement and Disposal of Assets
Authority Audit Reports” from 2005 up to 2015, the “Public
Procurement Performance Measurement System (PPMS) Report”
(2013) as well as the 2010 and 2012 legal and compliance reports.
These reports confirm the presence of noncompliance by the PDEs in
implementing the procurement structures, procurement planning,
contract placement and award, solicitation and bidding procedures,
evaluation process, contract placement reporting, performance of
contracts committee and record keeping.
Some studies have been conducted on regulatory compliance in
sub-Saharan Africa. These studies reveal that individual’s social
relations, group think, expected utility, perceptions of procedural
justice and legitimacy of the public law (Ntayi et al., 2012), media
publicity, organizational culture, political interference, moral
obligation (Tukamuhabwa, 2012), familiarity with the procurement
regulations (Eyaa and Oluka, 2011) are significant predictors of
public procurement regulatory compliance. However, these studies
have concentrated on the sociological, organizational behaviour,
anthropological, political and legal factors largely ignoring the,
stewardship behavior, deterrence and whistle blowing behavior
thereby creating a knowledge gap which needs to be filled. Therefore,
the study uses a multi-theoretical approach to predict compliance. We
specifically test the Legitimacy theory, Deterrence theory,
Stewardship theory and Institutional theory. Legitimacy is “a
generalized perception or assumption that the actions of an entity are
desirable, proper, or appropriate within some socially constructed
system of norms, values, beliefs, and definitions” (Suchman, 1995, p.
574). Extensive literature reveals that “the claim that legitimacy is the
driving force behind compliance is an assertion, rather than the result
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