From consortium tendering to SMEs’ participation in publicprocurement markets: do procedural capabilities intervene?

Abstract

This study examines the effect of consortium tendering (cst) on the participation ofsMe in public procurement markets (ppM) with a particular focus on the mediating roleof procedural capabilities (prc). Data collection was done using a structuredcross-sectional questionnaire survey that was randomly distributed to 283 sMes withinthe context of tanzania. the proposed model hypotheses were tested using hayesprOcess macro. the study results showed a significant positive effect of cst on sMe’sprc and their engagement in ppM. Further, prc revealed a significant positive effect onsMe participation in ppM. the notable finding of the study is that prc serve as amechanism through which cst influences sMe participation in ppM. accordingly, thestudy suggests designing digital platforms that can connect sMes with large companiesand their peers, offer specific training and mentorship programmes on the aspect ofcst and the procedural nature of ppM. the study makes a novel contribution toliterature on public procurement and competitiveness by integrating insights of cstand prc to explain sMes’ involvement in ppM. the study findings hold relevance forpolicymakers, oversight authorities and support institutions seeking ways to enhancestrategies towards inclusive participation of sMes in ppM.