Abstract:
The public procurement governance crisis in developing
countries is typically triggered by unclear transparency and accountability,
inadequate competitiveness procedures and weak legal frameworks. To
address these challenges, unlikely other studies, we critically analyzed the
effects’ sizes and permutation tests to uncover unobserved heterogeneity.
The motives behind this paper are to ascertain the unobserved
heterogeneity in public procurement governance and to identify existence
classes with homogeneous behavior patterns. REBUS-PLS was used to
measure and assess the unobserved heterogeneity. In that premises, the
paper critically assessed the measurement and structural models and
explicitly analyzed the goodness of fit (GoF) index, group quality index
(GQI), effects' sizes and permutation tests. The six tested hypotheses were
significant at the global model after accustoms the bootstrap. By contrast,
the local models show better performance compared to the global model.
The paper contributes by providing original empirical findings to the main
streams of the public procurement governance with REBUS-PLS which is
not a common approach. The study concludes that significant unobserved
heterogeneity existed regarding transparency, accountability, competition,
legal frameworks and value for money from a viewpoint of local
government in Tanzania.
