The Effect of Procurement Practices On Service Delivery: A Case Study of VRA, Ghana

Asian Journal of Economics, Business and Accounting
13(1): 1-23, 2019; Article no.AJEBA.53090

ISSN: 2456-639X
The Effect of Procurement Practices on Service

Delivery: A Case Study of VRA, Ghana
Augustine Anane1*, Victor Adoma2 and Gabriel Awuah1
1
Department of Procurement, Sunyani Technical University, P.O.Box 206, Sunyani, Bono Region,
Ghana.
2
Department of Communication Studies, Sunyani Technical University, P.O.Box 206, Sunyani,
Bono Region, Ghana.
Authors’ contributions
This work was carried out in collaboration among all authors. Author AA designed the study,
performed the statistical analysis and wrote the protocol as well as the first draft of the manuscript.
Authors AA and VA managed the analyses of the study. Author GA managed the literature search.
All authors read and approved the final manuscript.
Article Information
DOI: 10.9734/AJEBA/2019/v13i130163
Editor(s):
(1) Dr. Fang Xiang, Visiting Professor, International Business School, University of International and Business Economics,
China.
Reviewers:
(1) Javier Mendoza Jiménez, Universidad de La Laguna, Spain.
(2) Pedro Miguel Alves Ribeiro Correia, University of Lisbon, Portugal.
(3) Papadakis Stamatios, University of Crete, Greece.
Complete Peer review History: http://www.sdiarticle4.com/review-history/53090
Received 28 September 2019

Accepted 03 December 2019
Original Research Article
Published 10 December 2019
ABSTRACT
This study was conducted to determine the effect of procurement policy, procurement planning and
sustainable procurement on service delivery. The study employed a quantitative research approach
and explanatory design. The target population for the study was staff and management of the Volta
River Authority. Structured questionnaire was used to gather primary data. The study used SPSS
version 32.0 for the data analyses. The study found that 73.6% variations in service delivery were
explained by Procurement Policy, Procurement Planning and Sustainable Procurement. The study
found that Procurement Policy (β = 0.623 ρ=0.000< 0.05) are significant determinants of service
delivery thus a unit change in procurement policy will result in 62.3% change in service delivery.
Procurement Planning (β = 0.027, ρ=0.080< 0.05) are significant determinants of service delivery
thus a unit change in procurement planning will result in 2.7% change in service delivery.
Sustainable Procurement (β = 0.39 ρ=0.000 < 0.05) are a significant determinant of service delivery.
_____________________________________________________________________________________________________
*Corresponding author: E-mail: prof.anane@gmail.com;

Anane et al.; AJEBA, 13(1): 1-23, 2019; Article no.AJEBA.53090
Thus a unit change in Sustainable Procurement will result in 39% change in service delivery. From
the model estimation, procurement policy was the strongest predictor of service delivery followed by
sustainable procurement and lastly procurement planning. The study revealed a strong significant
positive correlation between procurement policy and service delivery. Moreover, the result showed
a strong significant positive correlation between procurement planning and service delivery. Again
the study found a significant positive correlation between sustainable procurement and service
delivery. The study concludes that Procurement Policy, Procurement Planning and Sustainable
Procurement significantly predict service delivery of VRA. The study recommends that the
management of VRA must continuously invest in sustainable procurement, procurement planning
and procurement policy to enhance service delivery to the public.
Keywords: Procurement practices; procurement planning; procurement policy; sustainable

procurement.
1. INTRODUCTION Consequently, this research work has identified a

limited gap in existing empirical literature as it
Public sector procurement has become a focus relates to service delivery addressing
of public attention and deliberation in many procurement related issues in the electricity
countries recently. Van Weele [1] defines sector. It is in view of this that the research aims
procurement as all undertakings that are required to fill this gap by evaluating the effects of
in order to get the product/service from the procurement practices on service delivery with
supplier to its final destination. The practice VRA, Ghana as a case study.
entails the whole lifespan of activities beginning
with need identification, tender evaluation, 1.1 Statement of the Problem
purchasing and ongoing managing of contract
until the culmination of the contract. According to According to Trionfetti, [7] problem associated
Ghana Integrity Initiative [2], procurement has a with public sector through a careful study
significant influence on the state of a country in becomes essential by recognition of the
terms of production and consumption of goods significance of public organizations as body
and services and money supply and a direct premeditated to assist the public, along with the
effect on the lives of individuals daily (Ghana imperious for culpability (Trionfetti) [7]. There is
Integrity Initiatives) [2]. limited empirical literature on the effect of
procurement practices on service provision
Nichols [3] contends that procurement policy is especially so with the electricity sector in
an utmost important procurement function developing countries. The general objective of
contributing to the accomplishment of this study is to determine the effect of
government operations and enhanced service procurement practices on service delivery in the
delivery. electricity sector, a case study of VRA, which
also helps in answering the research questions
Alternatively, Procurement planning being an that necessitated the conduct of this study.
important procurement practice is one of the
factors influencing service delivery. Mullins [4] Leni, et al. [8] asserted that despite the increase
affirms that procurement planning contribution in in resources, delivery of service in the public
enhancing efficient service delivery is largely sector is still decreasing in many developing
undisputed. An efficient procurement system has nations. Consequently, procurement practices
to have a workforce who are professionally such as, procurement policy; sustainable
competent and have the requisite savoir-faire for procurement practices and procurement planning
the job as specified (OECD-DAC) [5]. are factors that may offer part of the reason.
.Establishing a procurement unit who are Electrical energy accessibility and mechanical
professionally competent and have the right skill power are essential for meeting all of the MDG
is very challenging, given vicissitudes to (ESMAP) [9].
procurement processes, the expansion of
alternative contracting approaches, and 1.2 Significant of the Study
increased dependence on services delivered by
the private sector (Government Accountability This study is significant since undeniably its main
Office) [6]. purpose is to add to the already prevailing body
2
of knowledge by filling the gap in empirical 2.2 Socio-economic Theory

literature relating to this research topic.
In considering economics and psychology as
Also, it will be of great importance to the rationale for ethical duty and the social
developing countries' public sectors that deal motivation as deciding variable to one's verdicts
with electricity service delivery especially, VRA on adherence, Sutinen and Kuperan [15]
power sector in Ghana. proposed socioeconomic theory of
acquiescence.
This study will be designated as a guide to help
procurement professionals, various entities; Psychological views provide a framework for
policymakers etc. make sound procurement obtaining organizational agreement and
decisions and also serve as a source of otherwise (Lisa) [16]. Wilmshurst and Frost [17]
reference to future researchers in collecting also confirmed that the Socio-economic theory
empirical data as it relates to the electricity assumes that the Organization can expose its
sector. practices solely to the public and justify its
mission within society's bounds.
2. THEORETICAL FRAMEWORK
In order for the government procurement
Defee, et al. [10] made an indication that, for processes to be recognized (Hui, et al.) [18] this
research to be a good one, it must have its root concept, whose emphasis is on affiliating and
in a concept Mentzer, et al. [11]. This study is working between organization and society.
steered by these two theories:
The theory allows us to understand policy, plan
2.1 Institutional Theory and practices in public institutions with
sustainable procurement and their influence on
Obanda [12] propounded that institutional theory the provision of services to society.
is the customary method which is used to
scrutinize components of government 3. CONCEPTUAL FRAMEWORK
purchasing. Cultural-cognitive and regulative
elements are the basic compositions of Mugenda and Mugenda [19] as a brief
institutions that, together with accompanying description of the phenomenon under study
activities and resources throws more light on life supplemented by a pictorial representation of the
(Scott) [13]. variables under study define conceptual
framework. Aside from displaying the roadmap of
Furthermore, Scott [13] elucidates the three the study, the researcher through a conceptual
pillars of institutions as normative, regulatory and framework illustrates the connections between
cultural-cognitive. The normative refers to norms the different constructs that were to be
(ways of behaving) and canons (requirement), investigated.
shared responsibility being the basis of
acquiescence. The regulatory underscores the 3.1 Procurement Policy and Service
practice of instructions, decrees and sanctions as Delivery
implementation process, with decorum as basis
for acquiescence. The cultural-cognitive rests on Schooner and Whiteman [20] affirms that
mutual comprehension. This concept is procurement policy contributions in facilitating
imperative in relation to the enactment of service delivery in an efficient manner are
sustainable procurement policy and practice in undisputed generally.
service sector organisations. This is a matter of
organizational philosophy and the magnitude to Various aspects of procurement policy have a
which the predominant environment in an distinct influence on procurement precess
organisation is supportive of sustainable and/or (Tkachenko, Yakovlev and Kuznetsova) [21]. For
of change in general. In other sense, this aspect instance, procurement policy that stimulates
includes the extent to which there is support for transparency and integrity in the procurement
sustainable procurement at strategic cycle positively influenced the procurement
organizational level and the degree to which process. According to Rehmatulla, et al. [22],
organizational practices and hierarchy accelerate procurement entities that have good procurement
or impedes sustainable procurement (Brammer & policies also have better service delivery.
Walker) [14]. Transparency ensures that the procurement of
3
goods, works and services are of high quality The threat of being suspended or fired has
and meets the right specification which enables intimidated public officers into obeying
the Organisation to provide quality service. A illegitimate directives from ministers leading to
transparent policy such as E-procurement non-compliance of the public procurement law
ensures value for the organization’s resources by (Akech) [33]. To confirm this, intrusion from the
awarding contracts to suppliers who can provide politicians, business executives, parliamentarians
high-quality services and materials at a and high profile personalities has interrupted the
reasonable price (Vecchiato and Roveda) procurement process and infringe on the
[23]. principle of transparency in public procurement
Tukamuhabwa, et al. [34].
Thai [24] developed a model that depicts
procurement comprising five key elements which Conversely, an assertion by Akech [33] is that
include law formation and administering, aside from public policy governing the public
authorization and appropriations, purchasing purchasing department, the atmosphere provides
department instructions, procurement function in a sense of designed worked that guides all the
operations and procurement workforce and business activities. In the progressing countries
feedback. and specifically transitional countries where the
legal system is not understandable, government
Arrowsmith, [25] and Bolton [26] describes public projects may be important to be explained on its
procurement as a device used for enhancing principles. As “contract management includes all
policies such as organizational and economic correlations between the Government and the
improvement and assistant to historically contractor,” Cibinic Jr. and Nash, Jr. [35] the
underprivileged groups. From the systems legal rights and responsibilities determine the
model’s perspective, however, such laws could proper course of action. And this is important
more specifically be termed desired outcomes since VRA outsources and subcontract most of
(either outputs or impacts), which governments its operations.
attempt to acquire through a particular
procurement policies. Snider, et al. [27] deployed Apparently, procurement policy has an effect on
a useful case descriptions and made brief service delivery especially electricity service
mention of supply policy, but again, their focus delivery by the very nature and complexity in
was centered on distribution policy as a device politics and law governing all phases of service
for government reform. delivery from the standpoint of the provider and
consumer.
Sollish & Semanik [28] alternatively use “policies”
when referring to principles such as 3.2 Procurement Planning and Service
transparency, probity, competition and real value Delivery
for money.
Basheka [36] asserts that procurement planning
Consequently, we find that the study of public is a key function of procurement with the ability to
procurement policy lacks much empirical and add to government institutions and promote
theoretical study. Public procurement system as service provision successfully. Mullins [4] also
elucidated by Thai [29] that it needs to be stated in his study that procurement planning
governed by good procurement laws and contributes to the enhancement of service
regulations which will lead to procurement delivery in an efficient and effective manner in
efficiency or inefficiency. Public procurement is public organizational sectors.
essentially a sensitive activity motivated by
politics. Schapper, et al. [30]. Pillary [31] Mawhood [37] further indicates that an important
contends that high-ranking officials and political channel towards safeguarding the right service
leaders use public office for personal or private delivery is to ensure effective procurement
gain and this has enfeebled the impetus to planning.
remain honest. Moreover, political influences,
according to a study by Lodhia and Burritt [32] An all-encompassing procurement system should
have an important demeanor on public sector have personnel who are professionally trained
reform and that one of the key stumbling blocks and are well fortified with the expertise and
to the effectiveness of the procurement system is competent for procurement jobs specified
ministerial nosiness with the tender process (OECD- DAC) [5]. It is challenging to create a
where ministers intervene and influence contract unit or workforce procurement with the right skills
awards. and capabilities taken into consideration changes
4
to procurement processes, the introduction or determination of customer requirements,

expansion of alternative contracting approaches, identification of key procurement activities, cost
and increased reliance service provision by and time estimation, responsibilities assignment
organisations in the private sector (Government etc.
Accountability Office) [6].
Raymond [39] also traced the lack of
The procurement staff unit “permeates virtually professional and qualified procurement staffs in
every effort within an agency, including public procurement entities to corruption, which
successfully acquiring goods and services and eventually impedes compliance. Effective training
executing and monitoring contracts (Government enhances knowledge skills and behaviors of the
Accountability Office) [6]. personnel and their performance. Improved
performance will result in increased productivity,
Within the framework of the public procurement, improved profit and consequently good results of
part III section 21 of the public procurement act, investing in training Mullins [4].
2003 (Act 663) as amended makes provisions for
a detailed and well-structured mechanism for Mamiro [40] points out that a major setback
procurement planning for public entities. Major related to public procurement is improper or
significance is the prerequisite for the weak planning and controlling of the procuring
procurement plan to contain, among other things, process including not well identified and
contract packages description or lots, cost estimated needs, unspecific, unmeasurable,
estimate, procurement method approval needed unattainable and unrealistic budgets and of the
and processing steps and times and source of skills of procurement unit staff being woefully
funding. inadequate. When decision making is carefully
and properly done and formulated, it can provide
A study by Brown and Hyer [38] also asserted and serves as an important device for extracting,
that generally, procurement planning includes supplying and assessing resources James,
purpose identification, scope definition, [41].
PROCUREMENT POLICY
 Rules and Regulation
 Legal/ Contracting
Environment
 Political Environment
PROCUREMENT PLANNING
 Need Identification
 Need Assessment SERVICE DELIVERY
 Budgetary Approval  Effectively
 Efficiently
 Delivery Schedule
 Reduced Corruption and
 Involvement of Top
Theft Detection
Management
 Quality Improvement and
Supplier Reliability
SUSTAINABLE PROCUREMENT
PRACTICE
 Economical
 Environmental
 Social
 Cultural
Fig. 1. Proposed conceptual framework

Source: Authors’ Own Construct, 2019
5
Public entities have always been involved in David & Muthini [47] assessed the Influence of
enormous purchasing, dealing in huge budget green supply chain management practices on
(Roodhooft and Abbeele) [42]. Public procurement performance of private health
procurement is progressively recognised as institutions in Kenya. From the study conducted,
critical in delivering service in developing it was revealed that green sustainable
countries (Basheka & Bisangabasaiji) [36] and it procurement has a positive relation with service
also represents proportionately a high total delivery in the health sector. In this context,
expenditure and accounts for 18.2% of GDP service delivery is influenced by its procurement
worldwide as noted by Mahmood [37] in his level. The ability for an organization to purchase
research. By understanding the procurement all its need to meet its activities ensures high
processes involved, one may possibly come to productivity level. Thus, adequate logistics and
the recognition of the real cost involved in tools in an organization enable it to sufficiently
attaining goods and services Batley, et al. utilize its resources to meet the required need.
[43]. There is high production hence high consumer
procurement. The study also indicated that there
The use of budget in procurement is one of the is a major relation between suppliers and
best procurement planning strategy. According to production companies. An organization’s
Fisher and Corbalan [44], the procurement performance is promoted when it is able to
budget should correspond to revenues which the produce quality goods for suppliers to distribute
company has set aside for procurement them on the market. Frequent consumption of
activities. Successful budgeting process not only organizations’ products improves the profitability
involves the procurement department, but also yields of the organization hence sustains
other departments that require having items and organizations’ procurement. Also, organizations’
equipment. According to Onyango [45], proper resource has a significant impact on its activities.
specification of equipment and items required by This is because resource management ensures
each department is necessary in procurement high economic benefit hence improves service
planning. The departments have to provide delivery.
budgets which indicate the equipment and items
and the quality standards for suppliers to ensure Nyoike & Ismail [48] examined the effect of
that proper equipment and items are being sustainable procurement practices on service
procured. delivery. The study revealed that making an
assessment on procurements by managers of
3.3 Sustainable Procurement and Service organizations would ensure effective
Delivery procurement practices. In the critical view,
organization is able to manage its profitability
Husseni & Shale [46] assessed the impact of yields more efficiently when it is able to craft a
sustainable procurement on service delivery. The conceptual schedule based on the order of
study deployed that corporate social priorities. Through this process, the organization
responsibility has a significant effect on is able to meet all that is required and needs to
service delivery. This means that for organization be purchased to enable it to run all its activities.
to acquire social reputation, it has to consider With this, it is able to take control of all expenses
social responsibility as an important practice so that are deployed into purchasing logistics and
that quality products would be produced. It was other equipments thus improve its procurement
also established that organizational procurement activities. Again, the introduction of modern
activities can be sustained through the technology in the organization enables decision-
distribution of good and quality products by makers to save cost and enhances service
organizations. Organizations turn to perform delivery. The study also showed that
well when it takes the responsibility of producing organizational integration and collaborations help
quality products to the society. Individuals in the bring togetherness among workers and therefore
society always have a taste for good quality individual collaborations ensure well
products and therefore if organization is interrogations and agreement on a particular
able to produce quality products to satisfy the need thereby promotes organizations’
needs of the individuals, there would be procurement practices.
high taste and preference for that
particular organization thereby serving as a Murutu [49] investigated the influence of
motivation to organization hence sustaining sustainable procurement strategies on supply
procurement. chain performance. The assessment revealed
6
that there is a positive relationship between this, it is able to enhance its activities thereby
sustainable procurement techniques and leads to high performance. Again, it was
distribution chain performance. This deployed revealed that organizational economic resources
that, through procurement strategies, the process are important. The ability for organization to meet
involved in supplying goods to customers is its targeted goals may depend on its financial
significantly affected. This denotes that, suppliers liabilities as well as decision makings.
need to exhibit a technique in distributing goods. Organizations’ procuring activities is very vital
From the study, it was revealed that the amount since it is a major determinant of service
of effect a procurement strategy would have on delivery.
supply chain performance is highly implemented
meaning that a supplier would be able to sustain Oyuke and Shale [53] examined the role of
its procurement activities when a strategy is used sustainable strategic procurement practices and
hence distribution growth. The level change in its effect on service delivery. Procurement
the supply chain can be explained by the activity is a very important factor when running a
following variance; procurement preferences and business. The study revealed to us that,
reservations, green procurement practices, organizations’ relation with its suppliers is very
supplier initiatives as well as electronic much important since they serve as the
procurement. These practices in collaboration marketers for the company or business. Due to
are significantly a determinant of supply chain this, most organizations make sure that the
performance therefore the need to be procurement process is standardized. Managers
implemented. (Kiswili & Ismail) [50]. also make adjustments into ensuring that they
are well related to suppliers. New methodologies
Aila & Ototo [51] assessed sustainable are employed by managers of businesses so as
procurement concept; and adding up to service to ensure a good and flexible procurement
delivery. The study indicated that sustainable process. Since service delivery is mostly affected
procurement is one of the factors that ensure by suppliers, there is always interrelation with
organizational growth. It is deployed from the distributers in the procuring process so that
study that procurement sustainability is very service delivery is improved. Initiating
essential in an organization. Sustainability as a procurement strategies by managers of
term on its own depicts the act of taking organizations help improve the performance of
decisions to ensure that the social, economic and the organization hence the growth of the
standard of living of the community is improved business.
so as to ensure long-term organizational
success. This, therefore, means that sustainable Boraya [54] assessed the relationship between
procurement concept must be taken into collaborative public procurement and
consideration by organizations to ensure high performance among state corporations in Kenya.
service delivery. Sustainable procurement helps The study indicated that external influence had
the organization to make an assessment before affected the performance of corporate entities in
any procuring activity is undertaken. This help Kenya. As a result, there is low service delivery
the organization to prepare a schedule for all by most organizations in Kenya. Due to that,
requirement needed to be purchase. In addition, corporations in the country had adopted new
well utilization of resources enables the reforms and strategies to fight the situation to
organization to be free from excess expenses enable them to enhance performance as well as
thereby improves its procurement process, as a procurement activities in the organization.
result, enhances its performance. Moreover, more research is undertaken by these
corporations to deploy more ways and identify
Islam, et al. [52] assessed the impacts of opportunities that would help them defeat the
sustainable procurement (SP) practices on challenges they are going through.
organisational performance. The study found that
there is a positive relationship between Igarashi, et al. [55], also noted that sustainable
sustainable procurement and service delivery. It procurement practices enhance long term values
was discovered that when organization practices of the supplies purchased, as they are more
procurement maintenance it enables them to sustainable compared to the purchased supplies
make good decisions as to its procuring process. that are not environmentally compliant.
It is able to make informed decisions on ensuring Companies save money by procuring
that all needed tools and devices are considered environmentally-friendly products, which enable
first before any other consumption is made. With the companies to offer cheaper products and
7
services to their customers and hence enhancing Part Two (II) also relates to Procurement
service delivery Uttam and Roos [56]. structures and provides for administrative and
established engagements for procurement. The
Likewise, sustainable procurement that is scope and application of the Act involves
focused on the environment also enhances procurement of goods, works and services
service delivery. Witjes and Lozano [57] funded either wholly or partly from public funds,
argue that ensuring that companies procured functions that pertain to procurement of goods,
from suppliers that are environmentally- works and services including the description of
conscious, enhance satisfaction of requirement and source of supply, selection and
customers. award of contracts and the phases of contract
administration. It also includes the
Moreover, sustainable economic procurement responsibilities of a procurement entity and
ensures that procured goods and services will institutes the Entity Tender Committee (ETC) and
deliver high-quality services to customers. It ensures compliance with Tender Review
eliminates the procurement of defective goods Committees whose duty is line with the provision
and poor service thus enhancing the service of contemporaneous endorsements for
delivered to customers. Sonnino and McWiliam, recommendations for award of contract.
[58].
Part Three (III) deals with procurement rules,
3.4 The Public Procurement (Amended) procurement plan, tenderers qualification and
Act 2016, (Act 914) of the Republic of prequalification proceedings. It also indicates
Ghana other issues like suspension of supplier or
consultant, prequalification proceedings, decision
Public procurement of Ghana is regulated by an on prequalification, participation in procurement
Act of Parliament which was passed into law in proceedings, form of communication, records of
December 2003, Act 663 and consequently procurement proceedings, cancelation of
revised and approved by the Legislative body of procurement records, denunciation of tenders,
the Republic of Ghana and consented to by the proposals and quotations and issues relating to
Head of state in 11th May 2016, Act 914. The the entry into force of procurement contract,
(Amended) Act 2016, (Act 914) is an act to notification of procurement contract award to the
amend the Public Procurement Act, 2003 ( Act public, inducement and confidentiality.
663), to make further public procurement Part Four (IV) deals with procurement methods
provision, re-enact part two of the Act, provide for such as competitive tendering, two-stage
decentralized procurement and for connected tendering, restricted tendering or single source
purposes. tendering and request for price quotation and
specifies the procedure and condition of use,
The Public Procurement Act as amended is including framework contracting.
organized into sections and parts which relates
to issues of different nature. It has ninety-nine Part Five (V) looks at procedures for tendering.
sections and divided into nine parts. This section is subdivided into three namely;
invitation of tenders and application to prequalify,
Part One (I) established the Public Procurement submission, evaluation and comparison of bids.
Authority as a corporate body with a continuous
progression and a common seal aim to Part Six (VI) deals with techniques and
reorganize and bring into line or synchronize procedures to employ the services of
public procurement processes to secure prudent, consultants. It spells out the notification of
cost-effective and efficient use of public funds expression of interest invitation and preparation
and guarantee fair, transparent and non- of shortlists, shortlisted candidates, illumination
discriminatory, environmentally and socially and modification of request for proposals,
sustainable procurement practices. The Authority selection procedure, and receipt and evaluation
has a number of functions, the most important of proposals.
ones being regulations and policy formulation,
employee training and capacity building; Part Seven (VII) contains the complaints and
development of local industries; monitoring and administrative review. It also spells out the
evaluation and warranting that public review and complaint procedure, definite rules
procurement is mainstreamed into public applicable to review proceedings and issues on
financial management system. deferment of procurement proceedings.
8
Part Eight (VIII) deals with the disposal of stores, deliver service with specific interest in VRA,
vehicles, plant and equipment. It indicates the Ghana as electricity service provider that is
authority to dispose, instruction and disposal of crucial to other service provision in spite of its
unserviceable stores procedures and guidelines. development of encouraging policy framework
internationally (Department for Environment,
Part Nine (IX) of Section IX deals with conduct, Food and Rural Affairs (DEFRA), [70] European
modifications, information request and inquiry by Commission [71] Relatively little research has
the Board, procedure on investigation addressed Sustainable procurement (SP) in a
completion, legislative reviews, and procurement public sector context Preuss, [72].
related offenses, corrupt practices, threshold
levels review, international obligation, use of 4. MATERIALS AND METHODS
procurement agent, regulations and
interpretation. This study adopted a case study approach with a
focus on VRA. Quantitative data was also used
3.5 Research Gap for this research study. The numerical data
When it comes to the study of service delivery in obtained from the field was subjected to
the electricity sector, limited research exists that quantitative analysis with the use of descriptive
addresses procurement issues as factors statistics and with the help of SPSS and
affecting or influencing the provision of electricity. Microsoft version of Excel. To select a
For example; the Electricity Governance Initiative representative sample from a target population of
(EGI), led by the World Resources Institute and 241 employees with 150 respondents as the
Prayas Energy Group, addresses the sample size, a stratified sampling technique was
transparency and accountability of decision- adopted. Likert- Scale questionnaires were
making processes in the power sector Dixit, et al. designed and administered to Management,
[59]. Application of the toolkit in India and South procurement staff, Technical Department,
Africa has focused on power sector reform (EGI finance and audit department within VRA.
South Africa, [60] Mahalingham, et al.) [61].
Other studies have examined “consumer’s 4.1 Research Design
experience” of electricity services from a political
economy perspective, in a specific location or Research designs are the research strategy and
concerning a specific aspect of electricity framework designed to provide answers to
services, such as subsidies or theft (Golden & questions from study. Klenke [73] describes
Min, [62] Jain, [63]. The literature on such research design as that structure which guides
experiences is dominated by South Asian cases, the data collection and subsequent analysis. It
including that of Oda and Tsujita [64] but not to permits the researcher to connect empirical data
Africa. to its conclusions to the initial research question
in a logical sequence. The design incorporates
Nonetheless, there is limited research in the area the problem identification, investigating the
of procurement policies and in particular with problem by collecting data through
respect to its implications on service delivery. questionnaires, interviews, data analysis, and
Chalton [65] conducted a research on the recommendations. There are several methods of
challenges of implementing procurement policies collecting data and their appropriateness and
in state corporations in Kenya, Nyaboke, et al. legitimacy hinge on many factors. These factors
[66] conducted research on the effects of public range from the researcher’s scholastic
procurement policies on organizational background and respondents to the subject.
performance which was focus on the water According to Saunders, Lewis, and Thornhill [74]
sector. Additionally, Ndung’u J. M. [67] data collection method can either be quantitative,
conducted research on the effect of procurement qualitative or mixed-method.
policy on customer service delivery in the
telecommunication sector while, Obiero [68] did a 4.2 Population of the Study
study on the challenges in the implementation of
the Public Procurement & Disposal Act 2005 [69] According to Orodho [75] population refers to the
in the Ministry of Higher Education, Science and larger group from which a sample is taken. The
Technology in Kenya. This study therefore elements in the population are the direct and
sought to establish the effects of public indirect beneficiaries of the end product of the
procurement policies as one of the factors on research. The target population, on the contrary,
organizational performance in their effort to is defined as a definite collection to which the
9
researcher is engrossed in making a sweeping Management, Procurement department,

statement on conclusions Catillo, [76]. Technical department, Finance and Audit were
presented with the questionnaire to fill
For this research, the target populations are 241 themselves. According to Anderson, [80] the
employees drawn from Managements, questionnaire has a wider coverage area. Kotari
Procurement, Technical departments and [81] also opined that the questionnaire is cost-
Finance and Audit department of VRA, Ghana. effective in terms of finance, time and energy.
Likewise, it yields quantitative data which is
4.3 Techniques and Size stress-free in collection. The reason for using this
instrument was to collect different views from
Sampling is a key component and involves a
different staffs in relation to procurement
number of considerations in any investigation.
practices and its effect on service delivery. The
Huber [77] reports that a sample constitutes a
questionnaire is more confidential and have an
percentage of the research population carefully
upper hand over other instruments since
selected to participate in a study as a population
information can be collected from large samples
representative. It refers to a set of observations
and the chance for biased is drastically
derived by a defined method from a population. A
minimized. The questionnaire was primarily
laminated sampling approach was employed in
Likert scale questions where the procurement
this analysis. In this experiment, the strata in the
policy and sustainable procurement practices
target population is heterogeneous and the
were adopted from Davis, M. J. [82] in his
results of the study are crucial if the purpose of
research study entitled “Procurement Practices
the study to be achieved are to be followed with
Influencing Service Delivery: A Case of Kenya
stratified simple random sampling techniques.
Power” but the researcher redesigned the
The study used Yamane's formulae, n= N/ (1 +
procurement planning and service delivery to suit
Ne2), to determine the sample size (Yamane
the objectives of the current study in order to
1967:25) [78].
solicit answers that would meet the objectives.
Where:
4.4.3 Secondary data
n =Sample size
N =Target Population (241) These are data that have been collected already
e = error of 5% point by someone else Hox & Boeije, [83] in this case
the researcher utilized books, journals, internet
Therefore sample size (n) is calculated below: search and organization records. Secondary data
was useful in discovering the subject of the study
n= 241
2 and establish the focus of the study before going
{1 + 241(0.05 )}
to the relevant primary source.
n= 241
{1 +241(0.0025)} 4.4.4 Data analysis method
n= 241 The raw data acquired from the questionnaire

1.603 responses were processed and analyzed to
attain the needed information from which
n= 150 respondents relevant conclusions could be drawn. The nature
of the issues and processes under discussion
4.4 Data Collection Method necessitated the use of qualitative and
quantitative analysis for the data collected. The
4.4.1 Primary data
data collected was transmuted into a form
According to Kothari [79] primary data are suitable for manipulation and analysis. The data
collected anew and for the first time field surveys were scrutinized to determine
notwithstanding its originality in character. To appropriateness, resoluteness, sufficiency and
deal with this, a questionnaire was used to exactitude of the data. The responses from the
gather the primary data. survey for diverse respondents were coded into
Statistical Package for Social Sciences (SPSS)
4.4.2 Questionnaire method and Excel, Graph and tables were employed as
representative of the outcomes. The following
Self-administered questionnaires were employed types of analyses were considered in the study:
where respondents comprising some staff from Correlations, regression, relative important index
10
Anane et al.; AJEBA, 13(1): 1-23, 2019;; Article no.AJEBA.53090
no.
and mode. The edited responses were presented the respondents are in the finance/audit
and analyzed. department, 35 (25.5%) of the respondents are in
the procurement department, 32 (23.4%) are in
5. DATA, ANALYSES AND DISCUSSION the technical department with 10 (7.3%) being
managers and 1 (0.7%) belonging to other
The analysis and discussion emphasis the departments.
results on the effect of procurement practices on
service delivery. The effects of procurement
5.3 Electricity Connectivity throughout
practices on service delivery had been explored
using regression and Pearson correlation. Also, Ghana to the General Public
included in the analyses were relative
important index, mode, means and standard Fig. 4 shows the perception of electricity
deviation. connection throughout Ghana. The study shows
that majority 75 (54.7%) of the respondents
viewed electricity connectivity to the Ghanaian
5.1 Respondents Position at the
public as business, 28 (20.4%) of the
Company respondents stated that it is a social obligation,
18 (13.1%) view electricity connectivity to be
Fig. 2 presents the position of respondents in the industrial/economic growth and 16 (11.7%)
company. The results show that 61 (44.5%) of viewed electricity connectivity as poverty
the respondents are contract staff, 38
3 (27.7%) of reduction.
the respondents are junior staff, 30 (21.9%) are
senior staff and 8 (5.8%) of the respondents
5.4 Procurement Policy
belong to other groups.
5.2 Job Designation/Department Procurement policy has been described herein

using means and standard deviations. The study
Fig. 3 presents the job design or department of used 5-point
point likert scale where a mode of 5
respondents. The study finds that 59 (43.1%) of suggests that respondents strongly agree to the
Frequency
80
60
40
20 Frequency
0
senior Junior contract other
staff staff staff
Fig. 2.. Respondents position at the company

Source: Field Survey, 2019
Frequency
60
40
20
0 Frequency
Fig. 3. Job designation/department

11
Anane et al.; AJEBA, 13(1): 1-23, 2019;; Article no.AJEBA.53090
no.
Frequency
80
60
40
20 Frequency
0
Fig. 4. Electricity connectivity throughout Ghana to the general public

item, mode of 4 suggests that respondents agree so, majority of the respondents (Mode=4) agreed
to the item, a mode of 3- suggests that that contracting practices are the main reasons
reaso
respondents are undecided, a mode of 2- 2 leading to higher cost of connection throughout
suggests that respondents disagree to the item Ghana. Above average of the respondents
and a mode of 1- suggests that respondents (Mode=4) showed that contractor charges are
strongly disagree to the item. too high for contract VRA subcontract or
outsource and that is the reason leading to high
Table 1 presents the descriptive statistics on cost to the customer especially the areas with
procurement policy. The survey shows that with poor infrastructures. Moving on, above average
procurement policy, majority of the respondents of the respondents (Mode=4) agreed that the
(Mode=2) disagreed that VRA has its own contractors sometimes cause problems when it
procurement policy that governs all procurement comes to contract completions as well as
and contract activities. Majority of the implementations on time and that is leading to
respondents
dents (Mode=4) agreed that all the issues with slow service to some
procurement activities within VRA are governed communities. Again, more than average of the
by the public procurement Act 663 as amended. respondents (Mode=4) stated that contractors
Also, majority of the respondents (Mode=4) are not paid on time and this is making things
agreed that VRA’s top management viewed the difficult for the procurement department to
procurement functions as important as any other
oth maintain good suppliers and that is a factor
department within the company to help it achieve leading too higher charges for those that want to
the missions and obligations of the company take risk. Lastly, with respect to the political
operations. Moreover, a moderate number of environment, more than half of the respondents
respondents (Mode=4) indicated that (Mode=4) agreed that VRA’s procurement
procurement decisions are influenced by the spending is not managed nor influenced by the
managing director/CEO. With rules and company’s procurement managers or
regulations flexibility, more than half of the department.
respondents (Mode=4) agreed that the public
procurement rules and regulations are 5.5 Procurement Planning
hampering the operations of the company for
speedy acquisition of goods and services or Procurement Planning has been described
contractual arrangements and more than half of herein using mode and standard deviations.
the respondents (Mode=4) showed that the
procurement function within VRA is influenced by Table 2 presents procurement planning. With
the public procurement act 663 as amended. needs identification, the study found that slightly
above half of the respondents (Mode=4)
Regarding the legal/contracting environment, confirmed that VRA procures based on needs
more than half of the respondents (Mode=4) identification initiated by user departments. Also,
agreed that contracting between VRA and other the study discovered that half of the respondents
sub-contractors
contractors are considered on the basis of (Mode=4) stated that purchases are made based
cost transfer that could affect the cost of on materials planning ensuring that items
connection by the poor to the electric grid. More purchased are on schedule with more than half
12
of the respondents (Mode=4) showed that VRA Table 3 presents sustainable procurement. From
decides whether to produce the goods or the table, the majority of the respondents
services in-house or source them externally. (Mode=4) agreed that VRA does not have a
Also, more than average of the respondents sustainable procurement policy. On the contrary,
(Mode=4) indicated that decisions are taken on most of the respondents (Mode=1) strongly
funding the applicable procurement rules and disagreed that they do not have an
method and the majority of the respondents understanding of what sustainable procurement
(Mode=4) strongly agreed that VRA prepares a practices are and similarly, most of the
timetable for the procurement process to serve respondents (Mode=1) strongly disagreed that
as a guideline. sustainable procurement is not important to the
realization of the VRA’s mission and obligations.
5.6 Sustainable Procurement Also, most of the respondents (Mode=1) strongly
disagreed that corporate social responsibility is
Sustainable Procurement has been described the only aspect of sustainable procurement
herein using mode and standard deviations. practices that VRA applies to the society and
Table 1. Descriptive statistics on procurement policy
Statements SA A N D SD Mode
Procurement policy
VRA has its own procurement policy that governs all 10.2% 13.1% 10.2% 21.9% 44.5% 2
procurement and contract activities.
All procurement activities within VRA are governed by 40.9% 45.3% 10.9% 2.9% - 4
the Public procurement Act 663 as amended.
VRA’s top management viewed the procurement 32.8% 44.5% 17.5% 5.1% - 4
functions as important as any other department within
the company to help it achieve the missions and
obligations of the company operations
Procurement decisions are influenced by the 25.5% 48.9% 21.2% 2.9% 1.5% 4
managing director/ CEO.
Rules and regulation flexibility
The public procurement rules and regulations are 17.5% 43.8% 32.8% 4.4% 1.5% 4
hampering the operations of the company for speedy
acquisition of goods and services or contractual
arrangements
The procurement function within VRA is influenced by 17.5% 47.4% 27.7% 2.9% 2.9% 4
the public procurement act 663 as amended.
Legal/Contracting environment
Contract between VRA and other subcontractors are 19.0% 49.6% 23.4% 6.6% 1.5% 4
considered on the basis of cost transfers that could
affect the cost of connection by the poor to the electric
grid.
Contracting practices are the main reasons leading to 29.2% 49.6% 18.2% 2.9% - 4
higher cost of connection throughout Ghana.
Contractor charges are too high for contract VRA 29.9% 42.3% 21.9% 2.9% 2.9% 4
subcontract or outsource and that is the reason
leading to the high cost to the customer especially the
areas with poor infrastructure.
The contractors sometimes cause problems when it 22.6% 43.1% 29.9% 2.9% 1.5% 4
comes to contract completions as well as
implementations on time and that is leading to the
issues with slow service to some communities.
Contractors are not paid on time and this is making 17.5% 61.3% 19.7% - 1.5% 4
things difficult for the procurement department to
maintain good suppliers and that is a factor leading to
higher charges for those that want to take a risk.
Political environment
VRA’s procurement spending is not managed nor 20.4% 57.7% 20.4% 1.5% - 4
influenced by the company’s procurement managers
or department.
13
Table 2. Descriptive statistics on procurement planning
Need identification
VRA procures based on needs identification initiated by 19.7% 51.8% 17.5% 9.5% 1.5% 4
user departments.
Purchases are made based on materials planned 16.1% 42.5% 17.5% 7.3% 16.8% 4
ensuring that items purchased are on schedule
VRA decides whether to produce the goods or services 17.5% 48.2% 30.7% 3.6% - 4
in-house or source them externally.
Decisions are taken on funding the applicable 26.3% 46.0% 21.9% 2.9% 2.9% 4
procurement rules and method
VRA prepares a timetable for procurement process to 26.3% 55.5% 16.8% 1.5% - 4
serve as a guideline
Source: Field Survey, 2019. Where SA=Strongly Agree; A=Agree; N=Neutral; D=Disagree; SD=Strongly Disagree
Table 3. Descriptive statistics on sustainable procurement
Sustainable procurement
VRA does not have a sustainable procurement policy 13.9% 52.6% 18.2% 12.4% 2.9% 4
We don’t have understanding of what sustainable 8.8% 13.1% 8.8% 5.8% 63.5% 1
procurement practices are
Sustainable procurement is not important to the 5.8% 13.1% 10.2% 16.1% 54.7% 1
realization of the VRA’s mission and obligations
Corporate social responsibility is the only aspect of 10.2% 13.1% 10.2% 21.9% 44.5% 1
sustainable procurement practices that VRA applies to
the society
Due to the effect of sustainable procurement practices 40.9% 45.3% 10.9% 2.9% - 4
on our budgetary allocations and owing to the high
cost of sustainable goods and materials on the market,
we don’t consider sustainable procurement practices.
Lack of sustainable materials for the electricity sector 32.8% 44.5% 17.5% 5.1% - 4
for our operations hinders the application of
sustainable procurement practices
Economical
We do not consider the economical aspect of 25.5% 48.9% 21.2% 2.9% 1.5% 4
sustainable procurement in the procurements or
contract decisions.
Environmental
The environmental aspects of sustainable 17.5% 43.8% 32.8% 4.4% 1.5% 4
procurement have high cost implication and so we
don’t consider it in our procurement or contracting
decision
Social
The social aspects of sustainable procurement have a 17.5% 47.4% 27.7% 2.9% 4.4% 4
lot of monitoring and cost implication-delivery and so
we don’t consider it in the procurement or contracting
decisions
Cultural
The cultural lifestyle of the rural community makes it 19.0% 49.6% 23.4% 6.6% 1.5% 4
challenging for VRA to apply sustainable procurement
practices within the procurement or contracting
decision
majority of the respondents (Mode=4) agreed sustainable procurement practices. More so,
that due to the effect of sustainable procurement majority of the respondents (Mode=4) agreed
practices on our budgetary allocations and owing that the lack of sustainable materials for the
to the high cost of sustainable goods and electricity sector for our operations hinders the
materials on the market, we don’t consider application of sustainable procurement practices.
14
Moving on, more than half of the respondents reviews and supplier evaluation. Regarding
(Mode=4) agreed that they do not consider the reduced corruption and theft detection, most of
economic aspect of sustainable procurement in the respondents (Mode=4) agreed that through
the procurements or contract decisions. In the examination of the procurement cycle, VRA is
same way, more than the average of the able to reduce corruption and also detect theft
respondents (Mode=4) indicated that the and with quality improvement and supply
environmental aspects of sustainable reliability, majority of the respondents (Mode=4)
procurement have high-cost implication and so agreed that VRA is assured of quality
they do not consider it in their procurement or improvement and supplier reliability through
contracting decision. Moreover, majority of the supplier audit and supplier evaluation.
respondents (Mode=4) agreed that the social
aspects of sustainable procurement have a lot of 5.8 Effect of Procurement Policy,
monitoring and cost implication and so they do Procurement Planning and
not consider it in the procurement or contracting Sustainable Procurement on Service
decisions and most of the respondents (Mode=4) Delivery
agreed that the cultural lifestyle of the rural
community makes it challenging for VRA to apply The study had employed Pearson correlation to
sustainable procurement practices within the assess the presence of multicollinearity in the
procurement or contracting decision. estimated regression model. Variance Inflation
Factor (VIF) scores were all less than ten (VIF <
5.7 Service Delivery 10). Tolerance statistics were all less than one.
Service delivery has been described herein using The study revealed a strong significant (r = 0.72,
mode and standard deviations. p-value < 0.05) positive correlation between
procurement policy and services delivery.
Table 4 presents the service delivery of Moreover, the result showed that a strong
respondents. The survey discovered that with significant (r = 0.55, p-value < 0.05) positive
efficiency and effectiveness, the majority of the correlation between procurement planning and
respondents (Mode=4) stated that VRA ensures service delivery. Again the study found a weak
procurement system operates on a timely significant (r = 0.19, p-value < 0.05) positive
manner within a minimum bureaucracy with the correlation between sustainable procurement
involvement of top management and delivery and services delivery. The results revealed the
schedules. Most of the respondents (Mode=4) serial correlation was not found in the study.
agreed that through policy reviews, delivery More so, the relationship between the control
checking, and supplier audits, VRA is able to variables and the dependent variable. However,
achieve efficiency in terms of value for money weak associations were found among the control
and a greater proportion of respondents variables. These further suggested that there
(Mode=4) agreed that VRA is able to achieve were no noticeable serial correlations in the
procurement effectiveness through system study.
Table 4. Descriptive statistics on service delivery
Efficiency and effectiveness
VRA ensures procurement system operates on a timely 29.2% 49.6% 18.2% 2.9% - 4
manner within a minimum bureaucracy with the
involvement of top management and delivery schedules
Through policy reviews, delivery checking, and supplier 29.9% 42.3% 21.9% 2.9% 2.9% 4
audits, VRA is able to achieve efficiency in terms of value
for money
VRA is able to achieve procurement effectiveness 22.6% 43.1% 29.9% 2.9% 1.5% 4
through system reviews and supplier evaluation
Reduced corruption and theft detection
Through examination of the procurement cycle, VRA is 17.5% 61.3% 19.7% - 1.5% 4
able to reduce corruption and also detect theft
Quality improvement and supplier reliability
VRA is assured of quality improvement and supplier 40.9% 43.8% 13.1% 2.2% - 4
reliability through supplier audit and supplier evaluation
Source: Field Survey, 2019. Where SA=Strongly Agree; A=Agree; N=Neutral; D=Disagree; SD=Strongly Disagree
15
Table 5. Correlation
Procurement Procurement Sustainable Service
policy planning procurement delivery
Procurement Pearson
Policy Correlation
Sig. (2-tailed)
Procurement Pearson 0.588
Planning Correlation
Sig. (2-tailed) 0.000
Sustainable Pearson 0.709 0.134
Procurement Correlation
Sig. (2-tailed) 0.000 0.120
Service Pearson 0.725 0.553 0.195
Delivery Correlation
Sig. (2-tailed) 0.000 0.000 0.022
**. Correlation is significant at the 0.01 level (2-tailed)
*. Correlation is significant at the 0.05 level (2-tailed)
Table 6. Results of regression
Model Unstandardized Standardized T- P- Collinearity

coefficients coefficients statistic Value statistics
B Std. error Beta Tolerance VIF
(Constant) 6.913 1.109 6.231 0.000
Procurement 0.623 0.043 1.289 14.460 0.000 0.250 4.005
Policy
Procurement 0.027 0.016 -0.111 1.744 0.083 0.493 2.028
Planning
Sustainable 0.395 0.041 -0.704 9.674 0.000 0.375 2.669
Procurement
R Square 0.736
Adjusted R Square 0.730
Df 3
F-Statistic 123.594
P-Value 0.000
a. Dependent Variable: Service Delivery
The regression model employed in this study that procurement policy contributions in
was fit (F-statistics = 123.59, p-value 0.000 < facilitating service delivery in an efficient manner
0.05). Thus the 73.6% (R-Square) variations in are generally undisputed.
service delivery were explained by Procurement
Policy, Procurement Planning, and Sustainable Various aspects of procurement policy have a
Procurement. distinct influence on procurement process
Tkachenko, Yakovlev and Kuznetsova, [21] for
6. DISCUSSION OF FINDINGS instance, procurement policy that stimulates
transparency and integrity in the procurement
6.1 Procurement Policy and Service cycle positively influenced the procurement
Delivery process. Rehmatulla, et al. [22] also noted that
procurement entities that have good procurement
The study found that Procurement Policy (β = policies also have better service delivery.
0.623 ρ = 0.000 < 0.05) is significant Transparency ensures that the procurement of
determinants of service delivery thus a unit goods, works and services are of high quality
change in procurement policy will result in 62.3% and meets the right specification which enables
change in service delivery. These results are the Organisation to provide quality service. A
consistent with previous studies. For instance transparent policy such as E-procurement
Nichols (2002) asserts that procurement policy is ensures value for the organization’s resources by
a principal function of procurement that awarding contracts to suppliers who can provide
contributes immensely to government operations high quality services and materials at a
successfully and facilitates effective service reasonable price Vecchiato and Roveda,
delivery. Schooner and Whiteman [20] affirms [23].
16
Thai [24] developed a model that depicts Conversely, an assertion by Thai [29] is that
procurement comprising five key elements which aside public policy governing the public
include law formation and administering, purchasing department, the atmosphere provides
authorization and appropriations, purchasing sense of designed worked that guides all the
department instructions, procurement function in business activities. In the progressing countries
operations and procurement workforce and and specifically transitional countries where legal
feedback. Arrowsmith [25], and Bolton [26] system is not understandable, government
describes public procurement as a device use for projects may be important to be explained on its
enhancing policies such as organizational and principles. As “contract management includes all
economic improvement and assistant to correlations between the Government and the
historically underprivileged groups. From the contractor,” Cibinic, Jr. and Nash, Jr., [35] the
systems model’s perspective, however, such legal rights and responsibilities determine the
laws could more specifically be termed desired proper course of action. And this is important
outcomes (either outputs or impacts), which since VRA outsources and subcontract most of
governments attempts to acquire through a its operations.
particular procurement policies. Snider, et al. [27]
deployed a useful case descriptions and Apparently, procurement policy has an effect on
make brief mention of supply policy, but again, service delivery especially electricity service
their focus was centered on distribution policy as delivery by the very nature and complexity in
a device for government reform. Sollish & politics and law governing all phases of service
Semanik [28] alternatively use “policies” delivery from the standpoint of the provider and
when referring to principles such as consumer.
transparency, probity, competition and real value
for money. 6.2 Procurement Planning and Service
Delivery
Public procurement system as elucidated by Thai
[29] that it needs to be governed by a good Procurement Planning (β = 0.027, ρ=0.080<
procurement laws and regulations which will lead 0.05) is significant determinants of service
to procurement efficiency or inefficiency. Public delivery thus a unit change in procurement
procurement is essentially a sensitive activity planning will result in 2.7% change in service
motivated by politics Schapper, et al. [30] Pillary delivery. These results are supported by
[31] contends that high-ranking officials and researchers such as Basheka [36] who asserted
political leaders use public office for personal or that procurement planning is a key function of
private gain and this has enfeebled the impetus procurement with the potential to contribute to
to remain honest. Raymond [39] also opined that government operations and improved service
ministers and politicians entertain bribery and delivery successfully. Mullins [4] also stated in
corruption in the procurement process which his study that procurement planning contributes
eventually impedes the process and constrains to the enhancement of service delivery in
compliance. Moreover, political influences, efficient and effective manner in public
according to a study by Lodhia and Burritt [32] organizational sectors.
have an important demeanor on public sector
reform and that one of the key stumbling block to Mawhood [84] further indicates that an important
the effectiveness of procurement system is channel towards safeguarding the right service
ministerial nosiness with the tender process delivery is to ensure effective procurement
where ministers intervene and influence contract planning.
awards.
Mansi and Pandey [85] also asserted that
The threat of being suspended or fired has procurement planning positively affects service
intimidated public officers into obeying delivery if it is done properly. Appropriately,
illegitimate directives from minister leading to planning ensures that procurement is in line the
non-compliance of the public procurement law organizational needs and encourages the
Akech, [33]. To confirm this, intrusion from the capability to meet customer expectations, which
politicians, business executives, parliamentarians is an important aspect of service delivery
and high profile personalities has interrupted the Ruparathna and Hewage [86].
procurement process and infringe on the
principle of transparency in public procurement Within the framework of the public procurement,
Hui, et al. [18]. part III section 21 of public procurement act,
17
2003 (Act 663) as amended makes provisions for therefore the need to be implemented Kiswili &
a detailed and well-structured mechanism for Ismail, [50].
procurement planning for public entities. Major
significance is the prerequisite for the Aila & Ototo [51] assessed sustainable
procurement plan to contain, among other things, procurement concept; and adding up to service
contract packages description or lots, cost delivery. The study indicated that, sustainable
estimate, procurement method approval needed procurement is one of the factors that ensure
and processing steps and times and source of organizational growth. It is deployed from the
funding. A study by Brown and Hyer (2010) also study that procurement sustainability is very
asserted that generally, procurement planning essential in an organization. Sustainability as
includes purpose identification, scope definition, term on its own depicts the act of taking
determination of customer requirements, decisions to ensure that the social, economic and
identification of key procurement activities, cost standard of living of the community is improved
and time estimation, responsibilities assignment so as to ensure long-term organizational
etc. success. This therefore means that sustainable
procurement concept must be taken into
6.3 Sustainable Procurement Practices consideration by organizations to ensure high
and Service Delivery service delivery. Sustainable procurement helps
the organization to make assessment before any
Sustainable Procurement (β = 0.39 ρ=0.000 < procuring activity is under taken. This help the
0.05) is a significant determinant of service organization to prepare schedule for all
delivery. Thus a unit change in sustainable requirement needed to be purchase. In addition,
procurement policy will result in 39% change in well utilization of resources enables the
service delivery. A sustainable procurement organization to be free from excess expenses
practice (SPP) is a factor influencing service thereby improves its procurement process as a
delivery in the public sector Organisations and result enhances its performance.
undeniably the energy sector. Husseni & Shale
[46] assessed the impact of sustainable Islam, et al. [52] assessed the impacts of
procurement on service delivery. And found that sustainable procurement (SP) practices on
organizational procurement activities can be organisational performance. The study found
sustained through the distribution of good and that, there is a positive relationship between
quality products by organizations. Sarhaye & sustainable procurement and service delivery. It
Marendi [87] assessed green sustainable was discovered that when organization practices
procurement and its influence on service procurement maintenance it enable them make
delivery. From the study conducted, it was good decisions as to its procuring process. It is
revealed that green sustainable procurement has able to make inform decisions on ensuring that
a positive relation with service delivery. Nyoike & all needed tools and devices are considered first
Ismail [48] examined the effect of sustainable before any other consumption is made. With this,
procurement practices on service delivery. The it is able to enhance its activities thereby leads to
study revealed that, making an assessment on high performance. Again, it was revealed that,
procurements by managers of organizations organizational economic resources are
would ensure effective procurement practices. important. The ability for organization to meet its
Murutu [49] investigated the influence of targeted goals may depend on its financial
sustainable procurement strategies on supply liabilities as well as decision makings.
chain performance. The assessment revealed Organizations’ procuring activities is very vital
that, there is a positive relation between since it is a major determinant of service delivery.
sustainable procurement techniques and
distribution chain performance. This deployed Oyuke and Shale [53] examined the role of
that, through procurement strategies the process sustainable strategic procurement practices and
involve in supplying goods to customers is its effect on service delivery. Procurement
significantly affected. The level change in supply activity is very important factor when running a
chain can be explained by the following variance; business. The study revealed to us that,
procurement preferences and reservations, organizations’ relation with its suppliers is very
green procurement practices, supplier initiatives much important since they serve as the
as well as electronic procurement. These marketers for the company or business. Due to
practices in collaboration are significantly a this, most organizations make sure that
determinant of supply chain performance procurement process is standardized. Managers
18
also make adjustment into ensuring that they are study found that 73.6% (R-Square) variations in
well related with suppliers. New methodologies service delivery were explained by Procurement
are employed by managers of businesses so as Policy, Procurement Planning and Sustainable
to ensure good and flexible procurement Procurement. The study found that Procurement
process. Since service delivery is mostly affected Policy (β = 0.623 ρ=0.000< 0.05) are significant
by suppliers, there is always interrelation with determinants of service delivery thus a unit
distributers in the procuring process so that change in procurement policy will result in 62.3%
service delivery is improved. Initiating change in service delivery. Procurement
procurement strategies by managers of Planning (β=0.027, ρ=0.080<0.05) are significant
organizations help improve the performance of determinants of service delivery thus a unit
the organization hence the growth of the change in procurement planning will result in
business. Boraya [54] assessed the relationship 2.7% change in service delivery. Sustainable
between collaborative public procurement and Procurement (β=0.39 ρ=0.000<0.05) are a
performance among state corporations in Kenya. significant determinant of service delivery. Thus
The study indicated that, external influence had a unit change in sustainable procurement will
affected the performance of corporate entities in result in 39% change in service delivery. From
Kenya. As a result there is low service delivery the model estimation procurement policy was the
by most organizations in Kenya. Due to that, strongest predictor of service delivery followed by
corporations in the country had adopted new sustainable procurement and lastly procurement
reforms and strategies to fight the situation to planning. The study revealed a strong significant
enable them to enhance performance as well as (r=0.72, p-value<0.05) positive correlation
procurement activities in the organization. between procurement policy and services
Moreover, more research is undertaken by these delivery. Moreover, the result showed that a
corporations to deploy more ways and identify strong significant (r=0.55, p-value<0.05) positive
opportunities that would help them defeat the correlation between procurement planning and
challenges they are going through. service delivery. Again the study found a strong
significant (r=0.19, p-value<0.05) positive
Igarashi, et al. [55], also noted that sustainable correlation between sustainable procurement
procurement practices enhance long term values and services delivery. The results revealed the
of the supplies purchased, as they are more serial correlation was not found in the study.
sustainable compared to the purchased supplies More so, the relationship between the control
that are not environmentally compliant. variables and the dependent variable. However,
Companies save money by procuring weak associations were found among the control
environmentally-friendly products, which enable variables.
the companies to offer cheaper products and
services to their customers and hence enhancing The study found that VRA does not have its own
service delivery Uttam and Roos, [56]. procurement policy that governs all procurement
and contract activities hence all procurement
Likewise, sustainable procurement that is
activities within VRA are governed by the public
focused on the environment also enhances
procurement Act 663 but the public procurement
service delivery. Witjes and Lozano [57] argue
rules and regulations are hampering the
that ensuring that companies procured from
operations of the company for speedy acquisition
suppliers that are environmentally-conscious,
of goods and services or contractual
enhance satisfaction of customers.
arrangements. The researcher recommends that
VRA as a company should be given the
Moreover, sustainable economic procurement
autonomy to develop their own procurement
ensures that that procured goods and services
policies that will be binding on all purchasing
will deliver high quality services to customers. It
activities. This will help to facilitate transactions
eliminates procurement of defective goods and
and promote the day-to-day activities.
poor service thus enhancing the service
delivered to customers. Sonnino and McWiliam,
[58]. Also, the study recommends that there must be a
procurement planning team that will focus on
7. CONCLUSION entering into transactional and contractual
agreements to ensure that all immediate and
This study was conducted to determine the effect future procurement activities of VRA are properly
of procurement policy, procurement planning and planned. This planning process will take into
sustainable procurement on service delivery. The consideration the variables that control the
19
industry they operate in to be able to develop the 4. Mullins DR. Accountability and
needed approach to conduct procurement. coordination in a decentralized context:
According to the findings of the study, there are Institutional, fiscal and governance issues.
no top management guides to the procurement Washington, DC: American University;
planning processes of VRA and top management 2003.
in the procurement planning does not help to 5. Organization Economy Corporation
plan very well to suit or benefit the VRA. Development-development assistance
commission. Methodology for assessment
The study further recommends that VRA should of national procurement systems. Paris,
integrate sustainability into their operations. The France: OECD; 2006.
concept of sustainability ensures that wastage is 6. Government Accountability Office.
avoided while efficiency becomes paramount to Framework for assessing the acquisition
companies. Integrating sustainability into VRA function at federal agencies (GAO-05-
has the capacity to create long-lasting 218G). Washington, DC: Author.
partnerships with the group of people they serve Government of Uganda (2006). The Local
and increase their profit margins. The general Government (Amendments) Act, 2006.
work ethics of employees should be embedded Kampala, Uganda: Author; 2005.
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will become the hallmark of VRA. The procurement and international trade. World
recommendation links to the finding that VRA Economy. 2000; 23(1):57-76.
does not have a sustainable procurement policy 8. Leni W, Victoria C, Maia K, Dan H.
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sustainable procurement practices are. problems in service delivery. Overseas
Development Institute. 111 Westminster
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adopt and integrate technology into their Available:www.odi.org.uk
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The Effect of Procurement Practices On Service Delivery: A Case Study of VRA, Ghana

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The Effect of Procurement Practices On Service Delivery: A Case Study of VRA, Ghana

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Asian Journal of Economics, Business and Accounting

13(1): 1-23, 2019; Article no.AJEBA.53090

The Effect of Procurement Practices on Service

Received 28 September 2019

*Corresponding author: E-mail: prof.anane@gmail.com;

Keywords: Procurement practices; procurement planning; procurement policy; sustainable

1. INTRODUCTION Consequently, this research work has identified a

of knowledge by filling the gap in empirical 2.2 Socio-economic Theory

to procurement processes, the introduction or determination of customer requirements,

Fig. 1. Proposed conceptual framework

researcher is engrossed in making a sweeping Management, Procurement department,

n= 241 The raw data acquired from the questionnaire

5.2 Job Designation/Department Procurement policy has been described herein

Fig. 2.. Respondents position at the company

Fig. 3. Job designation/department

Fig. 4. Electricity connectivity throughout Ghana to the general public

Table 1. Descriptive statistics on procurement policy

Table 2. Descriptive statistics on procurement planning

Table 3. Descriptive statistics on sustainable procurement

Table 4. Descriptive statistics on service delivery

Table 6. Results of regression

Model Unstandardized Standardized T- P- Collinearity

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