A Dissertation Submitted in Partial Fulfillment of the Requirements for Award
of the Degree of Master of Science in Procurement and Supply Chain
Management (MSc-PSCM) of Mzumbe University
The study aimed at assessing the influence of procurement risk management practices
on procurement performance in Tanzania at TANESCO, TPA and NHC Headquarters.
The specific objectives of this study were to examine the influence of procurement risk
identification practices on procurement performance, to determine the influence of
procurement risk mitigation practices on procurement performance, to assess the
influence of procurement risk monitoring practices on procurement performance and
to explore the influence of stakeholder’s involvement in procurement risk management
practice on procurement performance in Tanzania. The study used both qualitative and
quantitative research designs. Purposive sampling and simple random sampling
methods were used to select sample. The study used a sample size of 120 drawn from
the targeted population of 316. Primary data were collected using questionnaires and
structured interviews while secondary data was collected through documentary
review. Quantitative data were analyzed through descriptive analysis, factor analysis,
correlation analysis and multiple regression analysis with the help of Statistical
Package for Social Science (SPSS) version 22 while qualitative data were analyzed by
using content analysis. The findings relating to the first objective indicated a
significance relationship between procurement risk identification practices and
procurement performance at a significant level of P-value=0.012(P<0.05) and there
was relationship between procurement risk mitigation practices and procurement
performance at P-value=0.028(P<0.05), there was a significant relationship between
procurement monitoring practices and procurement performance at P-value= 0.000
(P<0.05). The findings also revealed a significant relationship between stakeholder’s
involvement in procurement risk management and procurement performance at Pvalue=0.013 (P<0.05). The study concluded that, procurement risk management
practices were statistically significant to procurement performance at significance
level of 0.000 (P<0.05). The study recommended that procuring entities like
TANESCO and TPA should establish best procurement risk management practices as
the tool of minimizing procurement risk in public sector. The study suggested among
others, a further study to be conducted on the factors influencing effective management
of procurement risks in Tanzania.