Procurement Planning on Public Service Delivery in Local Governments: Evidence from a Structural Equation Modelling Analysis

Abstract

Purpose: This study examined the effect of procurement planning on public service delivery in local governments. Specifically, the study investigated the effect of needs identification, market assessment, and procurement scheduling on public service delivery. Methodology: The study adopted a quantitative research approach using a cross-sectional survey design. Primary data were collected from 181 respondents from selected local governments using a structured questionnaire. Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA) were employed to assess the validity and reliability of the measurement scales. Structural Equation Modelling (SEM) was subsequently performed using Onyx to test the hypothesized relationships among the study constructs. The measurement model demonstrated excellent goodness-of-fit statistics (CFI = 0.990, TLI = 0.985, RMSEA = 0.036, and SRMR = 0.054), confirming the adequacy of the model. Findings: The findings revealed that procurement planning has a significant positive effect on public service delivery in local governments. Specifically, needs identification had the strongest positive effect on public service delivery (β = 0.43, t = 4.82, p < 0.001), followed by procurement scheduling (β = 0.33, t = 3.95, p < 0.001) and market assessment (β = 0.21, t = 2.67, p = 0.008). These results indicate that strengthening procurement planning practices enhances the efficiency, quality, and timeliness of public service delivery. Unique Contribution to Theory, Practice and Policy: This study contributes to theory by extending the application of procurement planning theory within the context of local government service delivery through the use of Structural Equation Modelling. It contributes to practice by demonstrating that effective needs identification, comprehensive market assessment, and realistic procurement scheduling are critical drivers of improved public service delivery. From a policy perspective, the findings provide empirical evidence to support reforms aimed at strengthening procurement planning, institutionalizing comprehensive needs assessments, enhancing market intelligence systems, and enforcing compliance with procurement schedules to improve accountability, value for money, and sustainable public service delivery in local governments.