The The Influence of Spend Analysis Capabilities on the efficient Category Management Strategies in Public Entities A Mediating Effect of Procurement Budgeting

Abstract

Spend analysis is an approach of collecting and analyzing spend data that enables correct
decisions making in procurement budgeting and efficient category management strategies
development. The correctness of applying spend analysis relies greatly on the capabilities
that are available. Hence, the study evaluates the relationship that exists between spend
analysis capabilities and efficient category management strategies as mediated by
procurement budgeting. The study was conducted in the United Republic of Tanzania. The
study adopted a descriptive cross- sectional design to establish the relationship between
spend analysis capabilities and efficient category management strategies. The study analyzed
data collected by means of questionnaire from 135 public procurement practitioners using the
partial least squares approach to structural equation modelling. There was a significant
positive direct effect between individual capabilities and organizational capabilities on
efficient category management strategies. There was an insignificant indirect effect between
individual capabilities and efficient category management strategies while there was a
positive significant indirect effect between organizational capabilities and efficient category
management strategies. Building from affordance theory, the study determines that
capabilities of actors in form the of individual capabilities and organizational capabilities
predict the development of effective procurement budgets and efficient category management
strategies built from spend analysis produced data for decision making.