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Social value orientation and regulatory compliance in Ugandan public procurement

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  • Joseph Mpeera Ntayi
  • Pascal Ngoboka
  • Henry Mutebi
  • Gidah Sitenda
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    Abstract

    Purpose – The purpose of this paper is to examine the perceptions and effects of social value orientation, expected utility, fairness in procurement procedures, the legitimacy of the procurement law and the procurement law enforcement authority on compliance with the procurement law, guidelines, procedures and regulations. Empirical research in this area is relatively sparse. Design/methodology/approach – Data were collected from a sample of 110 Procurement and Disposing Entities (PDEs) and analysed using confirmatory factor analysis (CFA) and structural equation modelling (SEM). Findings – Results of the fit indices between the model and the observed data were generally good for both CFA and SEM. Results reveal that social value orientation, expected utility, legitimacy of the procurement law enforcement agency and perceptions of procedural justice were significant predictors of the Public Procurement and Disposal of Assets Authority (PPDA) regulatory agency. Research limitations/implications – This study however has several limitations which limit the interpretation of results. First, the data are cross sectional, thus limiting monitoring changes in behaviour over time. Second, all item scales adapted in this study were not specifically developed for a public procurement regulatory environment. This means that there is need to develop specific item scales for public procurement regulatory environments. Practical implications – The paper shows that the PPDA regulatory framework should revise its compliance instrument to consider social value orientation. Originality/value – This paper uses constructs of social value orientation, which are largely ignored in legislated professions to predict compliance.

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    Bibliographic Info

    Article provided by Emerald Group Publishing in its journal International Journal of Social Economics.

    Volume (Year): 11 (2012)
    Issue (Month): 11 (October)
    Pages: 900-920

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    Handle: RePEc:eme:ijsepp:v:39:y:2012:i:11:p:900-920

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    Related research

    Keywords: Compliance; Procedural justice; Public procurement; Social value orientation; Social values; Uganda; Utility;

    References

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    1. Joel Slemrod, 2007. "Cheating Ourselves: The Economics of Tax Evasion," Journal of Economic Perspectives, American Economic Association, vol. 21(1), pages 25-48, Winter.
    2. Simon Gachter & Ernst Fehr, 2000. "Cooperation and Punishment in Public Goods Experiments," American Economic Review, American Economic Association, vol. 90(4), pages 980-994, September.
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    7. Gary S. Becker, 1968. "Crime and Punishment: An Economic Approach," Journal of Political Economy, University of Chicago Press, vol. 76, pages 169.
    8. Baker, G.P. & Jensen, M.C. & Murphy, K.J., 1988. "Compensation And Incentives: Practice Vs. Theory," Papers 88-05, Rochester, Business - Managerial Economics Research Center.
    9. Ledyard Tucker & Charles Lewis, 1973. "A reliability coefficient for maximum likelihood factor analysis," Psychometrika, Springer, vol. 38(1), pages 1-10, March.
    10. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-91, March.
    11. Nina Mazar & Dan Ariely, 2006. "Dishonesty in everyday life and its policy implications," Working Papers 06-3, Federal Reserve Bank of Boston.
    12. Allingham, Michael G. & Sandmo, Agnar, 1972. "Income tax evasion: a theoretical analysis," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 323-338, November.
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