Transparency in procurement and operational efficiency in NGOs: multitheoretical analysis with a mixed approach in Ecuador

PurposeThis study aims to analyze the relationship between transparency in procurement processes and operational efficiency in non-governmental organizations (NGOs) in Ecuador. By applying a multi-theoretical framework and a mixed-methods approach, the research explores how transparency practices influence organizational performance, particularly in resource-constrained environments. The study seeks to provide empirical evidence to support policy and managerial decisions aimed at improving accountability and effectiveness in nonprofit operations.Design/methodology/approachA mixed-methods design was used to examine the relationship between procurement transparency and operational efficiency in Ecuadorian NGOs. The quantitative component involved analyzing survey data from 370 NGOs using descriptive statistics and linear regression analysis. The qualitative component consisted of semi-structured interviews with NGO stakeholders to gain insights into organizational practices and perceptions. The study is grounded in agency, stakeholder, stewardship and resource dependence theories, offering a robust theoretical lens. This triangulated approach ensures methodological rigor and contextual depth, aligning with the public procurement focus of developing economies.FindingsThe study finds a positive association between procurement transparency and operational efficiency in Ecuadorian NGOs. Quantitative analysis shows that NGOs with transparent procurement practices demonstrate higher efficiency in resource utilization and service delivery. Regression results highlight the influence of transparency on reducing administrative costs and enhancing stakeholder trust. Qualitative findings support the notion that donor expectations and internal governance mechanisms drive transparency efforts. However, smaller NGOs face challenges due to limited technical capacity. These results highlight the strategic importance of procurement transparency in enhancing NGO performance, particularly in contexts with limited institutional oversight.Research limitations/implicationsThe study is limited to NGOs operating in Ecuador, which may constrain the generalizability of findings to other Latin American contexts with different regulatory or institutional environments. In addition, while the mixed-methods approach provides valuable insights, self-reported data may be subject to bias. The qualitative component is context-specific and may not capture broader sectoral dynamics. Future research could expand to comparative studies across countries or include longitudinal data to assess causal relationships over time. Despite these limitations, the findings offer practical implications for improving procurement governance and efficiency in resource-constrained nonprofit settings.Practical implicationsThe findings suggest that enhancing transparency in procurement processes can significantly improve operational efficiency in NGOs, particularly in environments with limited oversight. Donors, NGO managers and policymakers should prioritize transparent procurement frameworks as a strategic tool to strengthen accountability and resource optimization. Training programs and simplified procurement protocols could help smaller NGOs overcome capacity limitations. The study underscores the need for integrating transparency mechanisms into organizational routines to foster trust, reduce costs and improve service delivery outcomes in the nonprofit sector.Social implicationsImproved procurement transparency in NGOs contributes to greater public trust and legitimacy, especially in communities affected by poverty and limited state presence. Transparent practices not only enhance service delivery but also empower beneficiaries by promoting accountability and participation. In the context of Ecuador, where NGOs often fill critical service gaps, strengthening procurement governance can lead to more equitable and efficient allocation of resources. These social benefits highlight the broader value of procurement reforms beyond administrative efficiency, reinforcing the role of NGOs as trusted actors in development and social cohesion.Originality/valueTo the best of the authors’ knowledge, this study offers one of the first empirical analyses linking procurement transparency to operational efficiency within NGOs in a developing country context. By applying a multi-theoretical framework and a mixed-methods approach, it provides a nuanced understanding of how transparency mechanisms affect organizational performance. The research bridges a gap in public procurement literature by focusing on the nonprofit sector, which is often overlooked despite its critical role in service delivery. The findings offer actionable insights for practitioners and policymakers seeking to improve governance, accountability and effectiveness in Latin American NGOs’ procurement processes.