Effects of negotiation practices on public procurement performance in Tanzania: a case of national health insurance fund (nhif)-head office, Dodoma region

Abstract

This study evaluated the effect of effective negotiation practices on performance of public sector procurement. This study was carried out at the National Health Insurance Fund (NHIF). The results demonstrated that a negotiating plan is crucial for successful negotiations in improving public procurement performance, with a p-value of 0.000 (p< 0.005). With a p-value of 0.000 (p<0.005), the findings show a substantial and positive association between negotiating skills and successful negotiation for improving public procurement performance. The results showed that negotiation ethics lead to effective procurement negotiation, thereby improving in public procurement performance, with a p-value = 0.000 (p<0.005).The results indicated that negotiation plan, negotiation skills, and negotiation ethics have a major contribution to make as practices of effective negotiation lead to improvements in public procurement performance. The majority of respondents agreed that if there is a proper negotiation plan, a skilled negotiation team, and compliance with negotiation ethics, effective negotiation in procurement increases and hence improving public procurement performance operations. The study concluded that negotiation plan, negotiation skills, and negotiation ethics have a significant influence on the public procurement undertakings, with a significant value of 0.000 (P<0.05). The study recommended that organizations should ensure there is a proper negotiation plan within the organization, employ skilled staff, and enhance compliance with negotiation ethics during negotiation in order to improve public procurement performance.

Key words: Negotiation Practices, Public Procurement Performance, Tanzania.