THE EFFECT/INFLUENCE OF PROPOSAL DRAFTING PROCESS ON BIDDING SUCCESS. A CASE OF BRAC UGANDA
INTRODUCTION
The study investigated the effect/influence of proposal drafting process on bidding success. a case of BRAC Uganda. In this study, proposal drafting process is the independent variable and bidding success is the dependent variable. The key dimensions for proposal drafting process are; Solicited proposals, Unsolicited proposals., Preproposals, Continuation or non-competing proposals and Renewal or competing proposals, while bidding success will be measured by open or competitive bidding, and closed (“sealed”) or noncompetitive bidding.
This chapter presents the background of the study, the problem statement, purpose, objectives of the study, research questions, study scope, justification of the study, significance, hypotheses, conceptual framework, as well as operational definition of key terms and concepts.
The section presents, historical background, theoretical, contextual background, conceptual background.
1.1.1 Historical Background
The practice of bidding, or offering a price for goods or services, dates back to ancient civilizations. In ancient Rome, for example, government contracts were awarded through a bidding process. The concept of auction, a specific form of bidding, can be traced back to ancient civilizations as well, with evidence of auctions of goods and slaves in Greece and Rome. In the Middle Ages, auctions were used to sell seized goods, such as the property of criminals. During the 18th century, the auction system began to be used more widely for the sale of goods and property. The modern auction system as we know it today, in which an auctioneer calls out prices and bidders indicate their willingness to pay by raising their hand or bidding card, was developed in the 19th century (McGillivray, & Turner, 2017).
The history of bidding in England can be traced back to ancient times, with evidence of auctions being used to sell goods and property. However, the use of auctions in England as we know them today began to develop during the 18th century. Auction houses, such as Christie’s and Sotheby’s, were established in London during this time and became popular venues for the sale of art, antiques, and other high-value items. Auctions also played a significant role in the sale of land and properties, particularly during the 18th and 19th centuries, as the enclosure movement led to the consolidation of land ownership (O’Brien, & Miles, 2019). In the 20th century, the use of auctions expanded to include a wider range of goods and services, such as cars, machinery, and government contracts. Today, auctions are a common method for buying and selling a wide variety of items in England and around the world (Lynn, 2018).
Bidding in the United States has a long history, dating back to the colonial period. Auctions were used to sell a variety of goods and services, including land, livestock, and household items. During the 19th century, auctions continued to play a significant role in the economy, with the sale of land and properties being one of the most common uses of auctions (Helo, 2020). In the 20th century, the use of auctions expanded to include a wider range of goods and services, such as cars, machinery, and government contracts. Today, auctions are a common method for buying and selling a wide variety of items in the United States, including real estate, art, antiques, and collectibles. The Federal government also use auction to sell off seized assets, surplus goods, and even spectrum licenses. Electronic auctions and online bidding platforms have become increasingly popular in recent years, allowing for a wider range of buyers and sellers to participate in auctions (Baade, & Sanderson, 2022).
The proposal drafting process can have a significant impact on the success of a bidding process. A well-crafted proposal that clearly and effectively communicates the benefits of the proposed solution and demonstrates the qualifications of the organization can increase the chances of winning the bid. On the other hand, a poorly written or incomplete proposal can decrease the likelihood of success. Additionally, adhering to the requirements and guidelines provided by the organization issuing the bid can also be important for success (Politou et al., 2018).
The history of bidding in Africa is complex and varies by country and region. However, some key historical events and trends can be identified. In the colonial era, European powers established systems of procurement that were often exploitative and designed to extract resources from the continent. In many cases, these systems were used to extract resources from the continent without providing fair compensation to local communities or businesses (Lovett et al., 2020).
After independence, many African countries implemented procurement systems that were based on centralized planning and state control. These systems often focused on large-scale infrastructure projects, such as roads and dams, and were often characterized by a lack of transparency and competition. In recent years, many African countries have begun to reform their procurement systems to promote greater transparency and competition. Some countries have implemented laws and regulations to increase the participation of small and medium-sized businesses in procurement, and to ensure that procurement is conducted in a fair and transparent manner (Rasmussen et al., 2018).
However, the bidding system in Africa is still facing challenges like corruption and lack of transparency, which affects the process of bidding. In addition, the procurement process is often slow and bureaucratic, which can deter private sector participation, the history of bidding in Africa reflects the broader history of the continent, characterized by exploitation during the colonial era, state-controlled systems during the post-colonial era, and ongoing efforts to promote transparency and competition in recent years (Shai, Molefinyana, & Quinot, 2019).
The history of bidding in Uganda is closely tied to the country’s political and economic development. During the colonial era, procurement in Uganda was conducted by the British government, which established systems that were designed to extract resources from the colony. After Uganda gained independence in 1962, the government implemented a system of centralized planning and state control, which was characterized by a lack of transparency and competition in procurement (Rogerson, & Rogerson, 2019). In the 1980s, the country was affected by a long civil war, political instability, and economic decline. This made it difficult to carry out procurement in a fair and transparent manner. In the 1990s, the Ugandan government began implementing economic reforms, including the liberalization of the economy, the privatization of state-owned enterprises and the introduction of market-oriented policies. These changes led to the establishment of a more open and competitive procurement system (Harland et al., 2019).
In 2002, the Ugandan government passed the Public Procurement and Disposal of Public Assets Act, which established a legal framework for procurement in the country. The act was intended to increase transparency, efficiency and fairness in the procurement process. However, the procurement system in Uganda is still facing challenges like corruption and lack of transparency. The government and other organizations have been implementing various initiatives to address these issues and ensure that procurement is conducted in a fair and transparent manner (Eyaa, & Oluka, 2011).
The history of bidding in Uganda reflects the broader history of the country, characterized by exploitation during the colonial era, state-controlled systems during the post-colonial era, economic decline and political instability during the civil war, economic reform and the liberalization of the economy, and ongoing efforts to promote transparency and competition in recent years.
1.1.2 Theoretical background
In 1971, three petroleum engineers working for Atlantic Richfield looked over the records of various oil companies after realizing that oil companies were suffering unexpectedly low returns on their investments yearly. Edward Capen, Robert Clapp, and William Campbell examined the low returns that occurred as a result of the Outer Continental Shelf oil lease auctions. In particular, they noticed that companies bidding on oil in the Gulf of Mexico an area that had a lot of oil and gas at this time were making peculiarly low returns. Since the area was dense with oil and gas, companies should have been able to buy oil at a relatively low price and sell it for a good profit.8
The petroleum engineers speculated that it was because of the competitive bidding environment that businesses were failing to make the return they expected. They believed that bidders did not have sufficient knowledge of the laws of probability to make rational informed decisions, and instead were being swayed by the bids of other oil companies.
The value of oil in the ground should have a similar value for all bidders, yet, when it is auctioned off, bidders must fight to outbid their competitors. This is partially because there was no method to estimate the potential value of an oil field, so bidders had to rely on intuition. However, in high-pressure situations, intuition can veer from rationality, like an auction.
The method in which an auction is set up ensures the winner has to be an individual who is willing to pay more than everyone else so, unfortunately, the winner is doomed to pay more than the oil’s inherent value. After investigating this common occurrence in oil bids, Capen, Clapp and Campbell coined the term “winner’s curse” to describe this phenomenon in their article “Competitive Bidding in High-Risk Situations.” They came up with three rules for people to avoid the winner’s curse:
- The less information one has compared with what his opponents have, the lower one ought to bid.
- The more uncertain one is about his value estimate, the lower one should bid.
- The more bidders (above three) that show up on a given parcel, the lower one should bid.8
These rules suggest that, unless bidders are well-informed and able to rationally calculate the inherent value of an oil field, they should be conservative with their bids.
Following the petroleum engineers’ investigation and discovery of the winner’s curse, professors of management Max H. Bazerman and William F. Samuelson, who specialized in negotiating and bidding, ran experiments to test its validity. They published a paper in 1983 titled “I Won the Auction but Don’t Want the Prize.” 9 Similarly to Capen, Clapp, and Campbell, Bazerman and Samuelson hypothesized that the reason the winner’s curse occurs is because a relevant piece of information is excluded from the decision-making processes of bidders — if an individual assumes that their bid will win, they should realize that they have overestimated the value of a commodity and revise their bid. However, it is hard to know whether or not your bid will be successful unless you know the other bids before you make yours.
Bazerman and Samuelson identified two factors that increase the likelihood of the winner’s curse: the degree of uncertainty and the size of the bidding population. The more uncertain people are about the inherent value of an item and the bigger the bidding pool, the more likely the winner’s curse is to occur. To test their theory, the researchers recruited MBA students to participate in four sealed-bid auctions. All commodities had a value of $8, and participants were told that they would receive a $2 prize if they had the bid closest to the inherent value of the item, so as to encourage reasonable bids.
Bazerman and Samuelson found that despite the incentive, the highest bids often exceeded the inherent value of an item. Subjects employed naive bidding strategies, even in a sealed bid situation. They also found that as predicted, increasing the degree of uncertainty (if the item was unfamiliar) and the bidding population size (the number of bidders) caused the winner’s curse to happen more frequently. Participants actually estimated the value of the items to be lower than their objective value, with the average bid being $5.13, but the mean winning bid was $10.01.10
In 2020, economists Paul R. Milgrom and Robert B. Wilson, won a Nobel Prize for their work on auction theory. They began researching the winner’s curse in 1982, but continued to research the phenomenon and more recently developed an explanation as to why rational bidders place maximum bids below the expected value of the commodity: because they are afraid of the winner’s curse. This theory will enable this study understand the challenges in winning bids despite the project proposal drafting by some organization.
1.1.3 Conceptual Background
Bidding refers to the process of offering a price for goods or services. It is most commonly associated with the auction process, in which potential buyers indicate their willingness to pay a certain price for an item by raising their hand, calling out a price, or placing a bid online. The highest bidder typically wins the auction and is obligated to purchase the item at the price they have bid. Bidding can also refer to the process of offering a price for a contract, such as a construction or government project. In these cases, bidders may submit sealed bids, with the contract being awarded to the bidder who has offered the best terms and the lowest price. Bidding is also used in financial markets, for example, in stock market, where traders bid for shares at a certain price. In general, bidding is a way for buyers and sellers to negotiate a price for goods or services through the process of competition (San Santoso, & Bourpanus, 2018).
A proposal is a document that presents a plan or suggestion for a particular project, product, or service. It is generally used in business and government settings to persuade a potential client or funding agency to accept a certain idea or to provide financial support for a project. Proposals can be formal or informal, and may be solicited or unsolicited (de Frutos-Belizón et al., 2019).
A solicited proposal is one that is requested by a potential client or funding agency, usually in response to a request for proposal (RFP) or request for quotation (RFQ). These types of proposals typically include detailed information about the proposed project or product, including technical specifications, timelines, and cost estimates (Tonetti, Greenwell, & Kornman, 2018).
An unsolicited proposal is one that is created and submitted by a company or individual without a specific request from a client or funding agency. These types of proposals are usually used to introduce a new idea or product to a potential client or funding agency, and may include information on the company’s qualifications, market research, and a detailed business plan (Ben-Chetrit et al., 2018).
In general, a proposal is a means of communicating an idea or plan and providing evidence to support its feasibility, and it is often used to persuade decision-makers to adopt it.
According to the Indian Contract Act 1872, proposal is defined in Section 2 (a) as “when one person will signify to another person his willingness to do or not do something (abstain) with a view to obtain the assent of such person to such an act or abstinence, he is said to make a proposal or an offer.”
1.1.4 Contextual Background
Bidding is a common process in global trade, as it allows buyers and sellers to negotiate prices and terms for goods and services. Bids can be submitted through a variety of channels, including online platforms, email, or fax.
In global trade, public procurement, also known as government procurement, is one of the most common types of bidding process. It’s a process by which government agencies purchase goods, services, and works from private sector companies. Governments around the world use public procurement as a way to buy goods and services, and the process is often open to bids from domestic and international suppliers (Basheka, 2017).
Another common type of bidding in global trade is through tenders. Tenders are used to invite suppliers to submit bids for the supply of goods and services. Tenders are often used by large organizations such as government agencies, international organizations and large companies to purchase goods and services.
Bidding in global trade also happens through online platforms, such as e-auctions. These platforms allow suppliers from around the world to participate in auctions for contracts and purchase orders. E-auctions are often used to purchase goods in large quantities, such as raw materials and components, bidding is a common process in global trade, it is used to negotiate prices and terms for goods and services, through procurement, tenders, and e-auctions.
The total value of public bids in the United States can vary depending on the specific time period and type of goods or services being procured. However, public procurement is a significant aspect of the economy and the value of public bids is likely to be in the billions of dollars. In the US, procurement at the federal level is governed by the Federal Acquisition Regulation (FAR) and state and local governments have their own procurement regulations. Federal procurement alone is estimated to be around $500 billion per year. In addition, State and local government procurement are estimated to be in the hundreds of billions of dollars per year. However, it’s worth noting that these figures are estimates and can fluctuate based on the economic conditions and government spending priorities. Additionally, the COVID-19 pandemic and the subsequent economic downturn may have impacted the total value of public bids in 2020 and 2021 (Jin, Tang, Chau, & Abbas, 2022).
The Ugandan government is the largest buyer of goods and services in the country, and spends a significant amount of money on procurement each year. The specific value of bids in Uganda can vary depending on the current economic conditions and the types of goods and services being procured. However, it’s worth noting that Uganda is still facing challenges like corruption and lack of transparency in the procurement process which may affect the total value of bids. The government and other organizations are implementing various initiatives to address these issues and ensure that public procurement is conducted in a fair and transparent manner. In addition, the COVID-19 pandemic and the subsequent economic downturn may have impacted the total value of public bids in 2020 and 2021 (Mawejje, & Odhiambo, 2022).
1.2 Statement of the problem
The complexity and volume of bidding has drastically increased globally in the recent years. Some of the causes that can be attributed to this include globalization, out sourcing, intense competition for existing markets as well as complicated and numerous partnership. Over the last fifty years, the world’s largest firms have advanced from being simple manufactures of hard goods, or providers of basic services, to being sophisticated vendors using advanced business models. This means that commitment of customers and suppliers to contractual obligations has increased, thus, the need for sustainable project proposal drafting. In the same respect BRAC Uganda has been failing to win bids despite the number of project proposals it has written it is therefore in this view that this study intends to investigate into the effect/influence of proposal drafting process on bidding success, with specific reference to BRAC Uganda.
1.3 Purpose of the study
The purpose of study if to investigate the influence of proposal drafting process on bidding success
1.4 Objectives of the study
- To establish the influence of unsolicited proposal on bidding success
- To investigate the influence of solicited bids on bidding success
- To analyze influence of non-competing proposals on bidding success
1.5 Research Questions
- What is the influence of unsolicited proposal on bidding success?
- What is the influence of solicited bids on bidding success?
- What is influence of non-competing proposals on bidding success?
1.6 Scope of the study
This section includes content scope, geographical scope and Time scope.
The content scope of the study will concentrate on; the influence of unsolicited proposal on bidding success, the influence of solicited bids on bidding success and influence of non-competing proposals on bidding success.
1.6.2 The geographical scope
The study will be carried out from BRAC Uganda located at; Plot 880 Heritage Drive, Kampala, Uganda.
1.6.3 Time scope
The period of data to be considered from BRAC Uganda will be from 2017 to 2022.
1.7 Significance of the study
The study will provide information to future researchers concerning the influence of unsolicited proposal on bidding success.
The future academicians will be able to have information regarding the influence of solicited bids on bidding success.
The study will also provide literature on the influence of non-competing proposals on bidding success
1.8 Conceptual frame work
Independent variables Dependent variables
Moderating variables
CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This section presents the literature review of the study inline to the writing of other scholars;
2.1 Solicited proposals
A solicited proposal is a formal document that is submitted to a potential client or customer in response to a specific request or invitation. These types of proposals are typically more focused and targeted than unsolicited proposals, as they are tailored to meet the specific needs and requirements outlined by the client. To create a solicited proposal, it is important to carefully review and understand the client’s requirements and expectations. This may involve conducting research or speaking directly with the client to clarify any questions or concerns. The proposal itself should be well-organized and clearly written, with a strong emphasis on demonstrating the value and benefits of your proposed solution. It should also include a detailed description of your qualifications, experience, and any relevant credentials or certifications, Additionally, you may want to include testimonials or case studies that showcase your previous successes and highlight your ability to deliver results. Finally, be sure to provide a clear and compelling call-to-action that encourages the client to move forward with your proposal, winning a solicited proposal requires a combination of careful planning, thorough research, and effective communication. Here are some key tips to help you increase your chances of success (Castelblanco, & Guevara, 2020).
When designing unsolicited proposal it better to understand the client’s needs and goals, The first step to winning a solicited proposal is to thoroughly understand the client’s requirements and expectations. Take the time to review the request for proposal (RFP) or other documentation provided by the client, and ask questions to clarify any points that are unclear. Tailor the proposal to the client: the proposal should be tailored specifically to meet the client’s needs and goals. It is imperative to use language and terminology that is familiar to the client, and provide examples and case studies that demonstrate the understanding of their industry and challenges (Yun et al., 2015).
Showcase the expertise and experience: the proposal should highlight the qualifications, experience, and any relevant credentials or certifications. Provide specific examples of similar projects you have completed, and emphasize the track record of delivering results, demonstrate value, the proposal should clearly demonstrate the value of the proposed solution, and explain how it will address the client’s needs and goals. Use data and metrics to support the claims, and provide a clear cost-benefit analysis that shows the client the return on their investment, Follow the submission guidelines: Make sure to carefully review the submission guidelines provided by the client, and follow them closely. This includes formatting requirements, submission deadlines, and any other specific instructions and Proofread and edit carefully: the proposal should be well-written and free of errors. Take the time to proofread and edit the proposal carefully, and ask a colleague or friend to review it as well (Doubleday, 2018).
Solicited proposals offer a clear set of requirements and expectations, they can still present a number of challenges. Here are some of the most common challenges with solicited proposals: Limited information: The information provided by the client in a solicitation may be limited, which can make it difficult to fully understand their needs and goals. This can lead to misunderstandings or miscommunications during the proposal process. Competitive environment: Solicited proposals are often competitive, with multiple vendors submitting proposals for the same project or opportunity. This can make it challenging to differentiate your proposal and stand out from the competition. Short deadlines: Solicited proposals typically have tight deadlines, which can make it challenging to gather the necessary information and complete the proposal in a timely manner. Compliance requirements: Many solicitations include strict compliance requirements, such as specific formatting or submission guidelines. Failing to meet these requirements can result in disqualification from the proposal process, Price pressure: In many cases, price is a key factor in the evaluation of solicited proposals. This can put pressure on vendors to submit low bids or sacrifice quality in order to win the contract and Changing requirements: The client’s requirements may change during the proposal process, which can require vendors to adapt their proposals accordingly. This can be challenging if the changes are significant or if the proposal is already in progress (Zhongming et al., 2018).
Public-Private Partnership (PPP) projects are proposed by public agencies and are procured through a structured public-planning process, which often involves a competitive tendering process (World Bank 2017a). To overcome the government’s lack of capacity to identify, prioritize, prepare and procure projects, some countries accept and allow unsolicited proposals (USPs) for the development of PPP projects motivated by different reasons (Yun et al. 2015). In this context, the PPP USP method is defined as a PPP approach in which a private investor identifies and proposes a public project to a public agency without any formal invitation (World Bank 2017b). A PPP project is typically initiated through a solicited or an unsolicited proposal, depending on who develops the proposal and initiates the project. Solicited proposals (SPs) are developed by the public sector when a project is required to be initiated in accordance with a government’s infrastructure development plan, but they require the participation of the private sector because of financial constraints on the government (AECOM Consult Team 2007; Yun et al. 2015). In SPs, the public sector has initially planned and led the implementation of a PPP project. In contrast, USPs are initiated by private sector organizations seeking business opportunities (OseiKyei et al. 2018). USPs are not formally included in the government’s infrastructure development plan but are viable through the PPP scheme (Yun et al. 2015).
Risk management is one of the topics that exemplifies the contrasting differences in respect to research evidence between SPs and USPs. Although appropriate risk management strategies are required to implement both SPs and USPs, no robust evidence exists to properly examine the differences between these two PPP procurement methodologies. Also, it remains unclear how the differences between SPs and USPs impact PPP project performance.
PPP procurement processes play a key role in PPP development because it is very important to select an appropriate private partner to lead a PPP project. However, tendering processes can be significantly different depending on whether projects are SPs or USPs. The differences between these tendering methodologies often lead to various levels of interaction between public and private counterparties (AECOM Consult Team 2007; Kwak et al. 2009; Yun et al. 2015).
Despite the clear differences between SPs and USPs procurement processes, the distinctions between these two tendering methodologies have not received sufficient attention. In comparison to studies exploring solicited processes, the academic evidence focused on USPs is scarce. However, some scholars have analyzed the differences between these two methodologies by examining multiple case studies (Marques 2018), management strategies (Osei-Kyei et al. 2018), and organizational success factors (Yun et al. 2015).
The project selection criteria also differed between solicited and unsolicited projects. A candidate for a solicited project can be selected from among the infrastructure facilities that are defined in the PPP Act. The candidate project should be in accordance with the priority of the investment associated with the national infrastructure development plan and meet the requirements of the PPP initiatives (MOSF 2009). In contrast, a candidate for an unsolicited project can be selected from among infrastructure facilities that are not determined by the government but are viable through the PPP scheme. The candidate projects should satisfy economic feasibility, and it needs to be verified whether the PPP procurement can reduce the financial burden of the government more effectively than traditional procurement (MOSF 2009). In addition, the government provides financial support differently in solicited and unsolicited projects. In particular, the minimum revenue guarantee (MRG) has been considered as one of the most important financial supports offered by the government in many countries, including Korea, and it uses the PPP scheme as an alternative procurement method for infrastructure development. The MRG has played a critical role in reducing exposure to the demand risks of the concessionaire by compensating the concessionaire if operational revenue falls below a specified minimum (Ashuri et al. 2010; Huang, Chou 2006).
These distinctions between solicited and unsolicited projects lead to different levels of roles and involvement of the public and private sectors in the initiation and development of a PPP project in terms of the government’s roles and supports, the roles and responsibilities of project participants, and risk sharing between the public and private sectors. 1.2. Critical organizational success factors for PPP projects Numerous studies have been conducted to identify what factors critically influence the success of PPP projects since the PPP scheme has been adopted worldwide (Chan et al. 2010; Cheung et al. 2012; Jamali 2004; Jefferies 2006; Li et al. 2005; Ng et al. 2012; Tiong 1996; Zhang 2005b). Most studies have focused primarily on which critical success factors (CSFs) significantly affect PPP project success in general, regardless of differences between solicited and unsolicited proposals. Among the CSFs in previous studies, the roles and involvement of project participants can be divided into the two categories of public and private sectors. The project stakeholders in the public sector who participate in the development and implementation of a PPP project are competent government authorities, local governments, relevant government-funded corporations and institutes, and non-profit organizations. The project stakeholders play critical roles in the development and implementation of a PPP project, and their roles and involvement can influence project success (El-Gohary et al. 2006). Among them, the government authority, a leading public organization implementing a PPP project, is one of the key players in this process. Therefore, numerous studies have attempted to establish the roles and involvement of the government in the development and implementation of a PPP project. The roles and involvement of the government recognized as CSFs in the previous studies are: contractual guarantee (Tiong 1996); government support (Zhang 2005); commitment and adequate resourcing of projects by awarding authorities (Dixon et al. 2005); government involvement by provision of guarantees (Chan et al. 2010; Li et al. 2005); and government sponsorship, guarantee and tax reduction (Yuan et al. 2010).
2.1.2 Unsolicited proposals
Since the late 1990s, governments worldwide have increasingly engaged the private sector to assist in developing sustainable and modernized public infrastructure/service (Wibowo and Alfen 2014; Hodge 2003). In this regard, the number of public–private partnership (PPP) projects has substantially increased over the years, particularly in low- and middle-income countries (World Bank 2015). The World Bank’s Private Participation in Infrastructure (PPI) Database indicates that over US$850 billion new investments were recorded between 1990 and 2005 in developing countries (Hodges and Dellacha 2007). Furthermore, China, India, Brazil, and South Africa are among the leading developing nations with a rapid increase in PPP investments (Osei-Kyei and Chan 2017).
In the developed region, the United Kingdom, Australia, United States, and Canada have continuously attracted a large number of private investments in their PPP markets. Specifically, over 63 billion Canadian dollars’ worth of PPP investments has been implemented in Canada as of 2012 (CCPPP 2013), whereas over 500 PPP projects are in operations in the United Kingdom (Yescombe 2011). Also, PPP investments estimated over US$54 billion have been implemented in the U.S. transport sector (Reinhardt 2011; Osei-Kyei and Chan 2017). Clearly, the PPP concept has offered governments the opportunity to bridge their huge infrastructure gaps as well as meet the growing infrastructure demand (Chou et al. 2012).
Traditionally, PPP projects are initiated by governments/public agencies and are procured through a structured public-planning process that often involves a competitive tendering process (World Bank 2017a). An alternative to this traditional method is the use of an unsolicited proposal. The unsolicited PPP proposal method is defined as an approach for implementing PPP projects, in which a private investor identifies and proposes a public project/concept to a public entity/department without any formal invitation (World Bank 2017b). Essentially, an unsolicited PPP proposal could either be subjected to an open competitive tendering process or directly negotiated with the original private proponent; however, the latter approach is what is often used by many governments globally (Zawawi et al. 2016; Abdel Aziz and Nabavi 2014). In recent years, the adoption of unsolicited PPP proposals has increased tremendously in both developing and developed countries (PPIAF 2009). Public–Private Infrastructure Advisory Facility (PPIAF 2014) reported that over 83% of the 17 countries they reviewed in their study allow the use of unsolicited proposals for PPP project implementation. In addition, approximately 30% of projects recorded in the World Bank’s PPI database are unsolicited (Neves and Kim 2017).
Management is very vital and key in the running of the government institutions. Top management commitment have a major influence on the adoption of e-procurement as discussed by (Gori et al., 2017). Management readiness is an important driver for increasing e-procurement adoption and implementation in local governments.
Flynn and Davis (2016) indicates that The decision to adopt E-procurement in organization is normally made by management at the top of the Hierarchy, this to some extend has a down side as managers patronizing the attitude towards employees may prevent innovativeness and creativity amongst them or adoption of a change in idea for example shifting the organizational process from Manual procurement to Electronic procurement systems and this could be beneficial to the organization as a whole.
Barahona et al., (2015) indicates that E-procurement adoption into an organization faces challenges since most organization are not ready for technological change and further notes that E-procurement brings change in an organization that requires organizational managers to adopt change management strategies towards making the transformation process success.
Keramati et al., (2018) notes that one way organization change is possible is only if the top management team structures identifies the department in the organization that are responsible for change management and thereafter they assess. Most of the E-procurement initiatives are driven by top management.
The Chief Executive Officers (CEO) should be directly involved in the early stages of the process. Managerial commitment towards e-procurement adoption has also been discussed by scholars concerning the style of leadership adopted by many managers.
Dukić et al. (2017) acknowledges that almost all managers in the Sub-Saharan, emphasize on bureaucratic practices with total reliance on rules and regulations that workers obey without questioning or offering constructive criticism and on the same note Sorte Junior, (2016) indicates that Managers patronizing attitude towards employees may hinder them from being innovative or adoptive to a change idea such as shifting from manual procurement system to Electronic procurement system that may have an a astronomical benefit to the organization in the long run.
On the assessment of the factors affecting Implementation of Electronic Procurement systems in Kenya state corporations with in the ministry of finance , Wanjiru Muhia and Ofunya Afande (2015) Indicated that limited Employee competence is a challenge to the smooth adoption of Electronic procurement in the government institutions and on another note the inadequate legal framework also hinders e-procurement adoption. Chebii (2016) assessed the determinants of successful implementation of e-procurement in Kenya using the multiple regression technique.
Like any other technological change, e-procurement brings change in an organization that requires organizational managers to adopt change management strategies towards making the transformation process successful (Procurement Action Plan 2005). One way in which managers in organizations can reveal commitment to change is to have change management team structures that identifies who was doing the change management work (Hasan, 2014).
Wirtz and Daiser (2018) assert that change management structures Indicate the relationship between the project team and the change management team, the authors further assert that most frequent team structures include: – change management being a responsibility assigned to one of the project team members or an external change management team supporting a project team. The key in developing the strategy is to be specific and make an informed decision when assigning the change management responsibility and resources Organization for Economic Cooperation and Development (2009).
Most of the global scholars have questioned the commitment of management towards E-procurement Implementation and more to that the styles of leadership that is used by the managers also possess questions.
Mayer and Louw (2011) state that Majority of the organizations in sub-Saharan Africa face a challenge of adoption of Electronic procurement systems in their organization due to limited commitment and Bureaucracy in the systems and they further indicate that due to societal expectations which emphasizes bureaucratic practices and the total reliance on rules and regulations, employees obey without questioning or giving constructive criticism and this to some extend is a down side to the adoption of Electronic Procurement (Svärd, 2014).
On the analysis of Cameroon public service institutions it has been revealed that through the culture which emphasizes a rigid hierarchical relationships, the adoption of any change in the systems it mostly highly avoided by the Top management in the Hierachy and they also tend to keep the status quo Ndongko, (2005) and further asserts that managers who were seen by workers to be democratic in their techniques of management and such exerted low control over them elicited higher levels of adopting new changes within the organization compared to authoritarian ones.
Howell (2005) in analysis of Liberian workers and Greenhouse (2007) indicated that a considerable similarity exist in the work goals of employees around the world and that national differences regarding job related objectives were not as great as people thought and more to that Implementation of e-procurement which is at time associated with change might require managers to commit themselves in realizing the importance of their employees in making the adoption a success.
2.1.3 Non-competing proposals
Any organization’s success relies on sound financial management. Due to liquidity problems, public projects are either delayed or not implemented as anticipated. Business and people without internet access may not participate in the processes of e-procurement (Njihia, 2013). There have been challenges with e-procurement system malfunctioning to a case that National and County Governments cannot literally pay the suppliers bills, creating problems for the firms and in the process causing a confidence crisis. There are infrastructure issues too required to support electronic procurement. This is a pushback against the anti-corruption aspect of the system. E-procurement is a solution of technology which enhances corporate buying by use of the internet (Jain & Bandyopadhayay, 2018). Eadie, Perera, Heaney and Carlisle (2017) indicate that e-procurement symbolizes an effective and vital development in the e-business employment in chain management of supply, note that an organization which uses e-procurement benefits from reduction of price in tendering, reduction of time in sourcing of materials, lower costs of administration, procurement staff reduction as well as communication improvement. Adoption of e-procurement is constructed to include e-tendering e-sourcing, e-ordering and e-informing.
As a major strategy in the development of initiatives and different programs of electronic procurement, contributing additional opportunities for business industry, leading to an economy that is globally competitive and assisting in securing an economic growth that is sustained (Lou & Alshawi, 2009). Vaidya, Sajeez and Callender (2016) observe that the primary benefit government agencies pursue to obtain adopting e-tendering is to lower the price of business doing and service delivery which are a bit community efficient. Vaidya, Sajeez and Callender (2016) further indicate that the gains from introduction of system of e-tendering in government sector is to bring value for money of tax payers, high effectiveness and efficiency, practice of consistent tendering all over government, enhances general initiative of e-commerce; as well as environmentally as a result of chiefly ‘paperless’ process.
Use of internet in decision making strategies concerns where and how products and services are sourced (Farrington & Lysons, 2012). Barbara and Maxfield (2013) observed that, keeping pace with competition and delivering against strategic objectives procurement have to use state-of -the art technologies entailing e-sourcing. E-sourcing is a great and fast growing component where it requires various forms from sell-side and buy-side e-catalogs to post specifications and solicitation of bids whereby sellers as well as buyers come together to trade.
During the sourcing of items, many transactions that are of low value are performed, raising the effectiveness of the transactions of procurement to become valuable. Jahanshahi, Rezaei, Nawaser and Pitamber (2012), explains that the process of making and approving requisition of purchasing, placement of purchase orders and reception of services and goods that are ordered, by use of a system of software that is based on the technology of the internet improves greatly the performance of the supply chain. In e-ordering case, the services and goods which are ordered are indirect services and goods, that is, services and goods that are non-product related. Kim (2017), states that e-ordering improves greatly the performance of the supply chain because the placement of purchasing orders and reception of services and goods are ordered is enabled by using the technology of the internet.
Stone Braker (2006), observe that e-informing is a type of Enterprise Resource Planning (ERP) which is not associated directly with any stage in the process of purchasing such as ordering or contracting. E-informing means the gathering as well as the distribution process of the information of purchasing both to and from external and internal parties, by use of internet technology. Making sure that shared information quality has turned out to be an effective idea of the management of the supply chain. Croom and Johnston (2013), states that E-informing makes sure that quality together with accuracy, adequacy, criticality, timeliness and credibility improving performance of supply chain that is more noticeable.
CHAPTER THREE
METHODOLOGY
3.0 Introduction
This chapter presents a detailed description of the methodology that will be employed in the study. It will focus on the adopted research design, the population, sampling strategies, data collection methods, research procedure, ethical considerations, validity and reliability of research instruments, and methods of data collection.
3.1 Research Design
The research will adopt descriptive cross sectional survey design. According to Amin (2005), this is one of the most commonly used research method used to gather data from a sample population at a particular time. Opedun (2013) says that this design helps to define better and understand respondents’ opinions and attitudes when gathering information from a sample population at a particular time. The researcher will use the sample survey design because it is also less expensive way of gathering data from the large number of respondents who will be involved in this study. In this study, both quantitative and qualitative techniques will be employed in data collection process, analysis, presentation and discussion of findings. Quantitative method will be used in order to establish the extent and rate of the problem while qualitative shall fill the gaps that will be left by quantitative data
3.2 Study Population
Population refers to an entire group of individuals, events, or objects having a common observable characteristic as Mugenda and Mugenda (2003) posit. The population of the study will comprise of clients, executive committee members, and heads of department, team leaders and organization staff.
3.3 Area of the study
The study the research study will be carried out in BRAC head Office, Kampala District. The area will be chosen because of its proximity to the researcher and accessibility to the researcher within the study area. The study will be conducted within the proposed budgetary planned time frame and will focus particularly on organizational staff.
3.4 Sampling procedure
The study will basically focus on top and middle level management members because they are the ones who take the necessary decisions that affect the performance of the organization.
Accordingly, all departmental heads will be targeted as respondents however; greater importance will be laid on capturing members of executive committee.
The researcher therefore will use purposive sampling techniques in selecting interviewees with a choice of replacing those who may not wish to react to the Researcher’s request.
Purposive sampling is where the Researcher deliberately decides who to include in the sample. It will be used simply because the study will target basically custodians of the organizations. It will also ensure that only people with good knowledge on the subject matter are chosen.
3.4 .1 Sample Size and composition
A sample size is the portion representing the population and selection involves the process of choosing the elements from the population Amin, (2005). Given that the study population is large, a sample size will be selected from the population and used to represent the views of the entire population. Asample size of 80 respondents will be chosen from a total population of 100.
3.5 Data collection methods
The section presents data collection methods which include questionnaire survey, interview and documentary review.
3.5.1Questionnaire Survey
Questionnaire Survey method will be used to obtain the opinion of the respondents regarding the topic under study, according to (Onen & onen, 2013) states that questionnaires are important in research because the respondents are given time to think and they don’t feel intimidated. Questionnaire gives the respondents ample time to respond to the questions when ready and they can be kept for future references. This method will be deployed for middle level managers.
3.5.2 Interview
Face-to-face interview is a data collection method when the interviewer directly communicates with the respondent in accordance with the prepared questionnaire (Polak & Green, 2015).
This method enables to acquire factual information, consumer evaluations, attitudes, preferences and other information coming out during the conversation with the respondent. Thus, face-to-face interview method ensures the quality of the obtained data and increases the response rate.
Interviews will be used because they will fetch a variety of ideas needed for the study and gives a deeper understanding of the topic.
3.5.3 Documentary review
This will be used to supplement the data that is required from the interviews and questionnaires. The researcher will analyze the documents and publications related to the study topic. Documents that are expected to be reviewed include BRAC Company reports, Journals, and Newspapers.
3.6 Data collection instruments
For each deployed data collection method, there is a corresponding data collection instrument that will be used. The study will be use; Questionnaire Guides, Interview Guide and Document review checklist as described in the sub-sections below.
3.6.1 Self-administered Questionnaire
The questionnaire shall be designed in a manner that motivates respondents with simple structured questions with the option of providing any addition information to the structured questionnaire as an option to obtain relevant data from them. The questionnaire is structured with both close-ended and open-ended questions. It has aLikert scale 1-5 indicating the level of a respondents’ agreement or disagreement, where 1 represents Strongly Disagree and 5 stronglyAgree.
3.6.2 Interview Guide
The researcher will use an interview guide to collect data in order to find out the vivid picture of the participants’ perspective of the topic. Interviews are an effective qualitative method for getting people to talk about their feelings, opinions and experiences. They are also an opportunity for us to gain insight into how people interprete study topics. The views of the respondents will be a personal reflection of their personal experience relating to the study topic. Open ended questions will allow ease of expression and capture of vast information from study participants.
3.7 Methods of data collection
Both primary and secondary data collection methods will be used
3.7.1 Primary data
Primary data will be gathered basically through structured questionnaires and interviews with key informant members.
The Researcher will use arrangement of structured questionnaires and interviews. According to Oso and Onen, (2008) questionnaires are a data collection technique in which the respondents respond to the number of items in writing. Questionnaires will be chosen simply because of the time limitation and partly because the researcher was dealing with an elite community
Interviews will be among the other data collection technique to be used by the Researcher. They will be used as an addition to the questionnaires, but at the same time they will enable the Researcher further into the responses given in the questionnaires particularly given the importance of the research and the specialized nature of the topic under study.
3.7.2 Secondary data
Secondary data on the other hand will be gathered through review of available Business records, Banks records, journals, business magazines, text books and other dissertations.
3.8 Data collection procedure
The researcher will obtain an introductory letter from the Head of Department, as an authorization to seek permission from the University. Once the management approves, the researcher will continue to collect the necessary and relevant data. This is purposely to build confidence among the respondents.
3.8 Data quality control of instruments
The data collection tools will be pre-tested on a smaller number of respondents from each category of the population to ensure that the questions are accurate.
3.8.1 Validity
Validity is defined as the extent to which results can be accurately interpreted and generalized to other populations (Oso & Onen, 2008). While Borg & Gall, 1989 as cited in Onyinkwa, (2013) validity is defined as the degree to which results obtained by the research instrument correctly represented to the phenomenon understudy and Mugenda & Mugenda, (1999) as the accuracy and meaningfulness of inferences which are based on the research results.
Amin, (2005) recommended minimum CVI of 0.7 to be used. Validity will be tested using content validity index which involves judges scoring the relevancy of the questions in the instruments in relation to the study variables.
The formula for Content Validity index will be;
CVI =
Where CVI = content validity
n= number of items indicated relevant.
N = total no. of items in the instrument
In this study, validity will be achieved by establishing content validity. The researcher achieved content validity by using the experts to assess the validity of the research instrument. The experts especially research supervisors and consultants from UMI will be given data collection tools to assess whether the items in the instruments are valid in relation to research topic, objectives, and questions. From the instruments they will be declared some items valid and others invalid. Those declared invalid will be dropped, others adjusted, while the valid ones will be maintained. Then content validity index (CVI) will be computed by dividing the number of items declared valid by total number of items/questions in the data collection instrument.
3.8.2 Reliability
According to Mugenda and Mugenda, (2003) reliability is the measure of the extent to which research instruments are able to provide the same results upon being tested repeatedly. Crobach’s coefficient alpha (a) as recommended by Amin, (2005, P.302) will be used to test the reliability of the research instrument. The instrument is deemed reliable if reliable of 0.7 and above is obtained and therefore, it will be adopted for use in the data collection.
Formula for reliability is
= ()
Where = alpha reliability co efficiency.
K=Number of items included4 in the questionnaire
= sum of variance of individual items
= variance of all items in the instrument.
To ensure credibility and trust worthiness of qualitative data the researcher will ensure that only the officials who are employees of BRAC will be interviewed.
3.9 Data Processing
After the data collection exercise, the data collected will be edited to eliminate errors, ensure completeness, accuracy and relevancy. It will then be coded to allow the use of frequencies and percentages as units of measurement this will be through sorting and summarizing so as to make meaningful information for the betterment of the organization and then presented in tables.
3.10 Data analysis
Mugenda and Mugenda (1999) and Mbaaga (2000) both defined data analysis as a process of bringing order, structure and meaning to the data gathered to create information out of it. Data analysis was therefore, done with quantitative and qualitative methods. The quantitative (Questionnaires) and qualitative (interviews) will be analyzed separately and then combined during discussion of the findings.
3.10.1 Quantitative Data Analysis
Data processing will be done by entering the data into a statistics package for social sciences (SPSS) version 24.0 in line with the research questions. Data analysis will be done by also using this statistics package for social sciences (SPSS) to formulate frequency tables where the percentages, frequency, mean, variance and standard deviation will be obtained.
Under quantitative analysis, process included editing, classification, coding and presentation. Data will be summarized in frequency tables, percentage; data will be analyzed with the use of statistical package for social scientist (SPSS). Quantitative data will be collected through structured questionnaires and it will be cantered into a computer, tabulated and analyzed.
Spearman’s correlation coefficient and regression analysis is recommended by Amin (2005, P.378) will be used during data analysis in order to test the strength, degree and direction of the study topic. The formula will be used for this study because it is compatible with SPSS program in addition to being appreciated in analyzing data under which the data will be arranged.
3.10.2 Qualitative Analysis
Qualitative data will be analyzed using content analysis.it involved gathering and analysing data based on the content, where by the raw data collected from the field will read through to enable the researcher to get familiar with the data. At this process the study will use noted cards to organise the available data to accelerate further analysis. Data will then be evaluated and analyzed to determine its accuracy, credibility, usefulness and consistency which aided acceptance or rejection of the research hypothesis.
3.11Measurements of variables
A five point Likert ordinal scales ranging from; strongly agree which was assigned 5, strongly Agree, 4 agree, Not Sure assigned 3, Disagree allocated 2 and strongly disagree allotted 1 to obtain responses on the variables. The Likert ordinal scale has been used by numerous scholars who have conducted similar studies such as Bowling, (1997). The structured questions will be measured using the variables;
3.12 Ethical considerations
The researcher will ensure that before giving questionnaires to the respondents their consent is sought and when they accept to participate in the study, they will be given questionnaires.
Confidentiality of the respondents ‘information will be assured and the researcher will also be informed that the study is strictly for academic purposes and therefore, they should not fear giving information.
Only respondents who are selected will be given questionnaires and only those meant to be interviewed will actually be interviewed.
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