Determinants of the integrity climate of public organizations – a procurement perspective

Abstract

The role of public procurement in a country’s economy is well recognized, as also its vulnerability to corruption. While procurement involves various organizational levels, with outcomes evaluated against the organizational goals, anti-corruption studies have focussed on the project level. This study broadens the perspectives on anti-corruption from these focal boundaries toward an organizational standpoint. The study explores an organization’s integrity climate, which provides a reference framework to guide behavior and decision-making in procurement. Twenty-two integrity climate measures (ICMs) are identified as determinants of the integrity climate through literature survey, interactions with practitioners, and a Delphi survey among anti-corruption experts. Their perceived criticality and implementation level are evaluated by 193 practitioners across 15 large public organizations in India through a questionnaire survey. Transparency, the role of leadership, and fair competition emerge as the most critical ICMs. Factor analysis followed by multiple regression reveals four critical factors: key process management, control and oversight, commitment to integrity, and system accessibility & stakeholders’ engagement. Correlation network analysis applied to two organizations illustrates the synergies among the ICMs and the organizational uniqueness. The structure of the integrity climate presented will aid policymakers and practitioners in identifying specific actions to enhance integrity in procurement.