INFLUENCE OF THE DIMENSIONS OF AGENCY’S CAPACITIES TO THE PERFORMANCE IN GENERATING OWN SOURCES REVENUES IN THE GOVERNMENT AGENCIES IN TANZANIA

Abstract

The study assesses the influence of the dimensions of agency’s capacities to the performance in generating own sourcesrevenues in the government agencies in Tanzania. The study used institutional theory and contingency theory, anexplanatory case study strategy together with survey methods to assess the influence of government agencies’ capacitiesto the performance in generating own sources' revenues. Data were collected by administering 80 questionnaires toagency’s senior officers who were members of the management team and staff at large. The government agencies thatwere purposively selected to be part of this study were National Housing and Building Research Agency (NHBRA),Agency for Development of Educational Management (ADEM) and Taasisi ya Sanaa na Utamaduni Bagamoyo(TaSUBa). The findings of this study revealed that planning and development, human resource, and infrastructurecapacity significantly and positively influence the performance of the agency in generating own source revenues.However, financial capacity and good governance were found to have insignificant influence. This might be contributedby the fact that there were ineffective governance practices in term of ineffective committees, poor policies andprocedures as it was revealed in descriptive analysis. It is concluded that the critical capacities which strongly andpositively influence the performance of the agency in generating own source revenues are planning and developmentcapacity, human resource capacity, and infrastructure capacity. The study recommends that these government agenciesmust find more sources of revenue, consider seriously the issue of motivation to staff, operate competitively, havecomplex and good long term strategic plans and aim at implementing them. The implication of the study findings is thatit contributes knowledge to the administrative actors and also policy and regulation makers such as the parliament ofTanzania, the office of the CAG and ministry for finance to form policies on the five dimensions of capacity that willenable government agencies to improve and grow