Policies Versus Politics: Which is the more important determinant of public sector supplier selection decisions in Nigeria

Abstract

Government policy requirements and external political influence are two important factors that have been associated with public procurement processes, but only few studies have considered their relative effect on public supplier selection outcomes in emerging markets. Using Nigerian public sector firms as research setting, this study aimed to empirically determine which of these two factors is more important/influential in explaining supplier selection decisions. Data were obtained from a purposeful sample of 342 senior level staff drawn from 40 public sector firms via structured self-administered questionnaires. Result of regression analysis shows that relative to the importance attached to government policies during public supplier selection decisions, considerations for the interests of important politicians predominate the process. In other words, though important, government policy measures aimed at constraining public sector supplier selection behaviour will continue to appear ineffective in the face of inordinate political influence in the selection process. The implications of the study's finding to prospective investors and policy makers, as well as suggestions for further research, are also discussed.