Strategic market approaches and project procurement performance: The moderating role of supply market intelligence in world bank-financed projects in Tanzania

Abstract

The World Bank Group plays a significant role in financing and supporting the implementation of development projects across many developing countries. Moreover, 15% of these projects experiences delays, cost overruns and quality issues worldwide.  Therefore, this study examines the moderating role of Supply Market Intelligence (SMI) in the relationship between market approaches (PM) and project procurement performance (PPP) in World Bank-financed projects in Tanzania. Grounded by Dynamic Capabilities Theory and Transaction Cost Economics theories, quantitative cross-sectional survey design was employed, primary data collected through a structured questionnaire from 181 Project Implementation Unit (PIU) staff from World Bank-financed projects in Dar es Salaam and Dodoma. Data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) through SmartPLS 4. The findings reveal that market approaches are positively and significantly associated with project procurement performance, indicating contribution to improvement of cost-efficiency, quality, and timely project delivery. However, SMI negatively moderates the relationship between PM and PPP, suggesting that excessive or poorly integrated market intelligence may increase information-processing demands, procedural complexity, and coordination challenges within highly regulated procurement environments. The study concludes that while PM is positively associated with PPP, SMI is not universal beneficial. Projects should develop staff skills and capacity to collect, analyse, interpret and use supply market intelligence in context-based. This study recommends that, PIU to strengthening procurement analytical capabilities and skills that focus on collecting relevant, timely, and decision-oriented market intelligence that directly supports procurement strategic decisions while avoiding unnecessary information gathering that may increase administrative burden and delay procurement processes.