Managing Public Procurement Practices to Enhance Supply Chain Innovation: Public Procurement as a Policy Tool

Abstract

Public procurement plays a significant role in driving innovation within supply chains, yet there are substantial challenges hindering its effective utilisation as a policy tool to enhance innovation. This article explores the role of public procurement in promoting innovation among supply chain practitioners, focusing on the context of Tanzania. Findings reveal limited awareness among stakeholders regarding the potential of public procurement to foster innovation, with prevailing perceptions prioritising compliance objectives over innovation promotion. Strategies to promote innovation, such as alternative bidding, are underutilised, and regulatory frameworks often lack support for innovative procurement approaches. Recommendations emerge to address these challenges, including enhancing awareness through capacity-building programs, revising regulatory frameworks to support innovative procurement, addressing budgetary limitations, fostering a culture of innovation within procuring entities, and streamlining procurement processes. Implementing these recommendations can unlock the full potential of public procurement as a driver of innovation, contributing to economic growth and sustainable development.