Heliyon 6 (2020) e03132

Contents lists available at ScienceDirect

Heliyon
journal homepage: www.cell.com/heliyon

Research article

Strategic public procurement regulatory compliance model with mediating

effect of ethical behavior
Dauda Ibrahim Sarawa a, Abdulsalam Mas'ud b, *
a
Department of Business Administration and Management, Jigawa State Polytechnic, Dutse, Nigeria
b
Tunku Puteri Intan Safinaz School of Accountancy, Unversiti Utara Malaysia, 06010, Sintok Kedah, Malaysia

A R T I C L E I N F O A B S T R A C T

Keywords: The paper proposes and validates the strategic public procurement regulatory compliance model with mediation
Law effect of ethical behavior. It expands the socio-economic theory of regulatory compliance to explore the mediating
Economics effect of ethical behavior on the influence of professionalism, familiarity, enforcement, resistance to political
Business
pressure and compliance with public procurement regulation. A quantitative research design was deployed using
Psychology
Sociology
125 procurement officers as a sample group. The data from the sample was analyzed using Partial Least Squares
Ethical behavior public procurement regulatory Structural Equation Modeling (PLS-SEM). The results validated the hypotheses for the strategic public procure-
compliance ment regulatory compliance model with mediation effect of ethical behavior. The study not only confirmed the
earlier findings on the direct effects of professionalism, familiarity, enforcement, resistance to political pressure
and ethical behavior on compliance, but also established the mediating effect of ethical behavior on compliance
on all the predictors except resistance to political pressure. The study implied that ethical behavior of public
procurement officers should be a strategic point of concern by both policymakers and professional bodies.
Theoretically, the studyexpands thesocio-economic theory of regulatory compliance within the context of pro-
curement literature through mediation effects of ethical behavior via structural analysis.

1. Introduction Kenya. Likewise, Chikwere et al. (2019) reported significant effects of

familiarity, incompetence, political interference and poor monitoring on
Extant literature thoroughly investigates the determinants of non-compliance with the public procurement legal framework in Ghana.
compliance with public procurement regulations (Abere and Muturi, Additionally, Omagbon (2016) reported that the reason for a low public
2015; Chikwere et al., 2019; Hyacinth and Yibis, 2017; Omagbon, 2016; procurement regulatory compliance among the local government council
Sandada and Kambarami, 2016). However, such investigations were mainly results from a low level of professionalism, lack of media coverage
conducted through simplistic models and it is contended here that there and publicity of the public procurement issues as well as considerable
is a need to go beyond simplistic models tomore strategic models for a interference by politicians in the procurement processes. Similarly,
wider understanding of the key factors that extensively explain the public Sandada and Kambarami (2016) also found that familiarity with pro-
procurement regulatory compliance. Such an understanding would likely curement regulations, enforcement of such regulations and political
offer strategic policy insights to enable focus into more specific and interference are the key factors significantly predicting compliance with
important factorscapable ofimproving procurement regulatory compli- procurement regulations. However, the study of Hyacinth and Yibis
ance. Strategic public procurement compliance here refers to the sys- (2017) reporteda finding with some inconsistencies with the extant
temic structural analysis for understanding the most prime factor that literature, specifically whereby it disclosed that familiarity and profes-
could account for higher explanation on public procurement regulatory sionalism do not have significant influence on public procurement reg-
compliance. Analysis ofearlier studies revealed relative consistencies ulatory compliance in a polytechnic setting in Nigeria while institutional
across some variables on their influence on compliance. Starting from factors do.
Abere and Muturi (2015), the results reported in their study revealed While these earlier empirical evidences have utility values, they were
significant influence of trainings, ethical practices, and enforcement constrained to offer important policy insights on the strategic factor in
mechanisms on compliance with public procurement regulation in the compliance processes. The simplistic direct effects model examined

* Corresponding author.
E-mail addresses: [email protected], [email protected] (A. Mas'ud).

https://doi.org/10.1016/j.heliyon.2019.e03132
Received 25 June 2019; Received in revised form 11 November 2019; Accepted 24 December 2019
2405-8440/© 2019 The Author(s). Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-
nc-nd/4.0/).
D.I. Sarawa, A. Mas'ud Heliyon 6 (2020) e03132

by earlier studies revealed relatively consistent results (Abere and procurement regulatory compliance and its determinants. It is important
Muturi, 2015; Chikwere et al., 2019; Hyacinth and Yibis, 2017; Omag- to note that the identification of the key driver contract is critical and
bon, 2016; Sandada and Kambarami, 2016). Following this relative should be done to guide policy prioritizationand simplify policy choices.
consistency in findings, it is important to refer to the recommendations It should also be desirable by professional bodies in devising training
for formulation of strategic regression models. In this, the seminal work programs in mouldingthe behaviors of their members.
of Baron and Kenny (1986) which extensively offers guidelines of using The second motivation is methodological cum theoretical. The
moderator and mediator variables has been a source of reference. The application of PLS-SEM in validating Socio-economic Theory of Regula-
aim is to gain insights on the important analysis to perform so as to un- tory Compliance (Sutinen and Kuperan, 1999)is not availed by the extant
derstand the strategic factor that will be a policy focus when institutions public procurement literature. This is doable as PLS-SEM have been used
have a desire to achieve a high level of public procurement regulatory in several studies for validation of structural theories such as Theory of
compliance. Referring to this, it can be summarized from the work of Planned Behavior (TPB) of Ajzen (1991). It is expected that the outcome
Baron and Kenny (1986) that when there is inconsistency in findings, the of this validation should have methodical and theoretical significance in
use of a moderator is recommendedwhereas the existence of consistency both the validation of the theory as well as its application within the
among the empirical studies suggests the use of a mediator variable. context of public procurement. Lastly, beyond the validation of the the-
Following these methodological insights, reference was made to ory that serves as the second motivation, Socio-economic Theory of
procurement literature to understand the strategic factor frequently Regulatory Compliance has not been extended through mediation anal-
been emphasized by earlier researchers with respect to public procure- ysis. This also motivates the study for the fact that such expansion will
ment compliance. In this, ethical behavior has been the most important widen the understanding of the theory beyond which is already known in
variable been emphasized within the context of public procurement. the literature. The expectation is that this could open windows for future
Saini (2010) considered ethics as a pre-requisite for reducing researchers to propose and validate moderation and mediation models
non-compliance. The implication of this assertion is that while other within the continuum of public procurement literature, which is
factors are desirable in achieving a high level of compliance, ethics is currently lacking. Following these motivations, the objective of the study
the pre-condition. It was also concluded by Ogol and Moronge (2017) is proposedin validating a strategic model for the examination of struc-
that ethical behavior is an important factor that can improve procure- tural mediating effects of ethical behavior on the influence of profes-
ment performance among organizations. Moreover, it was emphasized sionalism, familiarity, enforcement and resistance to political pressure on
that ethical practices must be ensured during the procurement process to public procurement regulatory compliance.
avoid consequences that may be dire (Mwangi and Kwasira, 2015). This paper is organized into five sections; this section being the
Following these important emphases on the role of ethics and ethical introduction in which the background, motivation and objective of the
behavior on procurement compliance, it can be contended that ethical research are discussed. The second section is the literature review in
behavior could be a potential mediator in the influence of public pro- which theoretical frameworks are presented and hypothesesdeveloped.
curement regulatory compliance and its determinants. Put differently, The third section isthe methodology applied in conducting the study. The
ethical behavior could be a mechanism that can explain why such de- fourth section is the presentation of research findings. The last part
terminants have been consistently showcasing public procurement contains discussions, conclusion and implications.
compliance across various settings. Establishing this mediation effect
could offer a strategic policy focus on improving compliance with public 2. Literature review
procurement regulations. In fact, it will simplify the effort of public
sector institutions in achieving a high procurement compliance. In 2.1. Theoretical framework
addition, the strategic model proposed in this paper can also be sup-
ported with the theoretical literature within the field of public pro- The strategic public procurement regulatory compliance model with
curement. For instance, Tukamuhabwa (2012) conceptually proposed mediating effect of ethical behavior is proposed through the theoretical
moral obligationas a potential mediator in the relationship between support of Socio-Economic Theory of Regulatory Compliance developed
perceived rule legitimacy and procurement compliance. Similarly, Zitha by Sutinen and Kuperan (1999). The theory integrates economic deter-
and Mathebula (2015) identified ethical conduct as a centerpiece of rence theory with legitimacy, psychological and sociological theories to
procurement that can be used as a tool to reconstruct the government's account for moral obligation and social influence as determinants to in-
integrity. Suggestion was also made for the identification of the root dividual decisions towards compliance (Hyacinth and Yibis, 2017). The
causes of non-compliance to help policymakers direct their policies to- theory is chosen to underpin the model proposed in this study for three
wards improving public procurement compliance. reasons. First, the dependent variable in the theory is regulatory
The motivation of the study is threefold. The first is practical moti- compliance, which equally stands as the dependent variable in the study.
vation that could impact on policymaking. While the existing procure- The theory argued that beyond the earlier notion that compliance is
ment models are highly simplistic in presentations, they are complex in explained by deterrence measures, it could be further explained by psy-
application. They present direct effects of many variables in relation to chological and sociological factors. Second, it is highly robust in
public procurement compliance providing a simple model, but complex explaining the proposed relationships in the model suggested in this
in application. The fact is that mostly, no specific variable has been study as it provides explanations on the linkage of the regulatory
prioritized for policy concern. In this study, a strategic complex media- compliance and its determinants. Lastly, the theorygives emphasis on
tion model is proposed and validated. While it could be complex in moral obligation (here conceptualized asethical behavior)being an
design compared to earlier studies due to the integration of a mediating important factor affecting compliance decisions.
effect, it could be simple in application since it prioritized a specific Beginning with professionalism, Sutinen and Kuperan (1999) hypothe-
factor for which policymakers shouldplace emphasis. While literature sized that compliance with rules and regulations is related to the internal
falls short in addressing this challenge, the methodological guide from capacity of individual through cognitive development. Considering profes-
Partial Least Squares (PLS) Structural Equation Modelling (SEM) in- sionalism is achieved through trainings and professional development which
dicates that the examination of this complex model with mediating effect serves as mechanisms for achieving adherence to professional and ethical
of ethical behavior is feasible and can be undertaken. Specifically, PLS- standards (Hunja, 2003; Sandada and Kambarami, 2016), it is arguable that
SEM enables the identification of the “key driver” construct (Hair when individuals undergo processes of cognitive development, they can-
et al., 2011). Therefore, the study identified ethical behavior based on have improvements in internal capacity that leads to a high sense of pro-
the support from the literature (Zitha and Mathebula, 2015; Mwangi and fessionalism, then, moral obligation (ethically behavior) and ultimately,
Kwasira, 2015; Ogol and Moronge, 2017) as a mediator between public comply with public procurement regulations.

2
D.I. Sarawa, A. Mas'ud Heliyon 6 (2020) e03132

For the second determinant of compliance – familiarity, this can be Lastly, the role of ethical behavior in influencing compliance was also
achieved either through on-the-job experience via interactions with highlighted in the socio-economic theory of regulatory compliance. The
experienced colleagues at the workplace or through trainings on and theory highlights the influence of intrinsic motivation and morality on
reading of procurement regulations. In the case of familiarity through on- compliance (Sutinen and Kuperan, 1999). Relating to this, reference was
the-job learning, it can be deduced from the theory based on the Sutinen made to the game theory, in which fishermen were asked the reason
and Kuperan’s (1999) hypothesis that compliance with rules and regu- behind their decisions to comply despite illegal gains beingmuch bigger
lations isrelated to the influences of the environment through socializ- than the expected punishment. Sutinen and Kuperan (1999) stated that
ation which is the linkage between an individual and the society. Here, under this scenario, fishermen prefer doing the right thing despite ample
the workplace is considered as the society. They further discussed that opportunity to cheat. In the context of public procurement, officers may
the influence of the environment is an important factor that could in- have ample opportunities to cheat through unethical practices possibly
fluence individuals' decisions towards compliance. One of key variables due to their knowledge of the procedures to the extent that they
explaining compliance according to the theory is individual encounters manipulate them without others being aware, or that they may get
(Sutinen and Kuperan, 1999). Linking this assertion to the familiarity support from politicians to connive and cheat, or even offerings from
implies thatpublic procurement officerscould be familiar with public contractors. Conflictingly, even in such cases, officers may decide to
procurement processes and proceduresthrough their interactions with behave ethically by complying with the extant rules and regulations.
peers and encounters with colleagues who have better knowledge and With this in mind, officers may act in a fair, transparent and accountable
understanding of such processes and procedures to be more aware of the manner to ensure good procurement practices.
regulations and ensure on-the-job learning for proper implementation of Though the socio-economic theory of regulatory compliance does not
public procurement regulation. The fact is that familiarity with pro- highlight the mediating effect of ethical behavior, such could be logically
curement regulations in achieved through both training and awareness established through the support of methodological literature on the
which could be ensured through the interaction with other people. It is moderator-mediator variable, especially the golden work of Baron and
arguable that when individuals engage with peers who are familiar with Kenny (1986). Starting with professionalism, it has been clear from the
procurement regulations, they would likely influence his/her opinion to work ofHunja (2003) and Sandada and Kambarami (2016) that in-
also be familiar with such regulations. In the case of familiarity through dividuals can achieve it through training and professional development.
personal learning, the theory also highlights the relevance of cognitive Therefore, the expectation could be that such professional development
learning in the compliance decisions through various stages of develop- can improve their ethical behavior, and eventually comply with pro-
ment (Sutinen and Kuperan, 1999). curement regulations. Additionally, the influence of familiarity on
Enforcement is the third determinant proposed in the strategic public compliance can be mediated by ethical behavior. It is logical to argue that
procurement regulatory compliance mentioned in this research. Sutinen familiarity with processes and procedures would likely reduce unin-
and Kuperan (1999) concluded that the application of coercive tended errors. The fact is thatsome unethical practices happen due to the
enforcement mechanism remains an essential ingredient in regulatory lack of knowledge and awareness resulting from weaker familiarity with
compliance regime, even in the presence of a high degree moral obli- processes and procedures. When procurement officers obtain adequate
gation and social influence. Thus, in line with this theoretical postulation, knowledge and awareness, such unintended unethical practices can be
it can be proposed here that the enforcement of public procurement avoided, and eventually, higher compliance could be achieved. Similarly,
regulations will make public procurement officers behave ethically and the existence of powerful enforcement mechanisms could make it
consequently comply with public procurement regulations. Specifically, possible for procurement officers to behave ethically due to fear of
Sutinen and Kuperan (1999) stressed that individuals' intrinsic obliga- punishmentand could ultimately result in high compliance. Moreover,
tions (ethical behavior) could be achieved through the dictation of public resistance to political pressure could improve ethical behavior and
authorities such as the police, bosses in the workplace, and general au- consequentially bring to high compliance with procurement regulation.
thorities based on one's loyalty when such dictates are contrary to indi- Beyond this logical argument and building on the recommendation of
vidual interest. This, it is implied that enforcement would likely lead to Baron and Kenny’s (1986), it is inarguable that a mediating variable such
this kind of intrinsic motivation and eventually enhance regulatory as ethical behavior could fit in the proposed model for two reasons.
compliance. Firstly, there have been relatively consistent findings on the influence of
The fourth determinant is resistance to political pressure. In this, the professionalism, familiarity, enforcement, and political interference on
theory highlights that the dictates of the followers to be loyal to authority compliance (Abere and Muturi, 2015; Chikwere et al., 2019; Omagbon,
in compliance decisions depends on “legitimacy” (Sutinen and Kuperan, 2016; Sandada and Kambarami, 2016). Hence, there is the need for in-
1999). Drawing from the fact that political office holders mostly induce clusion of a mediator variable in line with Baron and Kenny’s (1986)
public procurement officers to behave unethically in an attempt to award suggestion. Secondly, it is interesting that ethics has been seen as a key
contract to their cronies (Owara, 2016), to behave ethically means public variable in public procurement compliance literature (Mwangi and
procurement officers need to resist political pressures. This implied that Kwasira, 2015; Ogol and Moronge, 2017; Saini, 2010). Thus, it is
even when the political office holders, chief executives and other considered as a potential mediator here in the strategic public procure-
powerful forces within an organization instruct the violation of the reg- ment regulatory compliance model. The model is presented in Figure 1.
ulations or create pressures towards violating them, procurement officers It is important at this point to differentiate between ethical behavior
should evaluate the legitimacy of such instructions and resist any pres- and regulatory compliance. Though compliance in itself can be seen as
sure towards violation. Eventually, this will lead to morality acts which ethical behavior, the operational measurement of “ethical behavior” and
would enhance compliance with the regulations. Sutinen and Kuperan public procurement compliance is not the same. Ethical behavior here is
(1999) further states that perception of procedural legitimacy is linked to more to the “personal ethical traits” of the officers while public pro-
the individual's view of procedural fairness, such that individuals who curement compliance is about the “proper implementation of the public
viewed the procedure employed by political authoritiesas fair would be procurement regulation” which are clearly distinct in concept. This
more likely to comply with laws and regulations. Therefore, connecting means personal ethical traits (ethical behavior) could lead to organiza-
these theoretical insights with resistance to political pressure, it is tional action (implementation/compliance). Ethics is about morality; it
arguable that public procurement officers would resist political pressures explains and differentiates what is morally right or morally wrong.
when they perceive the procedures employed by the political authorities Consistently, procurement ethics is considered as a moral behavior
as unfair or illegitimate. When this persists, such officers would be said to within the procurement as a profession and practice (Abere and Muturi,
behave ethically, and eventually ensure compliance with prescribed 2015). In this study, ethics is considered onan individual level (pro-
public procurement regulations. curement officers’ ethical behavior) while compliance is regarded on an

3
D.I. Sarawa, A. Mas'ud Heliyon 6 (2020) e03132

Figure 1. Ethical behavior and compliance with procurement regulation – a mediation model.

organizational level (actions in the form of proper implementations of the been identified between variables, there is a need to understand the
regulation). When extant literature investigated the effects of ethics on mechanism that underpins such a consistent relationship. The emphasis
the compliance level of procurement in Zimbabwe, the findings showed given to ethical behavior in the public procurement literature (Fourie,
significant effects (Sandada and Kambarami, 2016). It was suggested that 2017; Saini, 2010) implied that it is a key variable in the procurement
overarching on moral values and ethical principles that have a sustain- processes. Thus, it is considered as a potential mediator in the influence
able impact on the creation of public value and outcome of procurement of professionalism on public procurement compliance. In fact, ethical
processes in the military should be considered (Fourie, 2017). This would codes have been highlighted as possible mediators in the famility busi-
highlight the importance of ethics in the public sector procurement. ness literature (Cuadrado-Ballesteros et al., 2017). That being so, it can
Therefore, in the strategic model for public procurement complaince be logically argued here that when procurement officers attained a
proposed in this study, ethical behavior is identified as a key mediating certain level of professionalism, this could lead to ethical practices and
variable to explain the consistent relationship between public procure- consequentially enhance compliance. In line with this argument, the
ment compliance and its determinants across various studies. following hypothesis is developed.
H1: Ethical Behavior mediates the relationship between profesional-
3. Hypotheses development ism and compliance with public procurement regulations.

It is important to note that the hypotheses here focused only on the

3.2. Familiarity, ethical behavior andCompliance with public procurement
mediation effect. The fact is that the direct effects of professionalism,
regulations
familiarly, enforcement, political pressure and ethical behavior has been
extensively examined in the literature. The concern is to provide
It has been opined that lack of procurement knowledge remains a
empirical evidence on the strategic mediating effect of ethical behavior
major weakness to the achievement of procurement efficiency (Sandada
on these direct relationships.
and Kambarami, 2016). For instance, in Nigeria, public procurement is
guided by the Procurement Act, 2007. Thus, a deep understanding of this
3.1. Professionalism, Ethical Behavior and Compliance with public law as well as its provision will enablea better compliance. Eyaa and
procurement regulations Oluka (2011) noted a limited understanding of roles by many corporate
members in state-owned enterprises in Africa such that their behavior
Professionalism in public procurement can be described as a situation and decisions tend to be discretionary. The management and other
in which educated, experienced and responsible procurement officers stakeholders tend to manipulate those responsible for procurement due
make informed decisions regarding procurement operations (Hyacinth to the weaker knowledge of procurement regulations by the latter. For
and Yibis, 2017). It was also considered as a display of professional this reason, it was argued that the awareness of procurement regulation
approach in conducting procurement practices (Omagbon, 2016). It was in state-owned enterprises is low (Sandada and Kambarami, 2016).
opined that professionalism is critical in compliance to public procure- Through a conceptual model, Zadawa et al. (2015) highlighted the
ment regulations (Sandada and Kambarami, 2016). possible influence of familiarity with procurement guidelines on
Several empirical evidences explored the effects of professionalism on compliance with public procurement regulations.
public procurement regulations. Gelderman et al. (2006) maintained that Empirically, studies confirmed the influence of familiarity on
professionalism plays an integral role in ensuring compliance within compliance with public procurement laws and regulations (Eyaa and
public procurement. Likewise, Sandada and Kambarami (2016) found a Oluka, 2011; Gelderman et al., 2006; Sandada and Kambarami, 2016;
significant relationship between professionalism and compliance with Mwelu et al., 2018). However, Jaafar et al. (2016) and Hyacinth and
public procurement in Kaduna Polytechnic, Nigeria. It was also reported Yibis (2017) found insignificant direct effects of familiarity on public
by Omagbon (2016) that professionalism in public procurement leads to procurement regulations.
compliance with public procurement law. The study of Jaafar et al. Ergo, it is evident here that the influence of familiarity on compliance
(2016) also found the strong influence of professionalism and compliance with public procurement regulationshas displayedrelatively consistent
with public procurements in Malaysia. This is also consistent with the results in most instances and has been extensively examined in the
findings of Mrope (2017) among Tanzanian public institutions, as well as literature (Eyaa and Oluka, 2011; Gelderman et al., 2006; Sandada and
Kenya (Jones et al., 2015) and Uganda (Mwelu et al., 2018). However, an Kambarami, 2016; Mwelu et al., 2018). The only insignificant results are
earlier study of Eyaa and Oluka (2011) reported insignificant effects of from Jaafar et al. (2016) and Hyacinth and Yibis (2017) which are still in
professionalism on compliance with public procurement. a similar direction of a positive relationship with compliance. It implied
The review above revealed consistent relationship between profes- the need to understand the mechanism that underpins such consistent
sionalism and compliance with public procurement regulations (Gel- results. Interestingly, the recommendation of Baron and Kenny (1986) on
derman et al., 2006; Jaafar et al., 2016; Jones et al., 2015; Mrope, 2017; using a mediator variable in such instances indicate the need to explore a
Mwelu et al., 2018; Omagbon, 2016; Sandada and Kambarami, 2016). As potential mediator. Consequently, the relevance of ethical behaviors in-
such, the literature established that whena consistent relationship has dicates its possible mediating role in this regard and eventually it is

4
D.I. Sarawa, A. Mas'ud Heliyon 6 (2020) e03132

proposed to mediate the influence of familiarity and compliance with negatively affected the procurement processes and reduced transparency.
public procurement regulations. This possible mediation has been high- Likewise, Coviello and Gagliarducci (2017) also revealed that politicians
lighted in the family business literature (Cuadrado-Ballesteros et al., influence public procurement through non-compliant acts such as
2017) although it has not been validated in the context of public pro- collusion.
curement. Within the boundaries of this study, it implied that when Most of the empirical evidence in relation to the influence of political
public procurement officers become familiar with procurement practices interference on compliance reported a negative relationship (Sandada
and procedures, it could reduce unintended ethical violations, which and Kambarami, 2016; Omagbon, 2016). Equal with these findings,
could happen due to lack of knowledge, experience and awareness. When Jones et al. (2015) deployed an alternative approach in which political
this is achieved, the eventual result will be high compliance. Thus, the interference was examined on non-compliance whereby the results
following hypothesis is developed. revealed a positive relationship, implying that higher political interfer-
H2: Ethical Behavior mediates the relationship between familiarity ence leads to higher non-compliance. In fact, Chikwere et al. (2019)
and compliance with public procurement regulations. found that political interference was the most significant variable influ-
encing non-compliance with public procurement regulations. The
3.3. Enforcement, Ethical Behavior and Compliance withPublic implication of this is a reversal of compliance to non-compliance which
procurement regulations results in a positive relationship. It reflects the strategic model of public
procurement compliance proposed here; the political interference was
Enforcement has been defined as actions taken by regulators to ensure reversed to resistance to political pressure, and thus, it is expected to
compliance (Zubcic and Sims, 2011). For procurement compliance to be have a positive relationship with compliance. The earlier studies that
highly effective it must be supervised by external agencies. Kiama (2014) examined the relationship between political interference and compliance
summarized the views of earlier researchers on the impact of enforce- reported a negative relationship (Sandada and Kambarami, 2016;
ment on compliance; he reported that some scholars doubt on the direct Omagbon, 2016), and the reversal of measurement of compliance to
effect on enforcement on compliance, suggesting that strong enforcement non-compliance revealed a positive relationship with political interfer-
may make the violators more sophisticated in devising means to conceal ence (Jones et al., 2015; Chikwere et al., 2019). In this study, instead of
detection, while others still maintain the view that enforcement prevents reversing the measure of compliance to predict a positive relationship,
non-compliance. the measurement of political interference was reversed and expected to
Empirically, the literature revealed that enforcement has a strong reveal a positive relationship with compliance. Regardless of the
effect on compliance with procurement regulations (Gunningham and approach followed, the relationship between political interference and
Kagan, 2005; Imperato, 2005; Kiama, 2014; Zubcic and Sims, 2007; compliance has been consistent, either in a negative relationship be-
Sandada and Kambarami, 2016). Similar findings were made by Sandada tween political interference and compliance or a positive relationship
and Kambarami (2016). Drawing from these emperical evidence, it is between political interference and non-compliance. This implied the
clear that enforcement still maintain a positive influence on compliance. need to integrate mediating variables in line with the suggestion of Baron
Based on the above review, it can be seen that empirical procurement and Kenny (1986). Naturally, ethical behavior has been considered due
literature also documents consistent findings on the influence of to its relevance in public procurement processes. In fact, ethics has been
enforcement on compliance (Cunningham and Kagan, 2005; Imperato, considered as a mediator in the link between family firms and their social
2005; Kiama, 2014; Zubcic and Sims, 2007; Sandada and Kambarami, performance (Cuadrado-Ballesteros et al., 2017). The argument is that
2016) despite the argument that has been made on the possibility of when public procurement officers resist political pressure, this could lead
non-compliants devising sophisticated means for continuous to ethical behavior, followed by compliance. Thus, supporting this
non-compliance due to excessive enforcement (Kiama (2014). The argument, the following hypothesis is postulated.
methodological guidelines on the moderation and mediation analysis H4: Ethical Behavior mediates the relationship between resitstance to
offered by Baron and Kenny (1986) recommended the use of a mediator political pressure and compliance with public procurement regulations.
variable when a relationship has been consistent among variables. Thus, Therefore, testing these four hypotheses will enable the validation of
the relevance of ethical behavior in procurement literature led to its the strategic public procurement regulatory compliance model through
identification as a potential mediator in the relationship between the mediation effect of ethical behavior. This is expected to offer persi-
enforcement and compliance with public procurement regulations. The monious policy insights on improving public procurement compliance.
possible mediating effect has been highlighted in the family business
literature in which it was considered as a mediator between family 4. Methodology of the research
business and their social performance (Cuadrado-Ballesteros et al.,
2017). Specifically, in this study, it can be logically established that when 4.1. Population and sample
there is presence of enforcement, fear of being punished may force public
procurement officers to behave ethically, and ultimately comply with The study was conducted in Nigeria's Jigawa state using public sector
public procurement regulations. Consistent with this argument, the institutions. It was estimated that the states have about 150 public sector
following hypothesis is developed. institutions. This served as the population of the study. In each of the
H3: Ethical Behavior mediates the relationship between enforcement institutions, procurement officers and more specifically, head of the
and compliance with public procurement regulations. procurement unit or their deputies, in cases where the heads are absent,
answered the research questionnaires. In estimating the sample size, the
sample size selection table proposed by Krejcie and Morgan (1970) was
3.4. Resistance to political pressure and compliance with public
used. The table revealed 108 as the estimated sample size based on 150
procurement regulations
cases. However, to reduce the possibility of a low response rate, ques-
tionnaires were distributed to procurement officers in each of the in-
The literature documented that public procurement is considered an
stitutions that served as the population, or in their absence, their deputies
inherentlypolitically sensitive activity (Omagbon, 2016). Several studies
and assistants. Following three committed months of data collection, the
reported the influence of political interference on compliance with pro-
sums of 125 usable questionnaires were obtained. This implied that a
curement regulations. For instance, Hui et al. (2011) reported that
response rate of 83.33% was obtained which is considered enough in line
interference from the local politicians, businesspersons, members of
with the suggestion of earlier studies (Fincham, 2008; Nulty, 2008).
parliament and very influential top management individuals has

5
D.I. Sarawa, A. Mas'ud Heliyon 6 (2020) e03132

4.2. Instrumentation and data collection procedures model considering its integration of a mediating role of ethical behavior,
which was considered as a critical variable within the procurement
Data was collected using a research instrument designed for the literature (Saini, 2010). It is important to note that when software such as
purpose. The design of the instrument was based on the questions Statistical Package for Social Science (SPSS) is deployed, the analyses
adapted from the previous studies. Questions for measuring compliance cannot be run at once. It needs to first establish the influence of the in-
were 16 and adapted from Omagbon (2016) and Osei-Tutu et al. (2011). dependent variable on the mediator and thereafter, the influence of the
Ethical behavior was measured using five items adapted and modified mediator on the dependent variablesand subsequently, to apply online
from the work of Cardy and Selvarajan (2006). Professionalism was tools such as Sobel mediation test to establish the mediation effect. This
measured using three items adapted and modified from four items used could be not only time consuming but also defeat one of the aims of this
by Omagbon (2016). Familiarity was measured by four items, enforce- study which is the structural application of the socio-economic theory of
ment also by four items, while resistance political pressure was measured regulatory compliance with the mediation effect of ethical behavior.
using five items in which these items are adapted and modified from the Second, the sample size is relatively small (Hair et al., 2011:144). It is
study of Abere and Muturi (2015). only comprised of 125 respondents which if based on the relative size of
These items are not newly developed but considering the fact that the population that is about 150 government agencies. Third, the goal of
they were adapted from either a different context or setting, it was this study is not theory confirmation or comparison of alternative the-
subjected to assessment of validity and reliability assessments. In terms of ories for which Covariance-based SEM can be used; its goal is extending
validity, the items were subjected to content and face validities. the existing theory through the mediation effect of ethical behavior (Hair
Following the first draft, the questionnairewas sent to three academicians et al., 2011:144). Lastly, the research is also aimed at identifying the key
not below the rank of a senior lecturer within the field of public pro- driver construct to the procurement compliance which is the ethical
curement for the assessment of the content of the questions. While all the behavior and thus, justifying the use of PLS-SEM (Hair et al., 2011:144).
items for measuring other latent constructs were assented, the experts Using PLS-SEM, Henseler et al. (2009) recommended the application
suggested the removal of 5 items out of the measures of ethical behavior. of a two-step process – the assessments of measurement and structural
Initially, 10 items developed by Cardy and Selvarajan (2006) for models. Th measurement model assessment is conducted to evaluate the
measuring the ethical behavior of salespeople were adapted where ex- reliability and validity. The idea is that only when the measures are
perts suggested that five items are irrelevant to this study. These items reliable and valid, they can be used to test hypotheses. Four basic criteria
were related to the travel expenses and openness in discussion with the were followed in analyzing the PLS-SEM measurement model as rec-
customers by the salespersons on the positive and negative aspects of ommended (Hair et al., 2011, 2013; Fornell and Larcker, 1981). The first
their marketable product. In addition to the academicians, the ques- criterion is the assessment of indicator reliability. This is evaluated using
tionnaire was also sent to three practitioners within Government Minis- its loading. It is required to be
.40. The second criterion is the
tries, Department and Agencies (MDAs). In this, the practitioners assessment of internal consistency reliability. This is performed using a
suggested the change of some wordings to reflect the context of the study composite reliability of
.70. The third criterion is the assessment of
such as changing the word “clients” to “contractors”. It is after these convergent validity. It is performed using the average Variance Extracted
adjustments of corrections and comments that the final questionnaire (AVE) of
.50. The last criterion is the assessment of discriminant val-
was administered to the few samples (30) for assessingthe internal con- idity. It is performed through the assessment of the square-root of AVE of
sistencyof reliability of the items using the Cronbach Alpha (pilot testing all the variables within the research model. It is required that the
of instrument), the result of which is depicted in Table 1 below. square-root of AVE of each latent variable should be greater than its
It is evident that the items met the internal consistency reliability squared correlation with every other variable within the research model.
requirement as the Cronbach Alpha of each of the six latent constructs The most commonly approach used in conducting this assessment is
exceeded the minimum recommended threshold of 0.70 (Nunnally, Fornell-Larcker Criterion.
1994). The alpha of the constructs ranged from 0.725 to 0.906, indicating Following the fulfillment of the measurement model requirements,
adequate internal consistency of the measures. Following these validities the analyses of the structural model was performed in line with the
and reliability analyses, the final questionnaire (contained in the Ap- recommendation of Henseler et al. (2009), Hair et al. (2011); Hair et al.
pendix) was drafted and administered to the study's sample. (2013, 2016) whereby five basic criteria were followed in the evaluation
of the structural model. The first criterion is the assessment of the sig-
nificance of path coefficients using 5000 bootstrapped samples with 125
4.3. Data analysis cases. While running bootstrapping with 5000 samples is a PLS-SEM
conventional requirement, the 125 cases are the usable responses ob-
The data of the study was analyzed through Partial Least Squares tained during data collection. Thus, they are used in the analyses. The
Structural Equation Modeling (PLS-SEM) using SmartPLS. The deploy- purpose of this criterion is to test the hypotheses of the study. The second
ment of this analytical procedure was justified byfour main reasons. First criterion is the assessment of coefficient of determination (R-squared) of
is the relative complexity of the model as well as the relative sample size. the overall effects of the exogenous variables on the endogenous vari-
These justifications could be supported by the extant literature with the ables. The results of the coefficient of determination were assessed using
methodological applications and recommendations of using PLS-SEM the values of 0.25, 0.50 and 0.75, recommended by Hair et al. (2011) as
(Hair et al., 2011: 144). The strategic public procurement regulatory small, moderate and substantial, respectively. The third criterion is the
compliance model proposed in this study could be regarded as a complex evaluation of the effect size of each exogenous variable on the endoge-
nous variables separately. The specific effects of the exogenous variables
on the endogenous latent constructs were evaluated using the recom-
Table 1. Internal Consistency Reliability (Pilot test of Instrument). mended values offered by Cohen (1988) of 0.02, 0.15 and 0.35, classified
S/N Latent Constructs No. of Items Cronbach Alpha (α)
as small, medium and large, respectively. The fourth criterion is the
evaluation of predictive relevance of the model. This was conducted in
1 Public Procurement Regulatory Compliance 16 0.906
line with Geisser (1974) and Stone (1974) who suggested that any model
2 Ethical Behavior 5 0.725
with Q2 above zero has predictive relevance. The last criterion is the
3 Professionalism 3 0.848
assessment of the strength of mediating effects in line with the suggestion
4 Familiarity 4 0.906
of Hair et al. (2013, 2016). Hair et al. (2013, 2016) recommended the
5 Enforcement 4 0.905
evaluation of the strength of the mediation effects through VAF. In this,
6 Resistance to Political Pressure 5 0.836
three classifications were offered. First, even when the mediation effect is

6
D.I. Sarawa, A. Mas'ud Heliyon 6 (2020) e03132

significant but the VAF is <20%, it can be concluded that there is no

mediation. Second, when the VAF
20% to 80%, it could be said that Table 2. Indicator reliability, internal consistency reliability and convergent
validity.
there is partial mediation. Finally, when the VAF is >80%, it could be
said that there is full mediation. Constructs Item Loadings CR AVE
CP1 0.697
5. Findings CP10 0.642
CP11 0.748
5.1. Demographic findings CP12 0.811
CP13 0.789
The demographic characteristics profile of the 125 respondents who CP14 0.817
are the procurement officers of their respective organizations revealed CP15 0.713
that 100% are male with no female procurement officer found within the Compliance CP16 0.694 0.937 0.517
sample. It also revealed those aged less than 30 years are 14.4%, 31–40 CP3 0.759
years are 57.6% and those above 40 years are 28%. The qualifications of CP5 0.673
most of the procurement officers is HND/B.Sc. which accounted for 52%, CP6 0.738
while those with ND/NCE as well as those with MBA/M. Sc. are 10.4%
CP7 0.739
and 37.6% respectively. It also discovered that those with less than 5
CP8 0.629
years’ experience are 45.6%, those with 6–10 years of working experi-
CP9 0.570
ence are 39.2%, while the rest which accounted for 15.2% have worked
EB1 0.842
for more than 10 years in the procurement sector.
EB2 0.756
Ethical Behavior EB3 0.773 0.872 0.579
5.1.1. Analysis and results of PLS-SEM measurement model
EB4 0.736
As mentioned in the methodology, four basic criteria were followed in
analyzing the PLS-SEM measurement model; (i) assessment of indicator EB5 0.689

reliabilityusing its loading of
.40, (ii) assessment of internal consis- ENF1 0.737

tency reliability throughcomposite reliability of
.70, (iii) assessment of ENF2 0.774

convergent validityusing Average Variance Extracted (AVE) of
.50, and Enforcement ENF3 0.852 0.899 0.642
lastly, iv) assessment of discriminant validity using Fornell-Larcker Cri- ENF4 0.792
terion. Table 2 presents the results of the analyses of the first three ENF5 0.845
criteria. FPR1 0.868
It is quite evident from Table 2 that the analyses of the first three Familiarity FPR2 0.912 0.938 0.791
criteria revealed acceptable result. The indicator reliability has been FPR3 0.927
achieved through indicator loadings of
.40, except for two items in FPR4 0.848
measuring compliance and one item in measuring resistance to political RPP_2 0.815
pressure whose loading is less than the recommended threshold and Resistance to Political Pressure RPP_3 0.889 0.919 0.791
therefore, deleted, as required in the PLS-SEM analysis. The items are RPP_4 0.940
CP2, CP4 and RPP 1. Likewise, the evaluation of the second criterion RPP_5 0.928
produced interesting results. All the variables achieved the cut-off values PRO1 0.870
of
.70 for composite reliability. It is also clear that the requirement of
Professionalism PRO2 0.939 0.941 0.800
convergent validity was also achieved as all the variables revealed an
PRO3 0.856
AVE of
.50. Table 3 presents the result of discriminant validity which
was evaluated using Fornell and Larcker's criterion.
It can be recalled that Fornell and Larcker criterion recommended
that to achieve the discriminant validity, the square-root of AVE of each Table 3. Discriminant validity (fornell and larcker criterion).
and every variable within the research model should be higher than its
squared correlation with any other variable within same model. The idea Constructs 1 2 3 4 5 6
is to ensure no co-linearity exist among the research variables and each Compliance 0.719
variable is fully independent and not performing a similar function with Ethical Behavior 0.677 0.761
any other variable within same model. Following this analysis as re- Enforcement 0.602 0.683 0.801
ported in Table 3, this requirement has been achieved. It can be Familiarity 0.596 0.613 0.490 0.889
concluded here that all the requirements of the measurement model have Professionalism 0.715 0.658 0.624 0.619 0.889
been fulfilled, implying the reliability and validity of the data for struc- Resistance of Political Pressure 0.121 0.079 -0.033 -0.027 0.069 0.894
tural analyses.

5.1.2. Analysis and results of PLS-SEM structural model influence on compliance with public procurement regulation, except for
It can be recalled from the methodology that five criteria were pro- enforcement which was found to be an insignificant predictor of
posed in the evaluation assessing the PLS-SEM structural model; (i) compliance and could be justified with the assertion that non-
evaluation ofthe significance of path coefficients for testing the research compliantscan devise highly sophisticated means of non-compliance
hypotheses, (ii) evaluation ofcoefficient of determination (R-squared), due to excessive enforcement (Kiama, 2014).
(iii) effect size of each exogenous variable on the endogenous variables, For the new paths, it can be recalled that hypothesis one proposed
(iv) evaluation of predictive relevance of the model, and lastly (v) eval- ethical behavior to mediate the relationship between professionalism and
uation of the strength of mediating effects. The results of these analyses compliance with public procurement regulations. The result supports this
are presented in Tables 4, 5, 6, 7, and 8. postulation (β ¼ 0.161, t ¼ 2.010,p ¼ 0.047). It implied that ethical
It is important to note that the results support all the direct paths behavior is the strategic mechanism through which professionalism can
tested in the earlier studies. Professionalism, familiarity, resistance to influence compliance with public procurement of regulation. In Table 8,
political pressure and ethical behavior portrays a significant and positive ethical behavior accounts for 24.5% of the influence of professionalism

7
D.I. Sarawa, A. Mas'ud Heliyon 6 (2020) e03132

Table 4. Testing the significance of path coefficient for Hypotheses testing.

Relationship Beta SE t-stat p- value Decision Remark

Professionalism -> Compliance 0.497 0.106 4.709 0.000*** Supported Direct paths tested in previous research
Familiarity -> Compliance 0.113 0.066 1.701 0.046** Supported
Enforcement -> Compliance 0.095 0.089 1.066 0.144 Not Supported
Resistance to Political Pressure -> Compliance 0.080 0.060 1.317 0.095* Supported
Ethical Behavior -> Compliance 0.214 0.096 2.233 0.014** Supported
Professionalism -> Ethical Behavior -> Compliance 0.161 0.080 2.010 0.047** Supported Strategic Paths hypothesized and tested in this study
Familiarity -> Ethical Behavior -> Compliance 0.187 0.061 3.078 0.003*** Supported
Enforcement -> Ethical Behavior -> Compliance 0.283 0.063 4.461 0.000*** Supported
Resist. Pol. Pre. -> Ethical Behavior -> Compliance 0.053 0.080 0.670 0.504 Not Supported

Note. Resist. Pol. Pre ¼ Resistance to Political Pressure; SE ¼ Standard Error; *significant at 10%; ** significant at 5%; ***significant at 1%.

0.283, t ¼ 4.461, p ¼ 0.000). The result confirmed the proposition that

Table 5. Coefficient of determination (R-squared). ethical behavior is the strategic mechanism through which enforcement
influences compliance with public procurement regulations. This could
Endogenous Construct R-squared be confirmed from Table 8 in which ethical behavior accounts for 74.9%
Compliance 0.660 of the influence of enforcement on public procurement regulation.
Ethical Behavior 0.604 Contrarily, the result does not support the postulation of hypothesis four
which proposed that ethical behavior mediates the relationship between
resistance to political pressure and compliance with public procurement
regulations (β ¼ 0.053, t ¼ 0.670, p ¼ 0.504). The result implied that
Table 6. Effect sizes (f 2). ethical behavior does not serve as a strategic mechanism through which
Exogenous Constructs Endogenous Constructs
resistance to political pressure could influence compliance. This could be
possible as politicians could exercise powerful means against public
Compliance Ethical Behavior
procurement officers to get their ends met. Consequently, the variance
f-squared (f 2) Effect f-squared (f 2) Effect accounted by the resistance to political pressure should not be computed,
Enforcement 0.009 Very Small 0.232 Medium in line with recommendation of Hair et al. (2013, 2016). Having pre-
Familiarity 0.021 Small 0.114 Small sented the results of the significance of the path coefficients, the results of
Professionalism 0.323 Medium 0.061 Small the coefficient of determination is presented in Table 5.
Resistance to Political Pressure 0.015 Very Small 0.015 Very Small It can be deduced from Table 5 that the variables composed in the
Ethical Behavior 0.047 Small strategic model of public procurement compliance (professionalism, fa-
miliarity, enforcement, resistance to political pressure and ethical
behavior) through both direct and mediating effects accounts for 66% of
the changes in the compliance with public procurement regulations. It is
Table 7. Predictive relevance (Q2). also revealed that professionalism, familiarity, enforcement, and resis-
tance to political pressure accounts for 60.4% of the changes in ethical
Endogenous Construct SSO SSE 1-SSE/SSO
behavior. Generally, the R-squared values of the two constructs are
Compliance 1750.000 1201.072 0.314
higher than the moderate value of 50% based on the classification of Hair
Ethical Behavior 625.000 428.272 0.315
et al. (2011). To further understand the specific effects of the exogenous
on the endogenous variables, the effectsizes have been analyzed in
Table 6.
It is evident from Table 5 that the effects of enforcement, familiarity,
Table 8. Strength of the mediation effect (variance accounted for).
professionalism, resistance to political pressure and ethical behavior on
Relationships Direct Indirect Total VAF Strength compliance with public procurement regulation are 0.009, 0.021, 0.323,
Professionalism -> Ethical 0.497 0.161 0.658 0.245 Partial Mediation 0.015 and 0.047, which can be classified as very small, small, medium,
Behavior -> Compliance very small and small, respectively. Likewise, the effects of enforcement,
Familiarity -> Ethical 0.113 0.187 0.300 0.625 Partial Mediation familiarity, professionalism and resistance to political pressure on ethical
Behavior -> Compliance behavior are 0.232, 0.114, 0.061, and 0.015 which can be classified as
Enforcement -> Ethical 0.095 0.283 0.378 0.749 Partial Mediation medium, small, small and very small, respectively. Following the pre-
Behavior -> Compliance
sentation of the effect sizes is the result of predictive relevance of the
Note. VAF ¼ Variance Accounted For. strategic model as contained in Table 7.
The result of model predictive relevance presented in Table 7
confirmed that the strategic public procurement compliance model pre-
on compliance. The result also supports hypothesis two which postulated
sented here has predictive relevance. To evaluate the extent to which
that ethical behavior mediates the relationship between familiarity and
ethical behavior mediates all the hypothesized relationships, the assess-
compliance with public procurement regulations (β ¼ 0.187, t ¼ 3.078, p
ment of the strength of the mediation effect through Variance Accounted
¼ 0.003). It implied that ethical behavior is the strategic mechanism
For (VAF) was computed in Table 8.
through which familiarly influences compliance with public procure-
It can be seen from Table 8that ethical behavior is a partial mediator
ment regulations. This can be confirmed from Table 8, which revealed
on the influence of professionalism, familiarity, and enforcement on
that ethical behavior accounts for 62.5% of the influence of familiarly on
compliance with public procurement regulation as it accounted for
compliance. Consistent with hypothesis three, the result also supports the
24.5%, 62.5%, and 74.9% accordingly on the influence of these variables
postulation that ethical behavior mediates the relationship between
on public procurement regulatory compliance.
enforcement and compliance with public procurement regulations (β ¼

8
D.I. Sarawa, A. Mas'ud Heliyon 6 (2020) e03132

6. Discussions and conclusions suggested cutoff values of 0.02, 0.15 and 0.35 recommended by Cohen
(1988), except for enforcement and resistance to political pressure which
This paper proposes and validates the strategic public procurement present slightly lower effect sizes. However, following Hair et al. (2013),
regulatory compliance model with mediation effect of ethical behavior. It that does not mean there are no effects since there are values attached to
is important noting that the methodology deployed for measurement of it, only that it is slightly lower than the recommended value. The pre-
variables and data collection as well as the size of the sample has been dictive relevance of the model which was assessed using the recom-
consistent with the previous research (Abere and Muturi, 2015; Omag- mendation of Geisser (1974) and Stone (1974) confirmed that the model
bon, 2016; Osei-Tutu et al., 2011). In terms of analyses, different from the has predictive relevance as the Q2 is above zero. It implied that the model
earlier studies,PLS-SEM was deployed as a method of data analysis could be able to predict compliance with public procurement regulation
mainly due to the strategic and complex nature of te model which in- through the mediating effect of ethical behavior. The strength of medi-
tegrates mediating effects. Using alternative analytical software used in ation effect which was assessed using the recommended valued of: VAF is
the previous studies would require running of the analyses in three <20%; VAF
20% to 80%, and >80%, confirmed the partial mediation
stages: first, the direct influence of the independent variables on the of ethical behavior in three out of four hypothesized mediation re-
mediator; second, the direct effect of the mediator on the dependent lationships. The only exception was resistance to political pressure which
variable andlastly, the computation of the mediation effect. However, ethical behavior was very weak in mediating its relationship with public
PLS-SEM enables the computation of all these paths concurrently. It is procurement regulatory compliance. This could be due to a weak direct
important to also note that the reliability and validity of the measures effect of resistance to political pressure on public procurement regulatory
were also ensured through the measurement model evaluation before compliance reported in the first part of Table 4. This implied that pro-
testing the hypotheses. Establishing these reliable and valid measure- curement officers find it harder to ensure strong resistance to political
ments is a pre-condition for the structural model analyses and measure- pressure leading to weaker ethical conduct and inability to strongly
ment model evaluation is a pre-requisite to structural model evaluation enforce compliance.
(Hair et al., 2011, 2013, 2016). The strategic public procurement regulatory compliance model have
In terms of the structural model, the hypotheses were tested using both policy, theoretical and future research implications. In terms of
5000 bootstrapped samples with 125 cases as required for PLS-SEM an- policy, the model clearly implied that the development of ethical
alyses (Hair et al., 2011, 2013, 2016). It is also critical to report that the behavior among public procurement officers, practitioners and pro-
paths tested in the previous studies were also confirmed here. Consistent fessionals through effective training using professional code of ethics-
with earlier studies, the influence of professionalism on compliance was should be the strategic issue of concern by both policymakers and
supported (Gelderman et al., 2006; Jaafar et al., 2016; Jones et al., 2015; professional bodies. This will result in moulding their behavior towards
Mrope, 2017; Mwelu et al., 2018; Omagbon, 2016; Sandada and Kam- moral reasoning. When this is achieved, the compliance with public
barami, 2016), as well as the influence of familiarty (Eyaa and Oluka, procurement regulation would ultimately be high. The study also have
2011; Gelderman et al., 2006; Sandada and Kambarami, 2016; Mwelu implications to theory. One basic question to ask is the extent to which
et al., 2018). However, the influence of enforcement on compliance ethical behavior brings more "strategic" value to the original model. It is
contradicts earlier studies such as Gunningham and Kagan (2005), important to note that adding the mediator “ethical behavior” brings
Imperato (2005), Zubcic and Sims (2011) as well as Sandada and Kam- “strategic value” to the policymakers and public procurement profes-
barami (2016), though it cannot be surprising based on the assertion of sional bodies to simply understand that despite several factors influ-
Kiama (2014) who complied that excessive enforcement make encing public procurement regulatory compliance, ethical behavior is
non-compliants devise sophisticated means to avoid compliance with identified here as the key variable through rigorous mediation analyses
regulations. Resistance to political pressure was also found to have a using partial least squares. In fact, the key players in the application of
significant positive influence on compliance. It is consistent with earlier this analytical technique suggest that its application leads to identifying
studies which found political interference to have a positive influence on the “key driver construct” (Hair et al., 2011:144). This means identifi-
non-compliance with public procurement regulations (Jones et al., 2015; cation of ethical behavior as a mediator gives a clear “policy direction”
Chikwere et al., 2019). Finally, the direct influence of ethical behavior which signifies that policymakers need to focus on enhancing the
also conforms to extant literature whereby it was found to have a sig- “personal ethical traits of the procurement officers” to easily achieve the
nificant and positive influence on compliance (Sandada and Kambarami, goal of regulatory compliance. It shows that “good personal ethical
2016). traits” is the key mechanism and the reason why variables such as
For the new paths hypothesized and tested in these study, all were professionalism, familiarity, enforcement and resistance to political
found to be significant, except that ethical behavior failed to mediate the pressure influences public procurement regulatory compliance. There-
influence of resistance to political pressure on compliance. Specifically, fore, the development of moral values among public procurement offi-
the results revealed that ethical behavior is the strategic mechanism cers should be given priority by the policymakers and practionners. This
through which professionalism, familiarity and enforcement influence could be achieved through professional development, development of
public procurement regulatory compliance as it accounts for 24.5%, code of ethics to guide their conducts, enforcement and on the job
62.6% and 74.9% of the influence of these variables respectively on training.
compliance. This interesting discovery and validation of the framework This policy contribution is in line with the assertion of previous
can be supported by the emphasis given from the previous researchers on studies such as Tukamuhabwa (2012), who conceptualized moral obli-
the role of ethical and moral behaviors in the procurement procedures gations which may include ethical behavior as a potential mediator be-
and processes (Fourie, 2017; Saini, 2010; Sandada and Kambarami, tween perceived rule legitimacy and public procurement regulatory
2016). compliance. It is also consistent with the view of Zitha and Mathebula
It is critical to report that in addition to the hypotheses testing, the (2015) who stressed that ethical conduct is the centerpiece of procure-
other four criteria for evaluation of structural model revealed interesting ment and can be used as a tool to reconstruct the government's integrity
results that met the suggested threshold values. The coefficients of in public procurement. The identification of ethical behavior as a key
determination (R-squared) were revealed good results based on the policy variable is also in congruence to Chikwere et al. (2019) who
suggested threshold values of 0.25, 0.50 and 0.75, classified by Hair et al. suggested the need to understand the root cause of non-compliance so as
(2011) as small, moderate and substantial, respectively. More so, the to help policymakersdirect policies towards addressing non-compliance
coefficient of determination of the current study is more than moderate in public procurement issues in developing countries.
threshold of .50 (Hair et al., 2011, 2013, 2016). The effect sizes of the It widens the understanding of Socio-economic Thoery of Regulatory
exogenous variables on the endogenous variables are within the Compliance in two ways. First, the study validates the theory through

9
D.I. Sarawa, A. Mas'ud Heliyon 6 (2020) e03132

structural analaysis using PLS-SEM, and secondly, it expandsthe scope of Cunningham, N., Kagan, R.A., 2005. Regulation and business behavior. Law Policy 27,
213–218.
theory through the integration of mediation effect ethical behavior. This
Eyaa, S., Oluka, P.N., 2011. Explaining non-compliance in public procurement in Uganda.
research brings about the importance of “intrinsic value” which was Int. J. Bus. Soc. Sci. 2 (11), 35–44.
ignored by the literature as a mediator and thereby, elaborates the Fincham, J.E., 2008. Response rates and responsiveness for surveys, standards, and the
"strategic value" of this new model. As such, future research could explore Journal. Am. J. Pharmaceut. Educ. 72 (2), 43.
Fornell, C., Larcker, D.F., 1981. Evaluating structural equation models with unobservable
the use of other mediators apart from ethical behavior in understanding variables and measurement error. J. Mark. Res. 18 (1), 39–50.
the strategic mechanism that explains why the direct effects of profes- Fourie, D., 2017. Ethics and integrity in the procurement of goods and services for the
sionalism, familiarity, enforcement and political interference have been military. Public Integr. 19 (5), 469–482.
Frey, B.S., 1997. Not Just for the Money: an Economic Theory of Personal Motivation.
relatively consistent across settings. The fact is that this study only es- Edward Elgar, Cheltenham, 1997.
tablishes partial mediation effects and not full mediation of ethical Geisser, Seymour, 1974. A predictive approach to the random effects model. Biometrika
behavior in those relationships. Additionally, confirming the mediation 61 (1), 101–107.
Gelderman, C.J., Ghijsen, P.W.T., Brugman, M.J., 2006. Public procurement and EU
effect of ethical behaviors indicates that public procurement literature tendering directives–explaining non-compliance. Int. J. Public Sect. Manag. 19 (7),
could explore additional moderators and mediator variables based on the 702–714.
methodological guides of Baron and Kenny (1986) depending on the Gunningham, N., Kagan, R.A., 2005. Regulation and business behaviour. Law Policy 27,
213–218.
existence of consistent or inconsistent results among the existing Hair, J.F., Ringle, C.M., Sarstedt, M., 2011. PLS-SEM: indeed a silver bullet. J. Mark.
empirical studies. This means that theintegration of this intervening Theory Pract. 18 (2), 139–152.
variables could be made in other compliance theories which can be Hair, J.F., Hult, G.T.M., Ringle, C., Sarstedt, M., 2013. A Primer on Partial Least Squares
Structural Equation Modeling (PLS-SEM). Sage Publications, Incorporated, Thousand
applied in public procurement regulator compliance such as the Theory
Oaks, CA.
of Planned Behavior (TPB) of Ajzen (1991), Motivation Crowding Theory Hair, J.F., Hult, G.T.M., Ringle, C., Sarstedt, M., 2016. A Primer on Partial Least Squares
(MCT) of Frey (1997) as well as Motivational Posturing Theory (MPT) of Structural Equation Modeling (PLS-SEM). Sage Publications, Incorporated, Thousand
Braithwaite et al. (2007) among other relevant theories. Oaks, CA.
Henseler, J., Ringle, C.M., Sinkovics, R.R., 2009. The use of partial least squares path
modeling in international marketing. Adv. Int. Market. 20, 277–319.
Declarations Hui, W.S., Othman, R.O., Norman, O., Rahman, R.A., Haron, N.H., 2011. Procurement
issues in Malaysia. Int. J. Public Sect. Manag. 24 (6), 567–593.
Hunja, R.R., 2003. Obstacles to public procurement reform in developing countries.
Author contribution statement Public Procure: Cont. Revolut. Kluwer Law Int. 13–22.
Hyacinth, D.D., Yibis, M.G., 2017. Factors influencing compliance with Nigeria's public
Dauda Ibrahim Sarawa: Conceived and designed the experiments; procurement act in Kaduna polytechnic. Int. J. Entrepreneurial Dev. Educ. Sci. Res. 4
(1), 14–30.
Performed the experiments; Wrote the paper. Imperato, G.L., 2005. Corporate crime, responsibility, compliance and governance.
Abdussalam Mas'ud: Analyzed and interpreted the data; Contributed J. Health Care Compliance 7 (3), 11–19.
reagents, materials, analysis tools or data; Wrote the paper. Jaafar, M.R., Aziz, S.A., Ramli, N.M., 2016. The roles of compliance with government
procurement policy: moderating the effects between explanatory factors and
sustainable public procurement practice. J. Pengurusan (UKM Journal of
Funding statement Management) 48 (2016), 89–98.
Jones, B., Joel, C., Bonuke, R., 2015. Employee perceived interference and professional
ethics on non-compliance with public procurement regulations, evidence from Kenya.
Dauda Ibrahim Sarawa received funding to support data collection Eur. J. Bus. Manag. 7 (5), 96–105.
and research. Kiama, G.P., 2014. Factors affecting implementation of public procurement act in SACCO
societies in Kenya. Int. J. Acad. Res. Bus. Soc. Sci. 4 (2), 169–194.
Krejcie, R.V., Morgan, D.W., 1970. Determining sample size for research activities. Educ.
Competing interest statement Psychol. Meas. 30 (3), 607–610.
Mrope, N.P., 2017. The effect of professionalism on performance of procurement function
in the public sector: experience from the Tanzanian public entities. International
The authors declare no conflict of interest. Journal of Business and Management Review 5 (6), 48–59.
Mwangi, L.W., Kwasira, J., 2015. Assessment of effects of ethical practices on
performance of procurement function in state corporations: a case of state
Additional information
regulatory agencies in Nairobi county, Kenya. Int. J. Econ. Commer. Manag 3 (10),
485–499.
Supplementary content related to this article has been published Mwelu, N., Davis, P.R., Ke, Y., Watundu, S., 2018. Compliance within a regulatory
framework in implementing public road construction projects. Construct. Econ.
online at https://doi.org/10.1016/j.heliyon.2019.e03132.
Build. 18 (4), 1–10.
Nulty, D.D., 2008. The adequacy of response rates to online and paper surveys: what can
References be done? Assess Eval. High Educ. 33 (3), 301–314.
Nunnally, J.C., 1994. Psychometric Theory 3E. Tata McGraw-Hill Education.
Ogol, C.O., Moronge, M., 2017. Effects of ethical issues on procurement performance in
Abere, D.O., Muturi, W., 2015. Factors affecting compliance with the public procurement
public hospitals in Kenya: a case of kenyatta national referral hospital. Strateg. J. Bus.
and disposal regulations in Kenya, a case study of county government of Nyamira. Int.
J. Econ., Commer. Manag. 3 (11), 1060–1089. Change Manag. 4 (3), 787–805.
Omagbon, P., 2016. An assessment of compliance with the public procurement act by
Ajzen, I., 1991. The theory of planned behavior. Organ. Behav. Hum. Decis. Process. 50
(2), 179–211. Nigerian local government. J. Account. Financ. Manag. 2 (4), 1–10.
Osei-Tutu, E., Mensdah, S., Ameya, C., 2011. The Level of Compliance with the Public
Baron, R.M., Kenny, D.A., 1986. The moderator–mediator variable distinction in social
Procurement Act (Act 663) in Ghana.Management and Innovation for a Sustainable
psychological research: conceptual, strategic, and statistical considerations.
Built Environment, 20 – 23 June 2011, Amsterdam, The Netherlands.
J. Personal. Soc. Psychol. 51 (6), 1173–1183.
Ọ̀ wara, A., 2016. A Study into the Problems and Solution of the 2007 Public Procurement
Braithwaite, V., Murphy, K., Reinhart, M., 2007. “Regulatory styles, motivational postures
and nursing home compliance”; Valerie Braithwaite, Kristina Murphy, and Monika Act on Transparency and Accountability. Available online at: https://projectch
ampionz.com.ng/2016/10/17/2007-public-procurement-act-accountability/ (3rd
Reinhart, “Taxation threat, motivational postures, and responsive regulation”. Law
March, 2018).
Policy 29 (1), 137–158.
Saini, A., 2010. Purchasing ethics and inter- organizational buyer–supplier relational
Cardy, R.L., Selvarajan, T.T., 2006. Assessing ethical behavior: the impact of outcomes on
determinants: a conceptual framework. J. Bus. Ethics 95, 439–455.
judgment bias. J. Manag. Psychol. 21 (1), 52–72.
Chikwere, G.U., Simon, S.K., Dzandu, S.S.K., Dza, M., 2019. Compliance issues with Sandada, M., Kambarami, P., 2016. The determinants of the compliance to public
procurement policy requirements among public enterprises in Zimbabwe. Acta Univ.
public procurement regulations in Ghana. Int. J. Bus. Manag. 14 (5), 1–8.
Cohen, J., 1988. Statistical Power Analysis for the Behavioral Sciences, second ed. Danub. Adm. 8 (1).
Stone, M., 1974. Cross-validatory choice and assessment of statistical predictions. J. R.
Lawrence Erlbaum Associates, NJ, Hillsdale.
Stat. Soc. 36 (2), 111–147.
Coviello, D., Gagliarducci, S., 2017. Tenure in office and public procurement. Am. Econ.
Sutinen, J.G., Kuperan, K., 1999. A socio-economic theory of regulatory compliance. Int.
J. Econ. Policy 9 (3), 59–105.
J. Soc. Econ. 26 (1/2/3), 174–193.
Cuadrado-Ballesteros, B., Rodríguez-Ariza, L., García-Sanchez, I.M., Martínez-Ferrero, J.,
2017. The mediating effect of ethical codes on the link between family firms and their Tukamuhabwa, B.R., 2012. Antecedents and consequences of public procurement non-
compliance behavior. J. Econ. Behav. Stud 4 (1), 34–46.
social performance. Long. Range Plan. 50 (6), 756–765.

10
D.I. Sarawa, A. Mas'ud Heliyon 6 (2020) e03132

Zadawa, A.N., Hussin, A.A., Osmadi, A., 2015. Determinants of compliance with public Zubcic, J., Sims, R., 2011. Examining the link between enforcement activity and
procurement guidelines in the Nigerian construction industry. J. Teknol. 75 (9), corporate compliance by Australian companies and the implications for regulators.
107–110. Int. J. Law Manag. 53 (4), 299–308.
Zitha, H.E., Mathebula, N.E., 2015. Ethical conduct of procurement officials and
implications on service delivery: a case study of Limpopo provincial treasury. Public
Munic. Financ. 4 (3), 16–24.

11