PUBLIC PROCUREMENT COMPLIANCE BEHAVIOR AND ITS EFFECT ON QUALITY SERVICE DELIVERY: A CASE STUDY OF THE ELECTRICITY COMPANY OF GHANA (ECG)
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Keywords:
Public Procurement Compliance Behaviour, Quality Service DeliveryAbstract
Purpose: The aim of this study is to examine public procurement compliance behaviour and contrast its effect on quality service delivery.
Methodology: The study adopted an explanatory research design in order to achieve the study objectives. The population for this research was made up of the employees of ECG and the customers of ECG, who were systematically sampled. Data was then analyzed through descriptive statistics using the Statistical Package for Social Science. The study employed descriptive statistics, multivariate data analysis as well as regression models
Results: Compliance levels were just low in the ranks of ECG; about 15.9%. Non-compliance complements this score by recording an alarming 84.1%. This level of compliance is unacceptable by any standard, no matter how it is justified. A key informant reported that the benefits of non-compliance go to feed the greed of many people in the procurement process. Procurement processes have been owned or possessed by some powerful and influential people who are insulated from the repercussions of poor compliance or, in some cases, non-compliance. Another key informant said “non-compliance has been institutionalized and therefore hard to be isolated and addressed properly”.
Unique contribution to theory, practice and policy: The study recommends that it would be necessary to strategically work at improving compliance levels through professional procurement training, monitoring of processes for adherence to established policies and standard operating procedures including independent auditing. This process may be slow, drastic and painful; heads may have to roll, reshuffles in leadership and management and forensic audits are needed to prune the past procurement activities that were out of line. To improve service quality, ECG would have to isolate the dimensions that were noted to be weak; being empathy and responsiveness. These may be addressed by professional training and retraining front line personnel and technical rapid response teams to address the concerns of customers with urgency and a human face. Better monitoring and supervision would help to sustain this line of response among ECG stuff.
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References
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Anderson, E.W. and Mittal, V., 2000. Strengthening the satisfaction-profit chain. Journal of Service research, 3(2), pp.107-120.
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Babbie, E. R. (2004). The Practice of Social Research (10th ed.). Belmont, CA: Wadsworth Thomson Learning.
Berry, L.L., Zeithaml, V.A. & Parasuraman, A., 1990. Five Imperatives For Improving Service Quality. MIT Sloan Management Review, 31(4), pp.29–38.
Blaikie, N. (2010). Designing social research (2nd ed.). Cambridge: Polity Press.
Boateng, R. (2014). Research made easy. Accra: PearlRichards Foundation.
Brandon-Jones, A. & Carey, S., 2011. The impact of user-perceived e-procurement quality on system and contract compliance. Intl Journal of Operations & Production Management, 31(3), pp.274–296. Available at: http://opus.bath.ac.uk/23801/2/BrandonJones_IJOPM_2011_31_3_274.doc.
Bryman, A. (2007). Barriers to integrating quantitative and qualitative research. Journal of mixed methods research, 1(1), 8-22.
Büchner, S., Freytag, A., González, L.G. and Güth, W., 2008. Bribery and public procurement: an experimental study. Public Choice, 137(1-2), pp.103-117.
Caruana, A., Money, A.H. and Berthon, P.R., 2000. Service quality and satisfaction-the moderating role of value. European Journal of marketing, 34(11/12), pp.1338-1353.
Churchill, G. A., & Iacobucci, D. (2009). Marketing research: methodological foundations: Cengage Learning.
Comesa (2014) COMESA Annual Report 2004. http://www.comesa.int/comesa-annual-reports/.
Creswell, J. W. (2014). Research design. Qualitative, quantitative and mixed methods approaches (4th ed.). Thousand Oaks, CA: Sage publications.
Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. psychometrika, 16(3), 297-334.
Dalpé, R., 1994. Effects of government procurement on industrial innovation. Technology in Society, 16(1), pp.65–83.
De Mariz, C. L., Ménard, C., & Abeillé, B. 2014. Public procurement reforms in Africa: Challenges in institutions and governance. Oxford University Press, USA.
Denzin, N.K. and Lincoln, Y., 2000. Qualitative research. Thousand Oaks ua, pp.413-427.
Denzin, N. K., & Lincoln, Y. S. (2000). Introduction: The discipline and practice of qualitative research. In N. K. Denzin & Y. S. Lincoln (Eds.), Handbook of qualitative research (2nd ed.) (pp. 1-28). Thousand Oaks: Sage.
DeVellis, R.F. (2003). Scale development: Theory and applications. Thousand Oaks, CA: Sage.
Di Mascio, R., 2007. A method to evaluate service delivery process quality. International Journal of Service Industry Management, 18(4), pp.418–442. Available at: http://www.scopus.com/inward/record.url?eid=2-s2.0-34547655398&partnerID=tZOtx3y1.
Eriksson, P.E. & Westerberg, M., 2011. Effects of cooperative procurement procedures on construction project performance: A conceptual framework. International Journal of Project Management, 29(2), pp.197–208.
Eyaa, S. & Oluka, P.N., 2011. Explaining Non- Compliance In Public Procurement In Uganda. International Journal of Business and Social Science, 2(11), p.n/a.
Gelderman, K., Ghijsen, P. & Schoonen, J., 2010. Explaining non-compliance with European Union Procurement Directives: A multidisciplinary perspective. Journal of Common Market Studies, 48(2), pp.243–264.
Ghanaweb, 2016. ECG over billing: Mahama calls for crisis meeting. http://www.ghanaweb.com/GhanaHomePage/NewsArchive/ECG-over-billing-Mahama-calls-for-crisis-meeting-442142.
Ghauri, P., & Gronhaug, K. (2005). Research methods in business studies: a practical guide (3rd ed.). Essex: Prentice Hall/Financial times.
Gibson, C., Hatfield School of Government Executive Master of Public Administration 2009 Cohort.
Gill, J., & Johnson, P. (1997). Research methods for managers (2nd ed.). London: Chapman.
Grandia, J., 2016. Finding the missing link: Examining the mediating role of sustainable public procurement behaviour. Journal of Cleaner Production, 124, pp.183–190.
Grönroos, C., 1984. A Service Quality Model and its Marketing Implications. European Journal of Marketing, 18(4), pp.36–44.
Hair, J. F., Anderson, R. E., Tatham, R. L., & William, C. (1998), Multivariate data analysis.
Hair, J. F., Black, W. C., Barbin, B. J., & Anderson, R. E. (2009). Multivariate Data Analysis. Upper Saddle River, NJ: Printice Hall.
Jamal, A., 2004. Retail banking and customer behaviour: a study of self concept, satisfaction and technology usage. The International Review of Retail, Distribution and Consumer Research, 14(3), pp.357-379.
Jeanette, R., 2008. Benchmarking in public procurement. Benchmarking: An International Journal, 15(6), pp.782–793.
Kang, B.-S., Cho, C.-H. & Baek, J.-D., 2007. The Effects of Service Quality on Customer Satisfaction in Case of Dissatisfied Customers. Asian Journal on Quality, 8, pp.27–39.
Kelman, H.C., 1958. Compliance, identification, and internalization: Three processes of attitude change. Journal of conflict resolution, pp.51-60.
Kidd, A., 2005. The Definition of Procurement. Chartered Institute of Purchasing and Supply Australia, pp.1–7. Available at: https://www.cips.org/Documents/CIPSAWhitePapers/2006/Definition_of_Procurement.pdf [Accessed August 17, 2016].
Kipchilat, G. T. 2006. An evaluation of the impact of the public procurement regulations on procurement in Kenyan public universities. Unpublished MBA Project. Egerton University, Nakuru Kenya.
Liliander, V. & Mattsson, J. (2002). Impact of customer preconsumption mood on the evaluation of employee behavior in service encounters. Psychology and Marketing, 19(10), 837-60.
Malhotra, N. K., & Birks, D. F. (2007). Marketing research: An applied approach. (3rd ed.). Spain: Pearson Educational Limited.
Malhotra, N., & Birks, D. (2006). Marketing Research: An Applied Approach. Updated 2nd European edn. Prentice Hall, Pearson Education
Mccrudden, C., 2004. Using public procurement to achieve social outcomes. Natural Resources Forum, 28(28), pp.257–267.
McGivern, Y. (2013). The practice of market research: an introduction. Pearson Higher Ed.
Migiro, S.O., 2010. Public sector procurement and black economic empowerment in South Africa: Challenges of preferential procurement and decentralisation of the provincial tender board. Journal of Social Development in Africa, 25(2), pp.177–195.
Morris, T. and Wood, S., 1991. Testing the survey method: continuity and change in British industrial relations. Work, Employment & Society, 5(2), pp.259-282.
Neuman, W. L. (2006). Analysis of qualitative data. Social research methods: Qualitative and quantitative approaches, 457-489.
Newman, I., & Benz, C. R. (1998). Qualitative-quantitative research methodology: Exploring the interactive continuum. SIU Press.
Ntayi, M. J., Ngoboka, P., Mutebi, H. and Sitenda, G., 2012. Social value orientation and regulatory compliance in Ugandan public procurement. International Journal of Social Economics, 39(11), pp.900-920.Osei-Tutu, E., Mensah, S. & Ameyaw, C., 2011. The Level Of Compliance With The Public Procurement Act (Act 663) in Ghana. In Management and Innovation for a Sustainable Built Environment. pp. 1–14. Available at: http://misbe2011.fyper.com/proceedings/documents/249.pdf.
Oliver, R.L., Rust, R.T. and Varki, S., 1997. Customer delight: foundations, findings, and managerial insight. Journal of retailing, 73(3), pp.311-336.
Pallant, J. (2011). SPSS survival manual a step by step guide to data analysis using SPSS (4th ed.). Crows Nest: Allen & Owen.
Parasuraman, A., Zeithaml, V.A. and Berry, L.L., 1985. A conceptual model of service quality and its implications for future research. the Journal of Marketing, pp.41-50.
Parasuraman, A.Z., 1988. SERVQUAL: Journal of Retailing, 64, pp.12–40.
Peterson, A. R. (2000). Constructing effective questionnaires. Thousand Oaks, CA: Sage Publications.
Pettigrew, T.F., 2010. Herbert C Kelman: A tribute. Peace and Conflict: Journal of Peace Psychology, 16(4), pp.341–348.
Reeves, T.C., Herrington, J. and Oliver, R., 2005. Design research: A socially responsible approach to instructional technology research in higher education. Journal of Computing in Higher Education, 16(2), pp.96-115.
Shafii, Z. & Khafafa, A.J., 2013. Customer Satisfaction and Islamic Banking Awareness in the Islamic Banking Window System in Libya. Middle-East Journal of Scientific Research, 13, pp.12–17.
Singh, R. & Khanduja, D., 2010. SERVQUAL and model of service quality gaps: A framework for determining and prioritizing critical factors from faculty perspective in higher education. International Journal of Engineering Science and Technology, 2, pp.3297–3304.
Tadelis, S., 2012. Public procurement design: Lessons from the private sector. International Journal of Industrial Organization, 30(3), pp.297–302.
Thai, K. V., 2001. Public Procurement Re-examined. Journal of Public Procurement, 1(1), pp.9–50.
The World Bank, 1995. The World Bank annual report 1995 (English). http://documents.worldbank.org/curated/en/179751468314378230/The-World-Bank-annual-report-1995.
Tukamuhabwa, B.R., 2012a. Antecedents and Consequences of Public Procurement Non-compliance Behavior. Journal of Economics & Behavioral Studies, 4(1), pp.34–46.
Tukamuhabwa, B.R., 2012b. Antecedents and Consequences of Public Procurement Non-compliance Behavior. Journal of Economics & Behavioral Studies, 4(1), pp.34–46. Available at: http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=74607733&site=eds-live&authtype=shib.
Uyarra, E. et al., 2014. Barriers to innovation through public procurement: A supplier perspective. Technovation, 34(10), pp.631–645.
Uyarra, E. & Flanagan, K., 2010. Understanding the Innovation Impacts of Public Procurement. Manchester Business School, 18(November 2014), pp.123–143.
Walker, H. & Brammer, S., 2012. The relationship between sustainable procurement and e-procurement in the public sector. International Journal of Production Economics, 140(1), pp.256–268.
Wisker, G. (2001). The postgraduate research handbook. New York: Palgrave.Morris, T., & Wood, S. (1991). Testing the survey method: continuity and change in British industrial relations. Work, Employment & Society, 5(2), 259-282.
World Bank, 2003. World Development Report 2003. http://elibrary.worldbank.org/doi/abs/10.1596/0-8213-5187-7
Zeithaml, V.A., 1988. Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence. The Journal of marketing, pp.2-22.
Agbesi, M.K., 2009. Compliance assessment of the public procurement act, 2003 (act663)–case study of selected government institution in the eastern region (Doctoral dissertation).
Anderson, E.W. and Mittal, V., 2000. Strengthening the satisfaction-profit chain. Journal of Service research, 3(2), pp.107-120.
Anvuur, A., Kumaraswamy, M. & Male, S., 2006. Taking forward public procurement reforms in Ghana. In CIB W107 Construction in Developing Economies International Symposium, “Construction in Developing Economies: New Issues and Challenges.” p. CD Rom 9 pages. Available at: http://discovery.ucl.ac.uk/20491/.
Babbie, E. R. (2004). The Practice of Social Research (10th ed.). Belmont, CA: Wadsworth Thomson Learning.
Berry, L.L., Zeithaml, V.A. & Parasuraman, A., 1990. Five Imperatives For Improving Service Quality. MIT Sloan Management Review, 31(4), pp.29–38.
Blaikie, N. (2010). Designing social research (2nd ed.). Cambridge: Polity Press.
Boateng, R. (2014). Research made easy. Accra: PearlRichards Foundation.
Brandon-Jones, A. & Carey, S., 2011. The impact of user-perceived e-procurement quality on system and contract compliance. Intl Journal of Operations & Production Management, 31(3), pp.274–296. Available at: http://opus.bath.ac.uk/23801/2/BrandonJones_IJOPM_2011_31_3_274.doc.
Bryman, A. (2007). Barriers to integrating quantitative and qualitative research. Journal of mixed methods research, 1(1), 8-22.
Büchner, S., Freytag, A., González, L.G. and Güth, W., 2008. Bribery and public procurement: an experimental study. Public Choice, 137(1-2), pp.103-117.
Caruana, A., Money, A.H. and Berthon, P.R., 2000. Service quality and satisfaction-the moderating role of value. European Journal of marketing, 34(11/12), pp.1338-1353.
Churchill, G. A., & Iacobucci, D. (2009). Marketing research: methodological foundations: Cengage Learning.
Comesa (2014) COMESA Annual Report 2004. http://www.comesa.int/comesa-annual-reports/.
Creswell, J. W. (2014). Research design. Qualitative, quantitative and mixed methods approaches (4th ed.). Thousand Oaks, CA: Sage publications.
Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. psychometrika, 16(3), 297-334.
Dalpé, R., 1994. Effects of government procurement on industrial innovation. Technology in Society, 16(1), pp.65–83.
De Mariz, C. L., Ménard, C., & Abeillé, B. 2014. Public procurement reforms in Africa: Challenges in institutions and governance. Oxford University Press, USA.
Denzin, N.K. and Lincoln, Y., 2000. Qualitative research. Thousand Oaks ua, pp.413-427.
Denzin, N. K., & Lincoln, Y. S. (2000). Introduction: The discipline and practice of qualitative research. In N. K. Denzin & Y. S. Lincoln (Eds.), Handbook of qualitative research (2nd ed.) (pp. 1-28). Thousand Oaks: Sage.
DeVellis, R.F. (2003). Scale development: Theory and applications. Thousand Oaks, CA: Sage.
Di Mascio, R., 2007. A method to evaluate service delivery process quality. International Journal of Service Industry Management, 18(4), pp.418–442. Available at: http://www.scopus.com/inward/record.url?eid=2-s2.0-34547655398&partnerID=tZOtx3y1.
Eriksson, P.E. & Westerberg, M., 2011. Effects of cooperative procurement procedures on construction project performance: A conceptual framework. International Journal of Project Management, 29(2), pp.197–208.
Eyaa, S. & Oluka, P.N., 2011. Explaining Non- Compliance In Public Procurement In Uganda. International Journal of Business and Social Science, 2(11), p.n/a.
Gelderman, K., Ghijsen, P. & Schoonen, J., 2010. Explaining non-compliance with European Union Procurement Directives: A multidisciplinary perspective. Journal of Common Market Studies, 48(2), pp.243–264.
Ghanaweb, 2016. ECG over billing: Mahama calls for crisis meeting. http://www.ghanaweb.com/GhanaHomePage/NewsArchive/ECG-over-billing-Mahama-calls-for-crisis-meeting-442142.
Ghauri, P., & Gronhaug, K. (2005). Research methods in business studies: a practical guide (3rd ed.). Essex: Prentice Hall/Financial times.
Gibson, C., Hatfield School of Government Executive Master of Public Administration 2009 Cohort.
Gill, J., & Johnson, P. (1997). Research methods for managers (2nd ed.). London: Chapman.
Grandia, J., 2016. Finding the missing link: Examining the mediating role of sustainable public procurement behaviour. Journal of Cleaner Production, 124, pp.183–190.
Grönroos, C., 1984. A Service Quality Model and its Marketing Implications. European Journal of Marketing, 18(4), pp.36–44.
Hair, J. F., Anderson, R. E., Tatham, R. L., & William, C. (1998), Multivariate data analysis.
Hair, J. F., Black, W. C., Barbin, B. J., & Anderson, R. E. (2009). Multivariate Data Analysis. Upper Saddle River, NJ: Printice Hall.
Jamal, A., 2004. Retail banking and customer behaviour: a study of self concept, satisfaction and technology usage. The International Review of Retail, Distribution and Consumer Research, 14(3), pp.357-379.
Jeanette, R., 2008. Benchmarking in public procurement. Benchmarking: An International Journal, 15(6), pp.782–793.
Kang, B.-S., Cho, C.-H. & Baek, J.-D., 2007. The Effects of Service Quality on Customer Satisfaction in Case of Dissatisfied Customers. Asian Journal on Quality, 8, pp.27–39.
Kelman, H.C., 1958. Compliance, identification, and internalization: Three processes of attitude change. Journal of conflict resolution, pp.51-60.
Kidd, A., 2005. The Definition of Procurement. Chartered Institute of Purchasing and Supply Australia, pp.1–7. Available at: https://www.cips.org/Documents/CIPSAWhitePapers/2006/Definition_of_Procurement.pdf [Accessed August 17, 2016].
Kipchilat, G. T. 2006. An evaluation of the impact of the public procurement regulations on procurement in Kenyan public universities. Unpublished MBA Project. Egerton University, Nakuru Kenya.
Liliander, V. & Mattsson, J. (2002). Impact of customer preconsumption mood on the evaluation of employee behavior in service encounters. Psychology and Marketing, 19(10), 837-60.
Malhotra, N. K., & Birks, D. F. (2007). Marketing research: An applied approach. (3rd ed.). Spain: Pearson Educational Limited.
Malhotra, N., & Birks, D. (2006). Marketing Research: An Applied Approach. Updated 2nd European edn. Prentice Hall, Pearson Education
Mccrudden, C., 2004. Using public procurement to achieve social outcomes. Natural Resources Forum, 28(28), pp.257–267.
McGivern, Y. (2013). The practice of market research: an introduction. Pearson Higher Ed.
Migiro, S.O., 2010. Public sector procurement and black economic empowerment in South Africa: Challenges of preferential procurement and decentralisation of the provincial tender board. Journal of Social Development in Africa, 25(2), pp.177–195.
Morris, T. and Wood, S., 1991. Testing the survey method: continuity and change in British industrial relations. Work, Employment & Society, 5(2), pp.259-282.
Neuman, W. L. (2006). Analysis of qualitative data. Social research methods: Qualitative and quantitative approaches, 457-489.
Newman, I., & Benz, C. R. (1998). Qualitative-quantitative research methodology: Exploring the interactive continuum. SIU Press.
Ntayi, M. J., Ngoboka, P., Mutebi, H. and Sitenda, G., 2012. Social value orientation and regulatory compliance in Ugandan public procurement. International Journal of Social Economics, 39(11), pp.900-920.Osei-Tutu, E., Mensah, S. & Ameyaw, C., 2011. The Level Of Compliance With The Public Procurement Act (Act 663) in Ghana. In Management and Innovation for a Sustainable Built Environment. pp. 1–14. Available at: http://misbe2011.fyper.com/proceedings/documents/249.pdf.
Oliver, R.L., Rust, R.T. and Varki, S., 1997. Customer delight: foundations, findings, and managerial insight. Journal of retailing, 73(3), pp.311-336.
Pallant, J. (2011). SPSS survival manual a step by step guide to data analysis using SPSS (4th ed.). Crows Nest: Allen & Owen.
Parasuraman, A., Zeithaml, V.A. and Berry, L.L., 1985. A conceptual model of service quality and its implications for future research. the Journal of Marketing, pp.41-50.
Parasuraman, A.Z., 1988. SERVQUAL: Journal of Retailing, 64, pp.12–40.
Peterson, A. R. (2000). Constructing effective questionnaires. Thousand Oaks, CA: Sage Publications.
Pettigrew, T.F., 2010. Herbert C Kelman: A tribute. Peace and Conflict: Journal of Peace Psychology, 16(4), pp.341–348.
Reeves, T.C., Herrington, J. and Oliver, R., 2005. Design research: A socially responsible approach to instructional technology research in higher education. Journal of Computing in Higher Education, 16(2), pp.96-115.
Shafii, Z. & Khafafa, A.J., 2013. Customer Satisfaction and Islamic Banking Awareness in the Islamic Banking Window System in Libya. Middle-East Journal of Scientific Research, 13, pp.12–17.
Singh, R. & Khanduja, D., 2010. SERVQUAL and model of service quality gaps: A framework for determining and prioritizing critical factors from faculty perspective in higher education. International Journal of Engineering Science and Technology, 2, pp.3297–3304.
Tadelis, S., 2012. Public procurement design: Lessons from the private sector. International Journal of Industrial Organization, 30(3), pp.297–302.
Thai, K. V., 2001. Public Procurement Re-examined. Journal of Public Procurement, 1(1), pp.9–50.
The World Bank, 1995. The World Bank annual report 1995 (English). http://documents.worldbank.org/curated/en/179751468314378230/The-World-Bank-annual-report-1995.
Tukamuhabwa, B.R., 2012a. Antecedents and Consequences of Public Procurement Non-compliance Behavior. Journal of Economics & Behavioral Studies, 4(1), pp.34–46.
Tukamuhabwa, B.R., 2012b. Antecedents and Consequences of Public Procurement Non-compliance Behavior. Journal of Economics & Behavioral Studies, 4(1), pp.34–46. Available at: http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=74607733&site=eds-live&authtype=shib.
Uyarra, E. et al., 2014. Barriers to innovation through public procurement: A supplier perspective. Technovation, 34(10), pp.631–645.
Uyarra, E. & Flanagan, K., 2010. Understanding the Innovation Impacts of Public Procurement. Manchester Business School, 18(November 2014), pp.123–143.
Walker, H. & Brammer, S., 2012. The relationship between sustainable procurement and e-procurement in the public sector. International Journal of Production Economics, 140(1), pp.256–268.
Wisker, G. (2001). The postgraduate research handbook. New York: Palgrave.Morris, T., & Wood, S. (1991). Testing the survey method: continuity and change in British industrial relations. Work, Employment & Society, 5(2), 259-282.
World Bank, 2003. World Development Report 2003. http://elibrary.worldbank.org/doi/abs/10.1596/0-8213-5187-7
Zeithaml, V.A., 1988. Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence. The Journal of marketing, pp.2-22.
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2018-12-18
How to Cite
Mansaray, A. K., Lapkoff, D. M., & Little, A. (2018). PUBLIC PROCUREMENT COMPLIANCE BEHAVIOR AND ITS EFFECT ON QUALITY SERVICE DELIVERY: A CASE STUDY OF THE ELECTRICITY COMPANY OF GHANA (ECG). International Journal of Supply Chain Management, 3(2), 60 – 85. Retrieved from https://iprjb.org/journals/index.php/IJSCM/article/view/794
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