Abstract:
This study explores the role of innovation culture (INVC) in facilitating the participation
of SMEs in public procurement (PSMP) and examines how collaborative relationships
(CLBR) can act as a critical mediator that strengthens the impact of INVC on PSMP. A
survey was conducted across 248 SME suppliers in Ilala District in Dar es Salaam,
Tanzania. Confirmatory factor analysis (CFA), structural equation modelling (SEM) and
the Hayes PROCESS macro were used for data analysis. The prominent findings of this
study are that CLBR fully mediates the relationship between INVC and PSMP. While a
direct effect of INVC on PSMP does not exist, the findings suggest that INVC has a
positive impact on CLBR, which in turn enhances PSMP. Therefore, CLBR emerges as a
crucial mediator in this context. The findings underline the importance of fostering an
innovation-driven culture to facilitate the integration of SMEs into public procurement
processes. Moreover, the study provides valuable insights into the role of CLBR as
catalysts for innovation and public procurement success, guiding SMEs, policymakers,
and industry stakeholders in nurturing effective partnerships. The study contributes to
both theoretical and practical domains, enriching the existing literature by offering
insights into the combined influence of CLBR and INVC on PSMP. Policymakers and
SME managers can use these insights to develop strategies that promote an innovationdriven culture within SMEs to optimize the outcomes of CLBR in the public procurement
arena.
