Payment Practices, Supplier Capability and Firms’ Participation in Public Procurement: A Case of Private Firms in Gulu City, Uganda

Aim: This study examined the influence of payment practices and supplier capability on firm participation in public procurement among private firms in Gulu City, Uganda. The specific objectives were to find out the combined effect of payment practices and supplier capability on firm participation in public procurement among private firms in Gulu city. Methods: A quantitative descriptive cross-sectional research design was adopted. Through the use of purposive and simple random sampling, 367 firms were selected to form the sample for the study, out of a population of 8,000 registered firms. The respondents per firm included a procurement manager, finance manager, production manager, stores manager, marketing manager and proprietor who knew the subject matter. A self-administered questionnaire was used to collect data from the respondents. Data were analysed using descriptive statistics, correlation analysis and multiple regression. Results: The results indicate that both payment practices and supplier capability have a significant influence on Firm Participation. The regression model explained 11.9%of the variance in firm participation (Adjusted R² =0.119, p < 0.05) Conclusion: The findings reveal that the timely payment of suppliers, coupled with strong supplier capability, are fundamental determinants of private firms’ participation in public procurement. Recommendations: The study recommends that the government of Uganda should enforce strict payment timelines and strengthen monitoring mechanisms to reduce delayed payments. This may inspire firms to participate in public procurement opportunities. Additionally, private firms should strengthen their financial capacity, technical expertise, and compliance systems to improve eligibility and competitiveness in public tenders. These measures are likely to enhance the participation of the firms in public procurement opportunities.