Unlocking Organizational Performance in Public Hospitals: The Strategic Linkage between Procurement Planning and Internal Audit Interdependency

Abstract

The present research explores the role of procurement planning in the context of organisational performance in the public sector by analyzing the mediating influence of internal audit interdependency. This work utilized a quantitative research design, and data was collected from respondents using an adapted research questionnaire. Participants for the study were selected from the 201 employees of public hospitals in Pakistan. This study adopted structural equation modelling (SEM), and the data was analysed using software known as SmartPLS version 3. The results confirm all hypothesized relationships so stated and tested in this study. B pleads that procurement planning positively and significantly influences both organisational performance and internal audit interdependency. Moreover, the findings of interdependency between internal audits revealed that the internal audit interdependency had a positive relationship with the organisational performance. Clearly, a mediating effect was highlighted; internal audit interdependency was established as the partial mediator between procurement planning and organisational performance. The results underscore the need for developing the position of procurement planning as one of the most crucial skills for public sector organisations, as well as strengthening cooperation between the procurement division and internal auditors. There are important recommendations for managers: seek to build up the capability of, and cooperation between, procurement planning and operational procurement functions; enlist additional support from the internal audit function to improve organisational performance.