Role of E-Procurement on Organizational Performance:

Abstract

Local Government Authorities (LGAs) in Tanzania are facing procurement problems such as inability to comply with procurement contracts and procuring of low quality goods and services. In attempt to address such problems, the government introduced e-procurement system called Tanzania National e-Procurement System (TANePS). This study assessed the role of e- procurement on the performance of public institutions in Monduli District Council. The study sought to achieve three specific objectives. The first specific objective of the study was to find out the e-procurement processes used in Monduli District Council. The second specific objective of this study was to assess organizational capacity to use e-procurement in Monduli District Council. The third specific objective of this study was to establish the contribution of the e- procurement processes on organizational performance in Monduli District Council. The study applied quantitative research approach which constituted of descriptive research design. The study was based on the population of 314 respondents of Monduli District Council. A sample size of 114 respondents was involved for data collection. Data were collected through closed ended questionnaire. Data were analyzed on SPSS version 21. Analysis was done by using descriptive statistics that composed frequencies, percentage and mean values. This study found that Monduli District Council slightly uses e-procurement processes such as e-tendering, e- contracting and e-invoicing. The study also found that Monduli District Council does not have sufficient capacity to operate e-procurement. The organization does not have sufficient employees, and equipment for e-procurement. The study found that e-procurement has contributing role in organizational performance in terms of transparency, efficiency, effectiveness, competitiveness and dematerialization of procurement processes in Monduli District Council. This study concludes that despite slight usage of e-procurement system, the technology have significant role on improvement of procurement functions of Monduli District Council.