Abstract:
The study examined the impact of electronic procurement on the performance of public institutions
in Arusha City Council. The specific objectives were: - to identify the factors that influence eprocurement implementation successes in the public sector, to explore a number of eprocurement programmes that fail due to poor technology in Arusha City Council and to find out
the impact of e-procurement on the number of suppliers in Arusha City Council. The study was
guided by disruptive innovation theory and Diffusion of Innovations Theory. Descriptive research
design and mixed approach were used. Data were collected through closed-ended questionnaires
and interviews. The analysis of data was done through descriptive statistics and content analysis.
The study found out that factors influencing e-procurement implementation successes in the
public sector included; cost effective, reduced errors, time serving, promote accountability,
enhance efficiency, promotes transparency and ensure value for money. The study further found
that e-procurement programs that fail due to poor technology were the e-contract management
and e- tendering respectively. Finally, the study found that the impact of e-procurement on the
number of suppliers includes; making the procurement process easy, reduce supplies loss,
enhance transparency in tender competition, increase transaction speed, standardizes supplies,
reduces errors for suppliers records and that it ensures better services to suppliers. The
conclusion made that ; e-procurement was vital in enhancing performance of public institutions as
it ensures cost effective, reduced errors, time serving, promote accountability, enhance efficiency,
promotes transparency and ensure value for money, poor technology resulted to the failure of
some e-procurement programs such as the e-contract management and e- tendering respectively.
The study concluded that among the challenges in e-procurement in Arusha City council included
the difficulty to reconcile once the item is uploaded, the slowness of the system, suppliers refuse
to bid, shortage of ICT personnel, instability of power supply and high reluctance of some
suppliers to use online platforms. It was recommended that the government should invest more on
e-procurement since it enhance performance in public institutions as it is cost effective, reduces
errors, time serving, promote accountability, enhance efficiency, promotes transparency and
ensure value for money. It was further recommended that efforts should be made to reduce the
challenges of e-procurement such as the slowness of the system, unawareness of some suppliers
to use online platforms, shortage of ICT personnel and instability of power supply
