The Adoption of Electronic Systems in Procurement of Commom Use Items

Abstract

This study assessed the adoption of e-procurement for the purchase of common use items in Government Procurement Services Agency (GPSA) in the Arusha region. This study employed the descriptive survey research design. The mixed research approach (both quantitative and qualitative) was used in this study. The study used a sample size of 89 suppliers. Data were collected using questionnaires and interviews. The researcher employed both descriptive statistics and regression analysis. Findings revealed that e-procurement adoption can guarantee a lot of benefits depending on the nature of the organization using it. On the supply side, it was found that the suppliers perceive to benefits more through improved information flow and better information management, obtain more business opportunities due to increase in transparency, lower the transaction costs, facilitate faster and accurate order processing, reduce human effort and improve process efficiency. the study concluded that barriers for e-procurement were the readiness of government suppliers to adopt e-procurement was found to be low due to limited financial and human resources, insufficient IT infrastructure with no reliable internet connection, the e-procurement adoption process is not supported by relevant stakeholders and staff lack technical expertise and skills to adopt e-procurement. It is recommended that adequate finance must be made available in organizations that wish to implement e-procurement since lack of finance was identified in the study as one of the barriers to the implementation of e-procurement. Also, the government must provide adequate resources to support entities implementing the e-procurement system, institutions must develop and maintain a good IT structure to satisfy employees’ needs.