Abstract:
Digital technology plays a pivotal role in enhancing corporate efficiency and providing
companies with a competitive edge. In Ethiopia, the government has embraced electronic
governance to leverage digital technologies for operational improvements. Ethiopia's
electronic procurement (e-procurement) faces several challenges, including inadequate
technological infrastructure, lack of employee competency, security concerns regarding
procurement data, and issues with supplier integration and participation. Additionally, there
are concerns about the flexibility of the procurement law, potential for unethical practices,
and the need for better integration with other systems. Aligning with these issues, this study
aimed to investigate factors influencing electronic procurement performance at Muger
Cement Factory. To achieve the objectives of the study, four research questions and
objectives were developed. The research design incorporated both descriptive and
explanatory research type. A combination of probability and non-probability sampling
techniques was employed, with the study area purposively selected. A total of 246
respondents were chosen through simple random sampling using the lottery method from
1788 total employees of the organization. And data was collected via structured
questionnaires. The collected data were analyzed using descriptive and econometric
techniques. The descriptive analysis revealed that procurement planning, ICT utilization,
and procurement procedures were not optimally implemented at Muger Cement Factory. On
the other hand, multiple linear regression model results indicated that procurement
planning, ICT utilization, and procurement procedures were significantly and positively
associated with improved procurement performance, whereas staff competency had a
negative impact. Thus, the main insight of electronic procurement in the study area is its
potential to significantly improve organization procurement processes by enhancing
transparency, efficiency, and accountability. Consequently, it is recommended that the
leadership of Muger Cement Factory should have to invest in training programs focused on
the electronic procurement system for both employees and suppliers to foster better
performance.
