„Factors Affecting Electronic Procurement Performance in Muger Cement Factory”

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.