E-procurement on organizational efficiency
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Date
2026-05-13
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Uganda Christian University
Abstract
The study investigated the influence of e-procurement on cost efficiency of the Kampala Capital City Authority (KCCA) in particular, the level of e-procurement adoption, its influence on cost efficiency and the factors that hinder its successful adoption. The Technology Acceptance Model (TAM) and organisational e-readiness were used as theoretical framework. A quantitative cross-sectional survey design was adopted, with a survey sample size of 56 respondents from procurement, finance, ICT and administration departments at KCCA, of which 54 were properly responded to (96.4% response rate). The questionnaires were administered and analysed using descriptive statistics, Pearson's correlation and regression analysis with the help of SPSS.The results showed that e-procurement adoption at KCCA is average with a grand mean of 3.49, suggesting that e-procurement is in place, but not yet fully integrated. It was also revealed that e-procurement has a positive impact on cost efficiency with a grand mean of 3.81, especially in terms of cost reduction, reduction in expenses for printing and distribution of documents and improved budget management. E-procurement also showed a positive impact on organisational efficiency with a grand mean of 3.74, suggesting that respondents generally believe e-procurement enhances efficiency. But results from Pearson correlation analysis showed that e-procurement adoption has weak positive but statistically insignificant correlation with organizational efficiency (r = 0.218, p = 0.114), and cost efficiency has weak positive but statistically insignificant correlation with organisational efficiency (r = 0.064, p = 0.645). There was also a weak negative and insignificant link between implementation challenges and organizational efficiency (r = -0.083, p = 0.552). The key challenges of e-procurement implementation include security, lack of coordination among departments, insufficient ICT infrastructure and poor internet connectivity with a grand mean of 4.27. The study finds that while e-procurement can increase efficiency at KCCA, it is limited by partial
implementation and implementation challenges. The study suggests strengthening the full integration of e-procurement systems, enhancing ICT infrastructure, staff training and capacity building, and coordination and monitoring processes to optimise efficiency benefits. The study adds to the evidence on e-procurement and efficiency in the Uganda public sector
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Undergraduate