The effect Of digital procurement platforms on susutainable sourcing In SMEs in Kampala Uganda
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Date
2026-04-27
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Uganda Christian University
Abstract
This study examines the impact of digital procurement platforms on sustainable product
sourcing among small retail businesses in Kampala, Uganda. The research is guided by R.
Edward Freeman’s Stakeholder Theory, which emphasizes the influence of stakeholders on
organizational decision-making and business practices. In the context of increasing global
attention to sustainability, particularly through the United Nations Sustainable Development
Goals, businesses are expected to integrate environmental, social, and economic
considerations into their procurement and supply chain processes. However, small and
medium-sized enterprises (SMEs) in developing economies often encounter structural and
technological limitations that constrain their ability to implement sustainable sourcing
practices. At the retail sector around Kampala, procurement processes are still associated with
informal activities which include face-to-face negotiations, manual records as well as cash,
which lack transparency and ability to trace suppliers.
This research design was a qualitative investigation based on descriptive research design in
order to understand the experience and perception of small retailers and managers in the
implementation of digital procurement platforms. The data was collected by using the semi
structured interviews with 20-30 purposely chosen participants that were with a minimum of
two years of business experience and familiarity with digital procurement tools. The thematic
analysis was carried out to analyze this data as suggested by Virginia Braun and Victoria
Clarke. The codification process involved deductive themes which were based on the goals of
the research and Stakeholder Theory and inductive findings which appeared through the
reaction of the participants.
The results show that the degree of small retail business adoption of digital procurement
platforms in Kampala is moderate with a larger percentage transitional. Retailers are slowly
integrating applications like electronic catalogues, supplier portal and online ordering
systems. As it is demonstrated, the ethics of stakeholders such as customer demands of the
ethically sourced products, regulatory demands of adequate record-keeping, and competitive
demands of the retail industry are the major drivers of adoption. A number of obstacles to
widespread adoption exist, such as prohibitive pricing of the internet, lack of digital literacy,
unreliable infrastructure, and existing dependencies on personal supplier relationships.
Nevertheless, these issues have not stopped the platforms leading to a greater level of
procurement transparency, an increase in accountability due to the digital records, and more
systematized supplier assessment. These enhancements contribute to advancing sustainability
across the three aspects of the triple bottom line: the environmental aspect, due to reduced
paper waste and improved inventory management; the social aspect, due to enhanced supplier
visibility and reliability; and the economic aspect, due to lower transaction costs and stock-
outs. However, price remains a significant factor affecting sourcing decisions.
This research indicates that stakeholders' expectations are largely mediating factors in
determining how well these platforms enhance sustainable sourcing. While digital
technologies enhance visibility and information flow, meaningful sustainability outcomes
depend largely on how business owners respond to stakeholder demands. This study therefore
recommends increased digital literacy support for SMEs, the development of affordable
mobile-based procurement platforms, and policy incentives that encourage sustainable
sourcing practices among small retail businesses.
Description
Undergraduate