Business Administration Project Topics

Effects of E-procurement in the Public Sector

Effects of E-procurement in the Public Sector

Effects of E-procurement in the Public Sector

CHAPTER ONE

OBJECTIVES  

In achieving the stated aim, the following objectives were advanced:

  1. To identify the status of e-procurement in terms of its implementation and adoption in the public sector;
  2. To identify the challenges faced with effectively implementation and adopting e-Procurement in the Public Sector; and
  3. To identify factors contributing to successful implementation of e-Procurement.

CHAPTER TWO

LITERETURE REVIEW

INTRODUCTION

This chapter probes into the important literature on the area of this research study. In this chapter, concepts and theories underpinning the research topic and other findings of the research are reviewed to expedite the development of a theoretical framework for the research work. This chapter gives more insight into the overview of procurement and procurement process, traditional method of procurement and its challenges.

Also, an overview into electronic procurement is presented highlighting on the benefits, challenges of implementation and requirement for a successful implementation. The chapter seeks to review requirement that may support e-Procurement implementation in public procurement entities. Also, relevant literatures on the drivers and risks to eprocurement in public procurement entities in Nigeria are presented in order to help provide possible responses to the research questions.

OVERVIEW OF PROCUREMENT

Procurement is well defined as the purchase of works, services and goods (Baily et al., 2008).  Kidds (2013) defined Procurement as “the business supervision function that ensures the noticing, requisition, payment and administration of the external resources that an organization requirements or may need to meet its planned objectives”.

Procurement includes activities that precede as well as follows the signing of a contract between parties involved. Weele (2010) also defined Procurement as “the process of managing external resources in order to make sure that the supply of all goods, works services, functionality and knowledge which are essential for operating  and sustaining the company‟s principal and support activities are safeguarded in all possible regards.

Public procurement is the practice whereby public sector institutions purchase (procure) goods, services and works from contractors. (Office Government Commerce, 2007).Chartered Institutes of Purchasing and Supplying Australia (CIPSA) (2005) has outlined seven core benefit that any company is likely to gain in the procurement process. These, according to CIPSA (2005) include the security of supply, greater added value, improved quality, lower costs, reduced risk, increased efficiency and innovation.

 

CHAPTER THREE

METHODOLOGY

INTRODUCTION

The section provides information on the research methodology and techniques used to conduct the study. It defines the population from which the sample is selected and describes the sampling procedures for selecting the samples. It also discusses the data collection procedure and strategies for data analysis

RESEARCH DESIGN

The research design selected in this study was quantitative based on descriptive survey design. The study focuses on Implementation and Adoption of E-procurement in Nigeria Public Sector: the way forward. Questionnaire was used as the research tool to gather data. The questionnaire was designed to collect views of  procurement practitioners concerning implementation and Adoption of e-procurement in the Nigeria Public Sector.

The research design was also designed to address the specific objectives of the study.

CHAPTER FOUR

DATA ANALYSIS AND FINDINGS

INTRODUCTION

This chapter analyses and discusses the results obtained from the data collected from participants for the purpose of the study.

CHAPTER FIVE

SUMMARY OF FINDINGS,  CONCLUSION AND RECOMMENDATION 5.1 INTRODUCTION

The aim of this research has been to investigate the implementation and adoption of eprocurement in the Nigeria Public Sector and its way forward, three objectives were outlined directed by research questions. In this chapter, the objectives are reconsidered to explore the scope to which these have been obtained throughout the various chapters of the study. It also presents a summary of findings and recommendation based on the findings of the research.

REVIEW OF OBJECTIVES

The study was to evaluate the purchasing processes using e-Procurement process in the public sector in Nigeria. That is, accessing the effectiveness of the implementation and adoption of e-Procurement in Nigeria Public Sector. The issues studied included evaluating public sector e-Procurement processes in helping to achieve high performance, the challenges faced by public institutions in their attempt to adopt and implement this process, as well as the potential success factors that are likely to drive the process forward. An online survey was conducted using 48 respondents who fit into this criterion in question. Results indicated that the Nigerian public sector was well informed of the e-procurement process through various mediums such as the media, through the internet, in schools as well as through conferences attended. Nonetheless, this sector has not adopted this process in its procurement process. It was also found that various challenges such as lack of human resource capacity and poor supplier relationship, to mention but a few, can hinder the e-Procurement process. Also, factors such as evolutionary approach to implementation and availability of IT infrastructure are more likely to positively influence the adoption and implementation of the process.

Objective One  

The first objective of this study was to identify the status of e-Procurement in the Nigerian public sector. The Results of the analysis from table 4.2 showed that majority of respondents (representing 87.5%) responded to have been well informed about the eProcurement methods that exist in the public sector, through various mediums such as the media, the internet, in schools as well as at various conferences attended. This finding is consistent with the World Bank (2003) survey which argued that since e-Procurement includes the introduction of new technologies and significant alteration in the traditional procurement methods, there is a need to educate all Public Sector workers in the use of the new e-Procurement tools which are critical to the success of this initiative. Irrespective of their awareness of the methods and usage of e-procurement, none of the respondents have ever tendered using e-tendering, neither have they ever used evaluation nor e-award notification; although only a few (4.2%) ever paid suppliers using the e-payment method.

CONCLUSION

Procurement is an important part of doing business in today‟s competitive environment, and that the role of procurement plays in institutions cannot be over emphasized. In spite of its importance, it is faced with many challenges which need to be tackled to make the procurement unit of institutions more vibrant as their activities go a long to impact on the performance of the whole organization or institution. For this reason, the e-Procurement method has been adopted to replace the traditional procurement method so as to address most of the challenges in this unit. Despite the benefits of this new process, public institutions in Nigeria (though aware of such new development) do not patronize the new process.

It can be concluded that the lack of employee competency has hindered the smooth adoption of e-procurement in the public sector. It is evident that employees have a great role in adoption of e-procurement and their skills, competencies and training may influence to a large extent e-procurement adoption and implementation in the public institutions in Nigeria. Also, inadequate technological infrastructure has been identified as a hindrance since it plays a significant role in the e-procurement adoption in terms of systems integration of the Public sector in Nigeria. These and the other challenges outlined in the study must address in order to make the adoption process a success. It is also very important for institutions to capitalize on the success factors which could serve as a driving force towards the successful adoption and implementation of e-Procurement in Nigerian public sectors.

RECOMMENDATION

Based on the finding of the study and for smooth implementation of e-procurement in the Nigeria Public Sector, the study recommends following;

There should be a strong commitment on the part of government in the key area of IT infrastructure development in the Country. Proper policies, legislations and regulations should also be put in place to safe guide the whole system of e-procurement, in that eprocurement comes with own security issues. To embrace the e-procurement, sufficient training, education and workshop should be organized for procurement practitioner for them to sharpen their skills and appreciate the real benefits of e-procurement.

RECOMMENDATION FOR FURTHER STUDIES

The results of this research, will add to the existing knowledge and also form the basis for further study. The study was only conducted from the Public Sector point of view, accordingly the same study should be conducted on the Suppliers to find out if the same findings will be obtained.

REFERENCES

  • Aberdeen Group. (2002). Best Practices in e-Procurement. The Abridged Report,       Aberdeen Group Inc, Boston, Massachusetts, pp 65.
  • Aberdeen Group (2008) Global Supply Management (GSM): the 2008–2009 Aberdeen Agenda, [online] http://www.aberdeen.com [Accessed 7/04? 2022].
  • Asian Development Bank, A.D.B. (2013). e-Government Procurement Handbook,        Mandaluyong City, Philippines. Available from http://www.adb.org/e-           government-procurement-handbook, [accessed 12/04/ 2022]
  • Agboyi M. R. and Ackah D. (2005). The impact of E-procurement on the improvement of an Organization, World Wide Journal of Multidisciplinary Research and
  • Development, Vol. 5 wwjmrd 2022; 1(5): 1-9 www.wwjmrd.com
  • Baddeley, A. D., & Kopelman, M. D. (2022). The Handbook of logistic and distribution management, 4th ed, (1), pp.1–14
  • Baily, P., Farmer, D., Crocker, B., Jessop, D., & Jones, D. (2008). Procurement
  • Principles and Management, 10th ed. Harlow, England: Prentice Hall 
  • Bakos J. A (2008) A strategic Analysis of electronic Marketplace, MIS Quarterly 15 (3)  pp 295-310.
  • Bakos A. (2009) The impact of user-perceived e-procurement quality on system and contract compliance, International Journal of Operations & Production Management, Vol. 31, No. 3, pp.274–296
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