Research
ORGANIZATIONAL ATTRIBUTES AND ADOPTION OF ELECTRONIC PROCUREMENT IN LOCAL GOVERNMENT:
A CASE OF TORORO DISTRICT LOCAL GOVERNMENT
DECLARATION
I, hereby declare that this research proposal is my original work and has not been published or presented to any institution for purposes of academic award. Where I have included work from published literature, the sources have been duly acknowledged.
APPROVAL
This proposal has been submitted to the university board of examiners with my approval as a university approved supervisor
Name: …………………………………………………………………………………………
Signature: …………………………………. Date: ……………………………….
DEFINITIONS OF KEY TERMS
Organizational Attributes: Organizational attributes are the components that defines the way an organization carries out its activities in order to achieve its set objectives.
Adoption: Adoption refers to acquiring and changing new processes to enable a business grow and achieve its goals.
E-procurement: E-Procurement is the application of information technologies in the procurement process that is the purchase and sale of goods, works and services using internet technology.
Local Government: This is a system based on the district as a unit under which there shall be lower local governments and administrative units.
PPDA: Public Procurement and Disposal of Public Assets Authority. An established autonomous body by an Act of parliament to regulate and govern public procurement in Uganda.
TABLE OF CONTENTS
1.1 Background of the study; 2
1.2 Statement of the problem.. 5
1.4 Objectives of the study. 6
1.7 Significance of the study. 8
2.1 What constitutes organizational attributes. 10
2.2 Strategies used in the adoption of e-procurement in local government 12
2.3 Research gaps of the study. 19
3.2 Study population and sample size. 21
3.5 Data collection Instruments. 23
3.6 Measurement of variables. 23
3.7.0 Quantitative quality control 24
3.7.1 Validity of research instruments. 24
3.7.2 Reliability of research instruments. 25
3.8 Data handling procedure. 25
3.9 Data processing, analysis, and presentation. 26
3.9.1 Quantitative data analysis. 26
3.9.2 Qualitative data analysis. 26
3.10 Ethical considerations. 26
SECTION ONE
BACKGROUND TO THE STUDY
1.0 Introduction
This introductory section presents the background to the study, statement of the problem, purpose of the study, objectives of the study, research questions, conceptual framework, scope of the study, significance of the study, limitations of the study and operational definition of terms and concepts.
Article 176 (1) of the Constitution and the Local Government Act Cap. 243 (section 3), stipulates that the system of Local Governments shall be based on a district as a unit under which there shall be administrative units. It further states that, the Local Governments include: district and sub-county councils in rural areas, city and city division councils in a city; municipal and municipal division councils in a municipal; and town councils in a town. The Local Government Act was put in place to operationalize the policy of decentralization adopted by the Government of Uganda (1996) which decentralized powers and functions to the districts for improvements in service delivery, including procurement service delivery. One of the provisions of the Act is that appropriate measures shall be taken to enable local government units to plan, initiate and execute policies in respect of all matters affecting people within their jurisdiction.
Local Governments are financed by grants conditional and unconditional from the Central Government, donations and locally generated revenues from taxes, fees, licenses and charges. The Local Government Act empowers all Local Governments that receive funds to ensure that those funds are spent solely on the procurements which are specified through bidding contracts.
Local Governments, like Tororo District Local Government, are guided by the provisions of PPDA Act (2003) and the Public Procurement and Disposal of Public Assets Authority which launched a five-year grand electronic procurement adoption strategy, running from 2015 – 2019, designed to empower public bodies to better manage public procurement (Public Procurement & Disposal of Public Assets Authority, 2015) which is in line with the key vision strategies of Uganda Vision 2040 which include;
Review the architecture of government service delivery system to act as a unit, harness synergies and deliver public services efficiently and effectively.
Government will pursue policies aimed at leapfrogging in the areas of innovation, technology and science, engineering, human resource development, public sector management, and private sector development.
However, the Procurement and Disposal Audit Report of Tororo District revealed that none of the contracts were executed within the required time frame. The Report further adds that some sites visited had contractors still undertaking work 10 months after the expiry of the contract period without evidence of contract amendment. It is against this background that this study intends to investigate into organizational attributes and adoption of electronic procurement in local government.
1.1 Background of the study;
Organizational attributes are the fundamentals that determine how employees describe where they work, how they understand the business, and how they see themselves as part of the organization (Tipu, Fantazy, & Kumar, 2019). Organizational attributes are also a driver of decisions, actions, and ultimately the overall performance of the organization.
Many organizations across the globe view organizational attributes as a component that defines the way an organization carries out its financial activities and Human resource needs, limiting it to only those two departments. Organizations further down play the importance organizational attributes as something that that has the ability to determine the success of failure of the organization. With the rapidly changing advancement in the business models of the organization in ever-changing volatile market, the importance of organizational attributes is often down played which is a great oversight. Wilhelmy, Kleinmann,,, & Lievens, . (2019). Journal of Business and Psychology, 34(5), 671-684.
Most organizations would making be more profits if they can change their organizational attributes and in the 2008 global economic crisis, poor organizational attributes led to the loss of almost 40 billion dollars by American companies alone and in the global economy lost more than 2 trillion dollars. Therefore, most policy makers are still ignorant on the main influence of organizational attributes to the success of their respective organizations and due to this they concentrate their emphasis on areas which are not critical for the growth. (Erkens, D. H., Hung, M., & Matos, P. (2012). Corporate governance in the 2007–2008 financial crisis: Evidence from financial institutions worldwide. Journal of corporate finance, 18(2), 389-411.
It is imperative for organizations to acknowledge that organizational attributes influence their ability to grow and with cognizance that the organizations have to adopt key specific attributes that can influence change gradually by specifically attributes that are in line with its mission and vision perspectives to enable it achieve sustainable growth and be profitable at the same time. Luchtenberg, K. F., & Vu, Q. V. (2015). The 2008 financial crisis: Stock market contagion and its determinants. Research in International Business and Finance, 33, 178-203.
The overall importance of organizational attribute is immense and some of these include; determining the type of technologies organization use, the type of employees hired, the type of business the organizations carry out, its reactions to competition and its ability to sustain growth and revenues. Most organizations therefore have harnessed increased growth due to good organizational attributes that they adopted and also enables the organization to be unique from others something that enhances growth. Tipu, S. A. A., Fantazy, K., & Kumar, V. (2019). An empirical examination of the effects of the attributes of supply chain openness on organizational performance. Benchmarking: An International Journal.
Organizational attributes consist of organizational culture which includes; values, beliefs, attitudes, and behaviors that employees share and use on a daily basis in their work in the advent of technology most organization changed their values so that they can match the requirements of the global economy Marinova, S. V., Cao, X., & Park, H. (2019). Constructive organizational values climate and organizational citizenship behaviors: A configurational view. Journal of Management, 45(5), 2045-2071.
Adoption; Adoption refers to the process in which an organization acquires a specific technology or process to influence its business process and enable it grow and achieve its goals. Adoption also further means that the organization has to change from the known systems to new systems of carrying out its activities and this in most cases for the greater good of the organization. Basheer, M., Siam, M., Awn, A., & Hassan, S. (2019). Exploring the role of TQM and supply chain practices for firm supply performance in the presence of information technology capabilities and supply chain technology adoption: A case of textile firms in Pakistan. Uncertain Supply Chain Management, 7(2), 275-288.
The term adoption means acquiring. In the business environment, adoption implies that the business entity has acquired a new approach to doing business from the usual or known method. Adoption is used periodically simply because the business organizations have to keep up with the ever-changing business environment. Therefore, it is key in the development of the business process. Rana, N. P., Barnard, D. J., Baabdullah, A. M., Rees, D., & Roderick, S. (2019). Exploring barriers of m-commerce adoption in SMEs in the UK: Developing a framework using ISM. International Journal of Information Management, 44, 141-153.
Though it is very unknown to many organizations, adoption in Business is essential in enabling the business achieve its longtime success and be competitive in a completely volatile environment. Organizations adopt new business models in order to survive for example Samsung adopted Smart phone technology from I-phone in order to stay in business and thrive Yun, B. S., Lee, S. G., & Aoshima, Y. (2019). An analysis of the trilemma phenomenon for Apple iPhone and Samsung Galaxy. Service Business, 13(4), 779-812.
It is imperative to note that Adoption in Business is good and it enhances profitability and productivity. Adoption sometimes leads to total change in organizational culture and way of doing business something that organizations view as risky in the beginning but it has long time benefits to the operations of the company as it can reduce costs and maximize profits in the long run. Love, P. E., & Matthews, J. (2019). The ‘how ‘of benefits management for digital technology: From engineering to asset management. Automation in Construction, 107, 102930.
Some of the most important benefits of adoption is that an organization is able to acquire technologies that can enable it serve its customers better and improve its competitive strength and enable it stay competitive. Failure to adopt therefore sometimes can lead to the organization’s inability to survive and may at times close business. Some of the notable adoption strategies organizations normally go through is the adoption of technology systems like Computing systems, software systems and latest technologies which make business process much easier and improve on the general business environment. Chiu, C. N., & Yang, C. L. (2019). Competitive advantage and simultaneous mutual influences between information technology adoption and service innovation: Moderating effects of environmental factors. Structural Change and Economic Dynamics, 49, 192-205.
Electronic procurement was launched in 2015 as one of the public procurement reforms undertaken by government in order to improve service delivery. The e-government procurement refers to the process of purchase and sale of goods, works, and services through electronic methods primarily the internet (Public Procurement & Disposal of Public Assets Authority, 2015). The PPDA and Auditor General’s annual reports have many times challenged government entities of corruption in their procurement processes. (Minsitry of Finance Report, 2015). The government through the Public Procurement and Disposal of Public Assets Authority (PPDA) rolled out the e-government procurement systems beginning with 10 government entities in July 2015 (Daily Monitor, March 10th, 2015) The system seeks to reduce corrupt practices in procurement process and reduce delays in implementation of government projects.
1.2 Statement of the problem
The Public Procurement and Disposal of Public Assets Authority launched a five-year grand electronic procurement adoption strategy, running from 2015 – 2019, designed to empower public bodies to better manage public procurement (Public Procurement & Disposal of Public Assets Authority, 2015). Additionally, to improve efficiency in utilization of public resources, government sought to continue strengthening the public financial management systems thus adopt the electronic-government procurement (e-GP) to provide a platform for increased transparency in procurement procedures and practices; improve efficiency in the procurement process, improve confidentiality, integrity and authenticity of transactions and develop a common database and electronic trail of procurements.
Despite the public procurement reforms and regulatory framework supporting the adoption of e-procurement as well as the anticipated benefits of e-procurement adoption, the procurement compliance check undertaken on 25 procuring and disposing entities (PDE’s) indicate that the level of e-procurement adoption in most PDEs is critically low and lacking in most cases (Public Procurement & Disposal of Public Assets Authority, 2017).
Adoption of new technologies in local government has been slow and met with resistance from different departments and some government officials which has greatly impacted services delivery negatively.
Failure to adopt new systems into the organization it offers many challenges to the future survival of the organization and this hinders development and the ability of the organization to survive. Adoption is therefore something that an organization can’t do without. Adjei-Bamfo, P., Maloreh-Nyamekye, T., & Ahenkan, A. (2019). The role of e-government in sustainable public procurement in developing countries: A systematic literature review. Resources, Conservation and Recycling, 142, 189-203.
Ultimately failure to adopt practices like e-procurement will lead to delays in service delivery as well as misappropriation of funds for instance the PPDA report, (2014) indicates that the construction of Malaba OSBP was agreed at a contract sum of UGX.15,708,759,579 to be completed within 12 months effective 29th-August-2013. The expected date of completion was scheduled to 28thAugust, 2014 however, this period had expired before completion of works. At the time of inspection, works were estimated at 75% completion.
This study therefore seeks to examine the organizational attributes associated with the current status of e-government procurement adoption in Uganda’s local government sector studying the case of Tororo district local government.
1.3 Purpose of the study
The main objective of the study will be to examine the organizational attributes that influence the current status of e-government procurement in Tororo district local government.
1.4 Objectives of the study.
- To examine what constitutes organizational attributes
- To examine the strategies used in the adoption of e-procurement in local government
- To examine the relationship between organizational attributes and adoption of e-procurement in local government
1.5 Research questions
- What constitutes organizational attributes?
- What are the strategies used in the adoption of e-procurement in local government?
- What is the relationship between organizational attributes and adoption of e-procurement in local government?
1.6 Scope of the study
1.6.1 Subject scope
The study will focus on how organizational attributes influence adoption of e-government procurement in Tororo district local government. Organizational attributes will be restricted to management decision, information and communication technology proficiency and employee and user competence looking at how they influence adoption of e-government procurement.
1.6.2 Geographical scope
Tororo District is financed by grants (Conditional and Unconditional) from the Central Government, donations and locally generated revenues from taxes, fees, licenses and charges. In 2017, the district received grants totaling to UGX. 27,402,521,546 from the Central Government; UGX.344, 135,847 and UGX645, 679,175 from locally generated revenues. The Auditor general reported, (2018) indicated that a sum of UGX.253, 999,121 remained unaccounted for at the time of audit contrary to the Regulations, these procurement challenges therefore have prompted this study.
The study will be conducted at Tororo district local government involving all the 23 sub counties and the general hospital. Tororo district is located 230 kilometers east of the capital Kampala and is bordered by Mbale district to the north, Manafwa district to the north-east, Kenya to the east, Busia district to the south, Bugiri district to the south-west, and Butaleja district to the north-west.
1.6.3 Time scope
The research study will focus on a period of five years from 2016 – 2020; the time the government of Uganda launched a five-year grand e-government adoption strategy. Related literature concerning e-government procurement adaption will be reviewed to support the data collected. The study scope is intended to take a period of three months after approval of the research proposal by the University supervisors.
1.7 Significance of the study
Prudent management of public procurement has been identified as very important to accelerate national development. For this reason, successive governments have reformed procurement laws as a justification for judicious use of the taxpayer’s money. The introduction of the public procurement Act 2003 (PPDA Act, 2003) was thus perceived as a critical aspect of driving efficiency in public procurement. However, implementation of the Procurement Act is bedeviled with inefficiency, bureaucracy, lack of transparency, unfairness and discrimination in the selection and award of government contracts. This development has become a major source of worry that gradually erodes public and donor trust and confidence in the public procurement system.
1.7.1 Academic Contribution
The study will add to the existing body of knowledge thus providing a basis for future research both by academicians and policy makers. Since the 2015 – 2019 e-procurement implementation strategy was not successful, the findings of this study will contribute to the success of the next implementation phase.
1.7.2 The Industry Practitioners
It is therefore envisaged that the results of this study will determine the prospects and potential benefits of e-procurement and, the need to progressively move towards the adoption of e-procurement in public sector procurement. The study is also significant in view of the fact that, automating procurement would help in tracking, monitoring and auditing public procurement.
1.7.3 Government
The crucial role e-procurement will play in building public and donor trust and confidence makes it important for this study to be undertaken to examine the factors that influence low adoption of electronic government procurement of the selected public procurement entity.
1.8 Conceptual Framework
Mugenda (2008) defines conceptual framework as a concise description of phenomenon under study accompanied by a graphical or visual depiction of the major variables of the study. According to Young (2009), conceptual framework is a diagrammatical representation that shows the relationship between dependent variable and independent variables. A conceptual framework shows the relationship between independent and dependent variable.
| · Electronic tendering · Electronic bidding · Online reporting · Vendor management system |
| · Managerial Decision · Information Communication Technology Proficiency · Employee and user competence |
Organisational Attributes E-Procurement Adoption
Figure 1: Showing the relationship between organizational attributes and e-procurement adoption.
Source: Adapted from Chan and Chan (2004)
SECTION TWO
LITERATURE REVIEW
2.0 Introduction
This section covers theoretical review, conceptual review, actual literature review and research gaps from previous studies on similar and related topics.
2.1 What constitutes organizational attributes
Organizations were built based on interaction capabilities, mutual aid and overcoming obstacles by its elements. These organizations are capable of adapting to the environment and overcome obstacles that were found along the way, in order to achieve the goals set. They are dynamic systems with the purpose of working as effectively and efficiently as possible. This ensures the survival and prosperity of the organizations as well as the safety of the elements (Marinova, Cao, & Park, 2019).
Currently, an organization needs to know the processes it executes and the various Organizational positions and respective roles and activities assigned, and it is through them that their members are capable of helping. In order for each member to know his role within the company, it is necessary that these roles are described in the manuals that are associated to the organization. The role performed by these members must correspond to an Organizational Position, which is associated with certain attributes, such as functions, qualifications, military patent among others (Tipu, Fantazy, & Kumar, 2019).
The existence of correct alignment between the processes of an organization, together with the information from manuals, is crucial in its development. The procurement department in the organization has the responsibility of ensuring that the organization achieves value for money (Acikgoz, 2019).
To be well structured, an organization must have administrators and managers responsible for the decisions on the structure that involve a complex set of variables, an organizational structure should be related to the relationships and the roles that each member plays in the organization, outlined in manual procedures and previously defined functions. An organizational structure defines how tasks should be organized, the dependence between people in the organization and the mechanisms that allow us to observe and control, not neglecting the need for interaction between the organization’s members themselves (Iqbal, Waheed, Haider, Tesfamariam, & Sadiq, 2019).
Examining business processes one can identify that a pool can either correspond to an entity or an Organizational Position. Consequently, the attribute Job must be represented in order to clarify whether the pool refers to an entity or an Organizational Position. The attribute Job refers to the Organizational Position occupied by the individual. This problem can be solved, based on some questions that aim to understand which attributes enable the successful achievement of business processes and their relations, safeguarding that the exclusion of certain attributes will not affect the concept of Organizational Position (Seeber, Barberio, Huisman, & Mampaey, 2019).
The attributes Qualifications and Grade provide an answer for the first two questions. These attributes determine what an individual needs in order to occupy and play this Organizational Position. The attribute Functions is part of the second question. In addition to this attribute, the authors also consider relevant in business processes the attribute Hierarchy. This is not represented in the OP description but is described in the business process chart. Thus, the representation of this attribute contributes to the clarification of the individuals who will perform the various activities in business processes (Lu, 2015).
Organizational attributes determine how employees describe where they work, how they understand the business, and how they see themselves as part of the organization (Tipu, Fantazy, & Kumar, 2019). Organizational attributes is also a driver of decisions, actions, and ultimately the overall performance of the organization. The organizational attributes determine their choices on what type of technology to adopt. One of the key components of organizational attributes is knowledge sharing, according to Szabó & Csepregi, (2011) who further indicates that Knowledge cannot be shared efficiently without having the adequate competencies accordingly; it is relevant to be aware of the competencies that are necessary for sharing knowledge. From the large number of competencies, those which are needed for knowledge sharing can be and have been revealed with the help of middle managers, who will finally use them to share knowledge.
2.2 Strategies used in the adoption of e-procurement in local government
Electronic procurement or e-procurement is the use of various forms of Information Technology (IT), such as electronic mail, Electronic Data Interchange (EDI) and electronic market place to automate and streamline the procurement process in government entities, improving efficiency and transparency and thereby reducing costs of operation within and between government entities (Joyce & Chan, 2002). Thus, e-procurement is the application of electronic commerce in procurement.
E-procurement adoption refers the ability of procurement entities to use the Internet and Internet technologies to support their procurement processes. It encompasses the willingness and the level of acceptance to use e-procurement. These practices range from identification, evaluation, negotiation and configuration of optimal groupings of trading partners into a supply chain network which can then respond to changing market demands with greater efficiency (Hawkins & Wyld, 2003). Other benefits include: increased compliance with the law, for instance, Ugandan Public Procurement and Disposal of Assets-(PPDA) Act (2003); supply base rationalization, as e-procurement allows managing the supply base in a more efficient and effective way. E-procurement also provides higher transparency to both customers and suppliers on the overall purchasing process. The increasing losses in the procurement processes in the PDEs have been attributed to low adoption level of e-procurement as the ordinary procurement process has been blamed to be time consuming and has consistently scored low on achievement of value for money and transparency (National Procurement Baseline Survey, 2010). Thus, the adoption of e-procurement practices in Uganda’s local governments needs to be treated as a matter of urgency in order to achieve reduction in purchasing process costs through maverick buying reduction.
In the increasing competition, to sustain and to compete against the potential competitors, organizations need to excel at their processes and improve upon their efficiencies through technological adoption. To increase the business volume the consistency in the sales is dependent upon large base of satisfied customers, which in turn allows organizations to deliver better value to internal as well as external customers.
Suppliers of resources or services are the better source of knowledge and support for business development hence integration with suppliers is another way out for the business organizations to develop strategic advantage. The better the relationships with the suppliers allow constant supply as well as availability of the required resource. Traditional procurement process was time consuming and involving huge paper work and manpower. Incorporation of ICT for electronic procurement will increase the speed of business transactions as well as improved transparency will allow the development of trust with the suppliers (Lysons, 2018)
Adoption of e-Procurement is proving to be benefiting to the organizations. Companies that have adopted the e-Procurement technology found to save 425 in purchasing transactions costs due to simplification of the process as well as reduction in purchasing cycle time, which in turn increases the flexibility and provides more up-to-date information at the time of placing of purchasing orders. (Hawking et al, 2004).
E-procurement technological application which has a higher profitability and higher cost savings for the organizations. E-procurement has an increasingly important role in Business-to-Business (B2B) commerce. Use of e-procurement helps to lower the cost of procurement and also provides a platform for better coordination between different suppliers, quicker transaction time and improved process efficiency (Samaniego et al., 2006; Wu et al., 2007).
The overhead costs associated with implementation of this technology as well as the problems associated with persuading suppliers to implement e-procurement at their side is showing a poor adoption of the system (Talluri et al., 2006; Puschmann and Alt, 2005). If the e-procurement function implementation is to be done with a strategic approach, it will be vital to consider how it can be strategically, operationally and technologically integrated. Organizations which are operating in the new economy required to align their selves internally with the demands that the ever-changing competitive environment imposes the strategic behavior of organizations (Phillips 2003).
Management is very vital and key in the running of the government institutions. Top management commitment have a major influence on the adoption of e-procurement as discussed by (Gori et al., 2017). Management readiness is an important driver for increasing e-procurement adoption and implementation in local governments.
Flynn and Davis (2016) indicates that e-procurement initiatives are driven by top management, however managers patronizing attitude towards employees may deter them from being innovative or adopt to a change idea such as shifting from manual procurement to e-procurement that could be beneficial to the whole organization. Like any other technological change, e-procurement brings change in an organization that requires organizational managers to adopt change management strategies towards making the transformation process success indicated by (Barahona et al., 2015). One way in which managers in organizations can reveal commitment to change is to have change management team structures that identifies who was doing the change management work as assessed by (Keramati et al., 2018).
Most major e- procurement initiatives are driven by top management. The Chief Executive Officers (CEO) should be directly involved in the early stages of the process. Managerial commitment towards e-procurement adoption has also been discussed by scholars concerning the style of leadership adopted by many managers. According to Dukić et al. (2017), almost all managers in the African Continent, emphasizes on bureaucratic practices with total reliance on rules and regulations that workers obey without questioning or offering constructive criticism. Managers patronizing attitude towards employees may hinder them from being innovative or adoptive to a change idea such as shifting from manual procurement to e-procurement that could be of benefit to the organizations (Sorte Junior,2016).
Wanjiru and Ofunya (2015) assessed the determinants of e-procurement implementation in Kenyan state corporations within the ministry of finance. The study concluded that lack of employee competence hinders smooth adoption of e-procurement in the public sector and also, the inadequate legal framework was a challenge to e-procurement adoption. Chebii (2016) assessed the determinants of successful implementation of e-procurement in Kenya using the multiple regression technique.
Like any other technological change, e procurement brings change in an organization that requires organizational managers to adopt change management strategies towards making the transformation process success procurement Action Plan, (2005). One way in which managers in organizations can reveal commitment to change is to have change management team structures that identifies who was doing the change management work (Hasan, 2014).
According to Wirtz and Daiser (2018), change management structures outline the relationship between the project team and the change management team. Wirtz and Daiser (2018), further adds that the most frequent team structures include: – change management being a responsibility assigned to one of the project team members or an external change management team supporting a project team. The key in developing the strategy is to be specific and make an informed decision when assigning the change management responsibility and resources Organization for Economic Cooperation and Development (2009).
Managerial commitment towards e-procurement implementation has also been discussed by scholars concerning the style of leadership adopted by many managers. According to Mayer and Louw (2011), almost all managers of African organizations, perhaps because of societal norms and expectations emphasize bureaucratic practices with total reliance on rules and regulations that workers obey without questioning or offering constructive criticism (Svärd, 2014).
A study by Ndongko (2005) on Cameroon public service institutions revealed that despite the culture which emphasizes on rigid hierarchical relationships, managers who were seen by workers to be democratic in their techniques of management and such exerted low control over them elicited higher levels of adopting new changes within the organization compared to authoritarian ones. Implementation of e-procurement which is at time associated with change might require managers to commit themselves in realizing the importance of their employees in making the adoption a success. A study by Howell (2005) on Liberian workers and that by Greenhouse (2007) showed a considerable similarity exist in the work goals of employees around the world and that national differences regarding job related objectives were not as great as people thought. The findings of these studies indicate that human needs are universal, for workers to be motivated in adopting new ideas in an organization, it is important that organizational managers show commitment to motivate the work force and improve quality of work life. This will ease implementation of new technologies such as e-procurement within the local governments in Uganda.
Many governments in the world now appreciate the important role played by ICT. The advent of internet technology has made it possible for governments to offer some key traditional processes online. By promoting information sharing; Maniam, Halimah and Hazman (2006) argue that the governments have been able to improve service delivery. In Kenya, for example, all government ministries have websites which contain very critical information which in the past could only be accessed by physically walking into the government offices and the process was not only tedious but also marred by corruption. Maniam et al (2018) claim that some governments have moved to use ICT in an effort to streamline the procurement process within the public sector. The key processes could range from identification of requirements, through payments to contract management.
Information communication technology provides for dynamism in operations and also allows customization to meet specific user needs and specifications. In procurement, ICT can play a critical role due to its ability to handle and analyze massive amount of data within a short period.
Di Maio (2001) envisages use of ICT in public procurement in e-government. E-government transforms both internal and external relations of public administration through ICT. ICT in procurement aims at optimizing service delivery, increase involvement of citizens in governance and also building more capacity in governance. The Kenya government strategy paper March (2004) stipulated a medium-term initiative, e-procurement, which was envisaged to have been implemented by June 2007. The government through e-government aimed at enhancing efficiency and effectiveness in the delivery of services, promoting accountability by ensuring easier access to information and also allowing the citizens to participate in the delivery of services thus enhancing good governance, empowerment and transparency. All these could only be achieved through information communication technology.
Croom and Brandon (2004) emphasize the critical role played by ICT in the stages of procurement; searching, sourcing, negotiation, ordering, receipt, and post-purchase review. According to Kalakota & Robison (1999) ICT can be used in procurement in activities such as selecting suppliers, purchasing, negotiating, agreeing with terms, monitoring the supplier performance among others. This further ensures efficiency and effectiveness of procurement and especially so in public procurement where public scrutiny therefore public interest takes centre stage in all processes. Rodovilsky & Hedge (2004) emphasized that use of ICT in procurement leads to improved operational performance.
2.2.1 Relationship between organizational attributes and adoption of e-procurement in local government
Any organizations success relies on sound financial management. Due to liquidity problems, public projects are either delayed or not implemented as anticipated. Business and people without internet access may not participate in the processes of e-procurement (Njihia, 2013). There have been challenges with e-procurement system malfunctioning to a case that National and County Governments cannot literally pay the suppliers bills, creating problems for the firms and in the process causing a confidence crisis. There are infrastructure issues too required to support electronic procurement. This is a pushback against the anti-corruption aspect of the system. E-procurement is a solution of technology which enhances corporate buying by use of the internet (Jain & Bandyopadhayay, 2018). Eadie, Perera, Heaney and Carlisle (2017) indicate that e-procurement symbolizes an effective and vital development in the e-business employment in chain management of supply, note that an organization which uses e-procurement benefits from reduction of price in tendering, reduction of time in sourcing of materials, lower costs of administration, procurement staff reduction as well as communication improvement. Adoption of e-procurement is constructed to include e-tendering e-sourcing, e-ordering and e-informing.
As a major strategy in the development of initiatives and different programs of electronic procurement, contributing additional opportunities for business industry, leading to an economy that is globally competitive and assisting in securing an economic growth that is sustained (Lou & Alshawi, 2009). Vaidya, Sajeez and Callender (2016) observe that the primary benefit government agencies pursue to obtain adopting e-tendering is to lower the price of business doing and services delivery which are a bit community efficient. Vaidya, Sajeez and Callender (2016) further indicate that the gains from introduction of system of e-tendering in the sector of government is to bring value for money of tax payers, high effectiveness and efficiency, practice of consistent tendering all over government, enhances general initiative of e-commerce; as well as environmentally as a result of chiefly ‘paperless’ process.
Use of internet in decisions making strategies concerns where and how products and services are sourced (Farrington & Lysons, 2012). Barbara and Maxfield (2013) observed that, keeping pace with competition and delivering against strategic objectives procurement have to use state-of -the art technologies entailing e-sourcing. E-sourcing is a great and fast-growing component where it requires various forms from sell-side and buy-side e-catalogs to post specifications and solicits of bids whereby sellers as well as buyers come together to trade.
During the sourcing of items many transactions that are of low value are performed, raising the effectiveness of the transactions of procurement to become valuable. Jahanshahi, Rezaei, Nawaser and Pitamber (2012), explains that the process of making and approving requisition of purchasing, placement of purchasing orders and reception of services and goods that are ordered, by use of a system of software that is based on the technology of the internet improves greatly the performance of the supply chain. In e-ordering case the services and goods which are ordered are indirect services and goods, that is, services and goods that are non-product related. Kim (2017), states that e-ordering improves greatly the performance of the supply chain because the placement of purchasing orders and reception of services and goods are ordered is enabled by using the technology of the internet.
Stone Braker (2006), observe that e-informing is a type of Enterprise Resource Planning (ERP) which is not associated directly with any stage in the process of purchasing such as ordering or contracting. E-informing means the gathering as well as the distribution process of the information of purchasing both to and from external and internal parties, by use of internet technology. Making sure that shared information quality has turned out to be an effective idea of the management of the supply chain. Croom and Johnston (2013), states that E-informing makes sure that quality together with accuracy, adequacy, criticality, timeliness and credibility improving performance of supply chain that is more noticeable.
The development and implementation of electronic commerce business models, such as a procurement portal in organizations is a challenge that goes beyond mere technological functionality (Larsen et al. 2002). Top management support, organizational adaptation, and training of employees are examples of critical issues for the successful implementation of any IT-system (Kawalek et al. 2003). For the implementation of e-procurement in the public sector, an extra set of factors is considered to be influential. These include knowledge of workers, risks of building the portal, and legislative issues (Oliveira and Amorim 2001). Oliveira and Amorim suggest that three types of models can be considered in order to meet the specific demands related to implementation of e-procurement: The public model where all tasks, including investment and risks of building the portal is run by the government; The private model where all tasks are run by private entities that bear the investment risks of the project; The mixed model (public-private partnership) where participants share investment risks and the benefits of the project.
In 2015, the government of Uganda adopted Government Procurement Portal (GPP) as a mechanism to improve the means through which the PPDA could gather data to periodically assess the effectiveness, efficiency and transparency of the public procurement and disposal system in Uganda. GPP brought together the features of the Procurement Performance Measurement System (PPMS), the Register of Providers (RoP) and the Tender Portal. In the FY 2016/17, GPP was rolled out to 70 PDEs bringing the total number of Entities on the system to 169 (47% national coverage). The Authority was able to assess performance of 138 PDEs which entered data on the Portal. The total number of contracts entered into the portal and analyzed in the FY 2016/17 was greater compared to FY 2015/16. There was however a slight drop in the total value of procurements in the system in FY 2015/16 and FY 2016/17 (PPDA Annual Report FY 2016/17). This drop was as a result of some Entities that previously posted large values such as UNRA, and KCCA posting significantly lower values in the year of reporting. This was due to failure to conclude some of their large procurements due to delays in the procurement process and large budget cuts.
2.3 Research gaps of the study
Studies have been done on e-procurement but majorly on adoption strategies, benefits and challenges. Ahimbisibwe, Tusime & Tumuhairwe (2016), conducted a study on Adoption of E-procurement Technology in Uganda: Migrating from the manual public procurement systems to the internet without looking at the factors conducive for e-procurement adoption. Organizations are facing different challenges associated with the advent and use of e-procurement. Overcoming such require understanding of organizational attributes that vary from sector to sector although some are cross cutting. Mose, Njihia & Magutu (2013), contend that successful implementation of e-procurement will require; employee and management commitment to success of adoption, reliability of information technology and supplier performance, monitoring the performance of e-procurement systems, user acceptance of e-procurement systems and top management support without reference to any organization hence presenting a content gap that this study has to cover. This study will therefore focus on organizational attributes that affect e-government procurement adoption at local government level and particularly Tororo district local government.
SECTION THREE
METHODOLOGY
3.0 Introduction
This section discusses the operational framework within which the facts of the study will be gathered and analyzed. It presents the research design, study population, sample size and selection, sampling techniques and procedure, data collection methods, measurement of the variables and instruments, validity and reliability of research instruments, data collection procedures, data analysis and how the ethical issues underlying the study are addressed.
3.1 Research design
The study will adopt a case study and descriptive research design. This is because the research is focusing on one case. There is a debate on whether case study research design can be used to collect both qualitative and quantitative data. According to Saunders, Thornhill, & Lewis (2015); Bhattacherjee (2012), a case study research design can be used to collect both qualitative and quantitative data from respondents. In this study, both qualitative and quantitative data will be collected by use of interview guide and questionnaires respectively (Demeke, 2018). Interview guide will be used to collect data from Procurement and Disposal Unit (PDU) staff and Accounting Officer whereas questionnaires will be used to collect data from user departments and selected providers.
3.2 Study population and sample size
Using Krejcie and Morgan (1970) table for sample size determination, a total of 80 respondents will selected from a population of 90 as shown in table 1 below. These are preferred because they are directly involved in the procurement cycle (PPDA Act as amended, 2014). A total of 100 procurement transaction files conducted between 2015 and 2019 will be sampled and respondents asked if they adopted use of e-procurement in acquiring and providing the items.
Table 1: Showing study population and sample size
| Category | Population | Sample size |
| PDU staff | 3 | 3 |
| Accounting Officer | 1 | 1 |
| User departments | 60 | 52 |
| Vendors | 26 | 24 |
| Total | 90 | 80 |
3.3 Sampling technique
The study will employ simple random sampling technique for quantitative study and purposive sampling technique for qualitative study. Simple random sampling will be used to select user departments and vendors. Simple random sampling gives equal and independent chance of being selected as a member of the sample (Saunders et al.., 2015). Purposive sampling will be used to select PDU staff and Accounting Officer because they are the key players in the procurement cycle.
3.4 Research Methods
- Survey
Survey method will be used to obtain the opinion of the respondents regarding the topic under study, according to (Onen & onen, 2013) states that surveys are important in research because the respondents are given time to think and they don’t feel intimidated. Questionnaire survey gives the respondents ample time to respond to the questions when ready and they can be kept for future references. This method will be deployed to capture information from Staff Members.
- Interviews
Face-to-face interview is a data collection method when the interviewer directly communicates with the respondent in accordance with the prepared questionnaire (Polak & Green, 2015).
This method enables to acquire factual information, consumer evaluations, attitudes, preferences and other information coming out during the conversation with the respondent. Thus, face-to-face interview method ensures the quality of the obtained data and increases the response rate.
Interviews will be used because they fetch a variety of ideas needed for the study and gives a deeper understanding of the topic. The method will be used to generate information from respondents
- Observations
The study will use observations as a method of data collection to enable better understanding of the organizational attributes and this will therefore enable the researcher make a comprehensive analysis of the organizational attributes.
3.5 Data collection Instruments
Questionnaires
A total of 80 self-administered close-ended questionnaire encompassing background information; organizational attributes and adoption of electronic procurement in local government will be developed. The study questionnaire will be on a score of 5-point Likert scale ranging from 5= strongly agree, 4= agree, 3 = not sure, 2= disagree and 1= strongly disagree. The questionnaire will be used for all categories of respondents.
The interview will consist of a set of questions on what constitutes organizational attributes, strategies used in the adoption of e-procurement and the relationship between organizational attributes and adoption of e-procurement.
Observation checklist
The study will design observation checklist to the respondents in senior positions of the organizations. The observation checklist will be given to specifically procurement and disposal staff and the accounting staff of the organization.
3.6 Measurement of variables
The data on variables will be measured at three levels which will include; bivariate level in which the researcher intends to concurrently consider two variables using presentation modes like cross tabulation., univariate and multivariate. The univariate level considers measurement and analysis of data at individual variable basis where the researcher uses measures of the mean, mode and frequencies. At the multivariate level, the researcher considers a combination of more than two variables at the same time and this is mainly used at higher level analysis to compute variable aggregates as well as the regression coefficient.
Organizational attributes
The questionnaire is prepared using a five-point Likert scale which has; (5-Strongly Agree, 4-Agree, 3-Not Sure, 2- Disagree and 1-Strongly Disagree). The Likert scale measures attitudes, behaviors and values of individuals in regards to a given aspect. Therefore, the choice of this measurement is that each point on the scale carries a numerical score which will be used in the study of social attitude.
Adoption of e-procurement
3.7 Data quality control
The study will account for both validity and reliability so as to assure and maintain quality.
3.7.0 Quantitative quality control
3.7.1 Validity of research instruments
According to Amin (2005) validity of a research instrument is when a tool contains questions that are in line with both theoretical and conceptual aspects of the study variables. Therefore, all research instruments will be validated by experienced scholars in procurement and postgraduate research studies whose input will be considered before the instruments are administered to their study sample. Through measuring content validity indices, experts will be asked to rate each item on the questionnaire, interview guide, and documentary checklist as Relevant (R) or Irrelevant (IR) whose averages will yield computations of Content Validity Index (CVI) that must be above 0.7 threshold as illustrated by formula:
CVI = Where n= Number of items rated as relevant, and N= Total no. of items in the instrument.
In this study, validity will be achieved by establishing content validity. The researcher will achieve content validity by using the experts to assess the validity of the research instrument. The experts especially research supervisors and consultants from Cavendish University will be given data collection tools to assess whether the items in the instruments are valid in relation to research topic, objectives, and questions. From the instruments they will declare some items valid and others invalid. Those declared invalid will be dropped, others adjusted, while the valid ones will be maintained. Then content validity index (CVI) will be computed by dividing the number of items declared valid by total number of items/questions in the data collection instrument.
3.7.2 Reliability of research instruments
Reliability of a research instrument as defined by Kothari (2011) is the extent to which research findings can be replicated if another study was undertaken using the same research tools. This will be attained after piloting the questionnaires at the district from where data will be collected from 80 respondents that will be captured in Microsoft excel instead and tested for Cronbach’s reliability test to
|
§ E-tendering § Electronic bid/quotation § E-informing/On-line reporting § Vendor management system
|
| Information Communication Technology proficiency § ICT infrastructure
|
| Employee and user competence § Employee and user willingness
|
determine the levels of reliability that ought to be equal or above threshold of 0.7 as suggested by Amin (2005) for the instrument to be administered.
3.7.3 Qualitative data quality control
The interview guide will be vetted though a pilot study to make sure that its content measures all the variables involved in the study.
3.8 Data handling procedure
3.8.1 Data organization
Having collected/obtained quantitative data on questionnaires, this numeric data will be organized and entered in Microsoft excel according to the sequence on the questionnaire and research objectives. Since the study will also collect qualitative data, a thematic content analysis will be employed to organize qualitative data from interviews and documentary checklist that will help in interpretation and processing of related content.
3.9 Data processing, analysis, and presentation
3.9.1 Quantitative data analysis
Data analysis involves reduction of accumulated data to a manageable size, developing summaries, looking for patterns and applying statistical techniques. Using statistical package for social scientists Microsoft Excel to process quantitative data, the study will be in position to avail descriptive frequency tables that will generate preliminary findings and later inferential tables will be used to generate conclusive findings and to test guiding research hypotheses for rejection/acceptance (Amin, 2005). To test the research hypotheses, the study will use Pearson’s product moment correlation coefficient results of both simple and multiple regression analysis to determine whether different organizational attributes predict adoption of e-government procurement in Tororo district local government.
3.9.2 Qualitative data analysis
Data collected from interviews will be transcribed and edited to ensure completeness and accuracy of results. The qualitative data will be categorized into meaningful information to supplement quantitative data (Creswell, 2014).
3.10 Ethical considerations
The ethical considerations will be taken into account throughout data collection. First, each selected respondent will be informed that his or her response is voluntarily and those who will provide verbal and written consent will take part in the study.
Secondly, a clear introduction and elaboration of the objectives of the study will be given to every respondent before engaging him or her in the field work. Thirdly all research tools will have an introduction and participants identities will be kept anonymous, to avoid any harm to respondents. Furthermore, the study will abide by the ethics of social research ranging from professional ethics to those concerning researcher to respondent relationship. In addition, all those who will assist the researcher in one way or the other will be given due respect. Acknowledgement of other scholar’s works will be maintained throughout the research process.
3.11 Limitations
The researcher is likely to meet the following challenges while in the field;
Due to the business nature of the employees in the district local government, they may not have enough time to give a good feedback and this may compromise the quality of the study.
The respondents in the study may fear to give information to the study since they feel they can get them fired or the information may be misused for other purposes something they feal can lead to some challenges to them.
Given the current Covid-19 pandemic, some key respondents may not be readily accessible or available as they could be working remotely.
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