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ORGANIZATIONAL ATTRIBUTES AND ADOPTION OF ELECTRONIC PROCUREMENT IN LOCAL GOVERNMENT:
A CASE OF TORORO DISTRICT LOCAL GOVERNMENT
LIST OF ABBREVIATIONS/ ACRONYMS. iv
1.1. Background of the study. 2
1.2. Statement of the problem.. 3
1.4. Objectives of the study. 4
1.7. Significance of the study. 5
1.7.1 Academic Contribution. 5
1.7.2 The Industry Practitioners. 6
2.1. Organizational attributes. 7
2.2. Strategies used in the adoption of e-procurement in local government. 9
2.3 Research gaps of the study. 14
3.2. Study population and sample size. 16
3.5. Data collection Instruments. 18
3.6. Measurement of variables. 18
3.7.1 Validity of research instruments. 19
Table 3.2 shows the content validity index (CVI) of the research instruments. 20
3.7.2 Reliability of research instruments. 20
3.9. Ethical Considerations. 21
PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS. 23
4.2 Socio-Demographic Characteristics of the Respondents. 24
4.3 Descriptive Statistics. 26
4.3.2 Managerial Decision and Adoption of E-Government Procurement in Tororo DLG.. 26
4.3.3 ICT Proficiency and Adoption of E-Government Procurement. 28
4.3.4 Employee and User Competence. 29
SUMMARY, DISCUSSION, CONCLUSION AND RECOMMENDATION.. 35
5.1 Summary of the Study Findings. 36
5.2 Discussion of the Study Findings. 37
5.2.1 Managerial Decision and Adoption of E-Government Procurement. 37
5.2.2 ICT Proficiency and Adoption of E-Government Procurement. 38
5.2.3 Employee and User Competence and Adoption of E-Government Procurement. 39
CONCLUSION AND RECOMMENDATIONS. 41
6.1.1 Managerial Decision and Adoption of E-Government Procurement. 41
6.1.2 ICT Proficiency and Adoption of E-Government Procurement. 42
6.1.3 Employee and User Competence and Adoption of E-Government Procurement. 42
6.2 Limitations of the Study. 42
6.3 Areas for Further Research. 43
APPENDIX I: QUESTIONNAIRE.. 50
APPENDIX I: SAMPLE SIZE TABLE.. 55
APPENDIX III: BUDGET ESTIMATES. 56
ABSTRACT
The study examined 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. The study set out to assess how managerial decision, ICT proficiency and employee and user competence influence adoption of e-government procurement. The technology acceptance model theory was adopted to conceptualize the variables and guide the overall conceptualization of the study. A case study research design was used adopting quantitative data collection method and instrument. A simple random sampling technique was Using Krejcie and Morgan (1970) table for sample size determination, a total of 86 respondents were selected from a population of 117.
The findings of the study revealed that managerial decision has an influence on the adoption of Electronic procurement in the organization In addition, the findings also revealed that managerial decision, ICT proficiency and employee and user competence all have an influence on the adoption of Electronic procurement.
The study recommends management to commit more resources to ensure higher levels of e-procurement adoption by building a system of incentives for employees and vendors to participate in e-procurement. The study also further recommends management to commit more resources to ensure higher levels of e-procurement adoption by training officers and users on application of current technologies in procurement management.
Key words: Managerial decision, ICT proficiency, Employee and user competence and Adoption of e-procurement.
This 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.
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). Additionally the PPDA report, (2018) further reveals that most of the procurement in Tororo district local government has been faced with the challenge of late delivery of goods, incomplete and shoddy works projects and failure by the district to achieve value for money.
Organizational attributes are understood as key characteristics that differentiate an organization from others, these specifically include the type of business that the organization deals in, size of the organization, the ownership structure whether private or government and the number of employees in the organization (Micheli, & Cagno, 2016). What is known about organizational attributes is that they determine the choices that organizations make as regards to adoption of new technology or specifically the system of operations inorder to meet the needs of their stake holders (Lysons, 2006). Organizational attributes determine the type of technology that an organization can adopt so as not to deviate from its core principles for its findings, though the industrial players acknowledge the relevance of attributes (Marinova et al., 2019). However there is still knowledge deficit as to what magnitude does organizationational attribute influence adoption of electronic procurement in local government. It has been widely acknowledged by many scholars that organizational attributes’ importance mainly revolves around the way it influences an organization on making key choices like choosing a specific technology and procurement decisions (Mockler, 2010). Some of the the examples of organizational attributes include; top managemnent decisions, marketing decisions, procurement decisions, technology decisions, organizational size, number of owners, duration of operation in business and the number of employees(Still, 2005).
Adoption of E-procurement is considered as the ability of procurement entities to acquire and use the internet and related technologies to support their procurement processes. It encompasses the willingness and the level of acceptance to use e-procurement. (Hawkins & Wyld, 2003). Electronic procurement is generally known as a procurement system that reduces costs, enhances value for money and saves organizations’ time in the procurement process (Lysons, 2012), however the cost and the challenges of adopting electronic procurement is high and this is why despite the benefits that electronic procurement brings into an organization, firms are hesitant to adopt it. The rationale for the adoption of electronic procurement is that e-procurement technological application 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). E-procurement 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). Additional examples of electronic procurement include; electronic sourcing, electronic tendering and electronic receipting. (Lysons, 2012)
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.
As a result, Tororo District procurement department has faced delays in the execution of many of its projects, as such affecting service delivery. This can be witnessed in the state of the road network; Tororo district has a road network of 630 kilometres and 8% of these are in a bad state with potholes making them impassable these include the 9.3km Tororo-Kwaapa-Salosalo road which is a major link to Manafwa district, 11.7km Iyolwa-Fungwe road, Katandi-Kilewa road, Nagongogera-Nabuyoga road and Nangongera-Kilewa road among others. The affected roads have remained narrow, some bridges collapsed, blocked drainage channels and bushy. Additionally, the poor state of the bridges has affected health emergency responses. (Independent newspaper, 2021).
Similarly, the Malaba One Stop Border Posts (OSBP) road was completed three years after its expected date of completion slowing down boarder operations. (Public Procurement & Disposal of Public Assets Authority , 2018).
However, if Tororo district local government could have adopted the electronic procurement strategy launched by the Public Procurement and Disposal of Public Assets Authority running from 2015 – 2019, designed to empower public bodies to better manage public procurement (Public Procurement & Disposal of Public Assets Authority, 2015), these delays and losses could have been minimized. It is against this background that this study intends to investigate into organizational attributes and adoption of electronic procurement in local government.
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.
- 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
- 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?
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.
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.
The research study will focus on a period of five years from 2016 – 2021; 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 report by the University supervisors.
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.
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.
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.
Conceptual framework is a concise description of phenomenon under study accompanied by a graphical or visual depiction of the major variables of the study. (Mugenda, 2008). The conceptual framework is a diagrammatical representation that shows the relationship between dependent variable and independent variables. (Young, 2009).
Organizational Attributes E-Procurement Adoption
Figure 1: Showing the relationship between organizational attributes and e-procurement adoption.
Source: Adapted from Chan and Chan (2004)
According to the figure one above, the organization attributes were based on the model of Chan and Chan (2004) which measures attributes using; managerial decision, information communication technology proficiency and employee and user competence.
The figure further shows that E- procurement was based on the attributes of Chan and Chan (2004) which measures it using electronic tendering, electronic bidding, online reporting and vendor management system.
SECTION TWO
LITERATURE REVIEW
This section covers the literature reviewed in line to the study objectives.
2.1. Organizational attributes
Organizations are 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 et al., 2019).
It is imperative for an organization to identify 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 et al., 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 et al., 2019).
By 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 et al., 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 organizational position 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 et al., 2019). Organizational attributes are 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 and knowledge cannot be shared efficiently without having the adequate competencies accordingly; it is therefore 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. (Szabó & Csepregi, 2011).
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). 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. (Flynn and Davis 2016).
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.
The adoption and use of Information and communication technology techniques in public procurement as one of E-government techniques is unavoidable since the world in changing towards a fully automated era that aims to reduce costs and maximize productivity of the organization staff. (Di Maio, 2001).
Top management support, organizational adaptation, and training of employees are examples of critical issues for the successful implementation of any E-procurement systems in the public organizations. (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).
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)
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).
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).
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 et al., (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.
Croom & 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 center stage in all processes. Rodovilsky & Hedge (2004) emphasized that use of ICT in procurement leads to improved operational performance.
2.3. 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 et al., (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 et al., (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 et al., (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 et al., (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.
2.3 Research gaps of the study
Studies have been done on e-procurement but majorly on adoption strategies, benefits and challenges. Ahimbisibwe et al., (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 et al., (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.
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.
The study adopted a case study and descriptive research design. This is because the research was 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 were collected by use of interview guide and questionnaires respectively (Demeke, 2018). Interview guide was used to collect data from Procurement and Disposal Unit (PDU) staff and Accounting Officer whereas questionnaires were 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 86 respondents were selected from a population of 117 as shown in Table 1 below. These were 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 were 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 | 2 |
Accounting officer | 1 | 1 |
User departments | 60 | 49 |
Vendors | 26 | 21 |
I.T department | 7 | 5 |
Accounts | 10 | 8 |
Total | 117 | 86 |
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.
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.
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
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.
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 Organizational Attributes in regards to the model of Chan and Chan (2004) Issues to be examined here will be limited to; Managerial Decision, Information Communication Technology Proficiency and Employee and user competence.
Adoption of e-procurement
E-Procurement which is the (Dependent variable) will similarly be measured using a five-point Likert scale based on the model of Chan and Chan (2004) that is; (5-Strongly Agree, 4-Agree, 3-Not Sure, 2- Disagree and 1-Strongly Disagree). Issues to be examined here will be limited to capture; electronic tendering, electronic bidding, online reporting and vendor management system.
The study will account for both validity and reliability so as to assure and maintain quality.
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.
Table 3.2 shows the content validity index (CVI) of the research instruments
Variables | Total items | Valid items | CVI |
Management Decision | 5 | 4 | 0.8 |
ICT proficiency | 6 | 4 | 0.67 |
Employee user skills & competence | 5 | 4 | 0.8 |
Electronic Tendering | 6 | 4 | 0.67 |
E-Bidding | 6 | 4 | 0.67 |
Online reporting | 5 | 4 | 0.8 |
Vendor Managed Inventory | 5 | 4 | 0.8 |
Total | 38 | 28 | 5.2 |
Source: Primary Data
Therefore, CVI =0.74(74%).
From table 3.2, CVI was 0.74(74%), and this was very good. According to Waner (2005), as cited in Barifaijo, Basheka and Oonyu (2010), if the CVI is greater than 0.7, then the instrument is said to have a high content validity. The researcher analysed the data collected and where need arose, the instruments were re-adjusted and re-designed to improve reliability and validity.
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 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.
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.
Using 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. 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).
Ethical considerations will be taken into account throughout data collection. Firstly, 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. A clear introduction and elaboration of the objectives of the study will then be given to every respondent before engaging him or her in the field work. Finally, 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. Additionally, 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.
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, however the researcher will solve this by Budgeting for the time appropriately and ensuring that the Respondents are informed in advance before they are approached with the study, this will enable them to have enough time to prepare.
- The corona virus pandemic has currently made people fear direct contact with others, this may be a challenge to the researcher however this will be solved by ensuring that the respondents are sanitized and the standard operating procedure are followed.
- The respondents may fear to answer the questions because of fear of losing their jobs since they may have to give information that make their supervisors uncomfortable. This will be solved by assuring the respondents of confidentiality of information.
- The study will involve collecting a big volume of data in short period of time which may lead to not tracking long term changes however, further research will be proposed on the same subject in bigger time scopes.
- The respondents may tick without reflecting on the responses which will affect the accuracy of data collected. This will be solved by setting clear, short and relevant questions to the targeted respondents.
CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS
4.0 Introduction
This chapter presents and analyses the study findings on organizational attributes and adoption of electronic procurement in local governments: a case of Tororo District Local Government. The first section presents the response rate followed by a presentation of the background information about the respondents, descriptive statistics, and analyses of the findings objective by objective.
4.1 Response Rate
This is as shown in Table below.
Table 1: Response rate
Questionnaires | Frequency | Percentage |
Questionnaires issued | 86 | 100 |
Questionnaires returned | 78 | 91 |
Source: Primary data, 2021
According to the data in the table above, 86 questionnaires were issued, out of which 78 were returned when fully answered representing 91% response rate which was far above the acceptable questionnaire return rate of 70%
4.2 Socio-Demographic Characteristics of the Respondents
Table 2: Gender of Respondents
Gender of respondents | ||||
Gender | Frequency | Percent | Valid Percent | Cumulative Percent |
Male | 48 | 61.5 | 61.5 | 61.5 |
Female | 30 | 38.5 | 38.5 | 100.0 |
Total | 78 | 100.0 | 100.0 |
Source: Primary data, 2021
Table 5 above shows that majority (61.5%) of the respondents were male while 38.5% of the respondents were female. This implied that the sample of the study was not gender biased.
Table 3: Age of Respondents in Years
Age group | Frequency | Percent | Valid Percent | Cumulative Percent |
30 years and below | 6 | 7.7 | 7.7 | 7.7 |
31-40 years | 16 | 20.5 | 20.5 | 28.2 |
41-50 years | 42 | 53.8 | 53.8 | 82.1 |
51 and above | 14 | 17.9 | 17.9 | 100.0 |
Total | 78 | 100.0 | 100.0 |
Source: Primary data, 2021
The data in Table 6 above indicates that majority of the respondents were in the age brackets of 41-50 years (53.8 %.). The data also reveal that only 7.7% of the respondents were in the age brackets of 30 years and below. In addition, the ages of the respondents were relevant to the study since views from people of different age groups were obtained. The data further indicates that majority of the respondents were mature enough to be in position to give an informed view of their understanding of the study topic.
Table 4: Education Level of Respondents
Source: Primary data, 2021
The data in Table 4 above, indicate that majority (28%) of the respondents were post graduate degree holders, while only 23.1% were masters and diploma holders. None of the respondents was a certificate holder. This indicates that all the respondents were well educated and therefore could easily understand the topic under investigation.
Table 5: Respondents’ Work Experience
Source: Primary data, 2021
The data in Table 5 above, shows that majority (61.5%) of the respondents have worked at Tororo district local government for more than 10 years while 20.5% were in between 6-10 years and the remaining 17.9% have worked for 1-5 years. None of the respondents have worked for less than a year. This shows that majority of the respondents are aware of the technological transition that takes place at the district and were in position to answer the questions asked about the topic under investigation.
4.3 Descriptive Statistics
This consists of the variables under study. The variables of the study whose descriptive statistics were computed included adoption of e-procurement, managerial decision, information communication technology proficiency, and employee & user competence. The variables were measured using different constructs scored on a five point Likert scale of 5-Strongly Agree (SA), 4-Agree (A), 3-Not Sure (NS),
2-Disagree (D) and 1-Strongly Disagree (SD).
4.3.2 Managerial Decision and Adoption of E-Government Procurement in Tororo DLG
The first objective of the study was to analyze the influence of managerial decision on adoption of electronic government procurement in Tororo DLG. Managerial decision was conceptualized in terms of top management decision and procurement planning & budgeting. Descriptive statistics relating to managerial decision was measured using 10 items and the findings are as shown in Table 10 below.
Table 6: Descriptive Statistics of the Level of Managerial Decision
This section analysed and presented information based on objectives of the study. Empirical findings as per objectives of the study were presented in tables below, respondents were presented with items and requested to either agree or disagree basing on a five Likert scale of; Strongly Agree(SA), Agree(A), Neutral (N), Disagree(D) , Strongly Disagreed(SD). SA+A= Agreed, SD+D= Disagreed, N=Undecided/neutral. The study grouped SA and A to mean agreed, SD and D to mean disagree, and N to mean respondents who were undecided. Percentages.
Statement | SA | A | NS | D | SD |
PDE has a web portal where procurement requirements are processed and managed | 12 (15.4%) | 32 (41%) | 22 (28.2%) | 10 (12.8%) | 2 (2.6%) |
There is a budget allocation for adoption of new technologies | 8 (10.3%) | 14 (17.9%) | 32 (41%) | 18 (23.1) | 6 (7.7%) |
Management considers computer competencies and skills as prerequisite in recruitment of staff | 8 (10.3) | 16 (20.5%) | 18 (23.1) | 30 (38.5%) | 6 (7.7%) |
The district has invested resources in trying to adopt e-government procurement | 2 (2.6%) | 18 (23.1%) | 20 (25.6%) | 28 (35.9%) | 10 (12.8%) |
Source: primary data, 2021
Further on the same variable, the data in the table indicates that 32 (41%) of the respondents disagreed that the PDE has a portal where procurement requirements are processed and managed. This is an indication that the PDE manages its procurement requisitions manually.
On the other dimensions, the table reveals that 30 (38.5%) of the respondents disagreed that management considers computer competencies and skills as prerequisite in recruitment of staff, The outcome in the table show that 28 (35.9%) of the respondents disagreed with the statement that the district has invested resources in trying to adopt e-government procurement. This is evidence that most employees are not aware of top management plans and budgets
The outcome of the response from the table indicate that 36 (46.2%) of the respondents disagreed that the PDE has a functional training program in place for development of employee while 36 (38.5) of the respondents disagreed that the existing PDE policy favors e-procurement.
Lastly, the data in the table shows that majority of the respondents 42 (53.8%) disagreed that PDE involves all stakeholders in planning and budgeting for adoption of e-procurement.
This is evident that management does not involve all stakeholders in planning and budgeting for adoption of e-procurement. The data also shows that 28 (35.9%) of the respondents disagreed that PDE benchmarks its e-procurement adoption progress with other entities. This is an indication that the PDE has not embarked on adopting e-government procurement compared to other government entities.
4.3.3 ICT Proficiency and Adoption of E-Government Procurement
The second objective of the study was to establish the influence of information communication technology proficiency on adoption of e-government procurement at Tororo district local government. This variable was conceptualized in terms of ICT infrastructure, Internet accessibility and reliability and affordability. Descriptive statistics relating to ICT proficiency was measured using 4 items and the findings are as shown in Table 13 below.
Table 7: Descriptive Statistics of the Level of ICT Proficiency
This section analysed and presented information based on objectives of the study. Empirical findings as per objectives of the study were presented in tables below, respondents were presented with items and requested to either agree or disagree basing on a five Likert scale of; Strongly Agree(SA), Agree(A), Neutral (N), Disagree(D) , Strongly Disagreed(SD). SA+A= Agreed, SD+D= Disagreed, N=Undecided/neutral. The study grouped SA and A to mean agreed, SD and D to mean disagree, and N to mean respondents who were undecided. Percentages.
Statement | SA | A | NS | D | SD | Mean |
E-procurement is part of a grand goal by the PDE to integrate ICT in daily work | 14 (17.9%) | 34 43.6%) | 20 (25.8%) | 10 (12.8%) | 0 | 3.67 |
There is adequate ICT infrastructure that supports adoption of e-procurement technologies | 0 | 16 (20.5%) | 16 (20.5%) | 40 (51.3%) | 6 (7.7%) | 2.54 |
Requirements by the district are posted on the website to inform vendors | 0 | 18 (23.1%) | 20 (25.6%) | 28 (35.9%) | 12 (15.4%) | 2.56 |
Vendors compete against each other to get contracts via online bidding | 0 | 6 (7.7%) | 4 (5.1%) | 54 (69.2%) | 14 (17.9%) | 2.03 |
Source: Primary data, 2021
From the findings in Table 7 above, majority 34 (43.6%) of the respondents are in agreement that e-procurement is part of a grand goal by the PDE to integrate ICT in its daily work represented with the highest mean value of 3.67. On the other dimensions that followed, it revealed that majority 40 (51.3%) of the respondents disagreed that there is adequate ICT infrastructure that supports adoption of e-procurement technologies scoring a mean value of 2.54. This was followed by disagreement that requirements of the district are posted on the PDE website to inform vendors On the extent to which vendors compete against each other to get contracts via online bidding, majority, 54 (69.2%) of the respondents disagree, 26 (33.3%) of the respondents disagreed.
4.3.4 Employee and User Competence
The third and last objective of the study was to examine the influence of employee and user competence on adoption of e-government procurement in Tororo district local government. This variable was conceptualized in terms of employee skills and knowledge; and employee and user willingness to adapt the system. Descriptive statistics relating to employee and user competence was measured using 4 items and the findings are as shown in Table below.
Table 8: Descriptive Statistics of Level of Employee & User Competence
This section analysed and presented information based on objectives of the study. Empirical findings as per objectives of the study were presented in tables below, respondents were presented with items and requested to either agree or disagree basing on a five Likert scale of; Strongly Agree(SA), Agree(A), Neutral (N), Disagree(D) , Strongly Disagreed(SD). SA+A= Agreed, SD+D= Disagreed, N=Undecided/neutral. The study grouped SA and A to mean agreed, SD and D to mean disagree, and N to mean respondents who were undecided. Percentages.
Statement | SA | A | NS | D | SD | Mean | Std. Deviation |
I am competent in computer applications and internet know how and usage | 20 (25.6%) | 38 (48.7) | 12 (15.4%) | 6 (7.7%) | 2 (2.6%) | 3.87 | .972 |
There is common use of computers and internet platform at the district | 16 (20.5%) | 32 (41%) | 16 (20.5%) | 12 (15.4%) | 2 (2.6%) | 3.62 | 1.060 |
Internet roll out across the district favors adoption of e-procurement | 4 (5.1%) | 22 (28.2%) | 10 (12.8%) | 32 (41%) | 10 (12.8%) | 2.72 | 1.161 |
The need for e-procurement adoption by the PDE is recognized by all staff | 2 (2.6%) | 10 (12.8%) | 32 (41%) | 22 (28.2%) | 12 (15.4%) | 2.59 | .986 |
Source: Primary data, 2021
According to the findings in Table above, majority 38 (48.7%) of the respondents agreed that they are competent in computer applications and internet know how. On another dimension, 32 (41%) of the respondents agreed with the fact that there is common use of computers and internet platform at the district while on the other hand, 32 (41%) of the respondents disagreed that internet roll out across the district favors adoption of e-procurement.
The extent to which the need for e-procurement adoption is recognized by all staff in the PDE was disagreed with by 22 (28.2%) of the respondents while 32 (41%) of the respondents were not sure.
Table 9: Descriptive Statistics of the Level of Electronic Tendering
This section analyzed and presented information based on objectives of the study. Empirical findings as per objectives of the study were presented in tables below respondents were presented with items and requested to either agree or disagree basing on a five Likert scale of; Strongly Agree(SA), Agree(A), Neutral (N), Disagree(D) , Strongly Disagreed(SD). SA+A= Agreed, SD+D= Disagreed, N=Undecided/neutral. The study grouped SA and A to mean agreed, SD and D to mean disagree, and N to mean respondents who were undecided. Percentages.
Statement | SA | A | NS | D | SD | Mean | Std. Deviation |
Tenders are advertised online | 2 (2.6%) | 2 (2.6%) | 10 (12.8%) | 48 (61.5%) | 16 (20.5%) | 2.05 | .820 |
Prospective suppliers submit reports online | 0 (0%) | 2 (2.6%) | 12 (15.4%) | 44 (55.4%) | 20 (25.6%) | 1.95 | .719 |
Shortlisting of tenders is done by the e-procurement system | 0 (0%) | 12 (15.4%) | 26 (33.3) | 24 (30.8%) | 16 (20.5%) | 2.44 | .988 |
There is a functioning website to facilitate e-procurement system | 0 (0%) | 4 (5.1%) | 20 (25.6%) | 38 (48.7%) | 16 (20.5%) | 2.15 | .807 |
Source: Primary data, 2021
According to the data in the table above, 24 (30.8%) of the respondents agreed that electronic processing leads to a reduced tender cycle time. This was followed by 28 (35.9%) of the respondents who revealed that call for reports is done through the PDE website. However, 26 (33.3) of the respondents were not sure whether shortlisting of tenders is done by the e-procurement system.
As indicated in Table 9 above, it can be seen that 42 (53.8%) of the respondents disagreed with the statement that specifications for procured items are posted on PDE website. The data further shows that 35 (46.2%) of the respondents disagreed that PDE staff make requisition online. This is an indication that the PDE has not yet embraced the grand e-government procurement adoption strategy.
On the other dimensions, the data revealed that 38 (48.7%) of the respondents disagreed that there is a functioning website to facilitate e-procurement system while 48 (61.5%) of the respondents disagreed that tenders are advertised online.
Electronic Bidding
This section analysed and presented information based on objectives of the study. Empirical findings as per objectives of the study were presented in tables 4.4.1 4.4.2 , 4.4.3 respondents were presented with items and requested to either agree or disagree basing on a five Likert scale of; Strongly Agree(SA), Agree(A), Neutral (N), Disagree(D) , Strongly Disagreed(SD). SA+A= Agreed, SD+D= Disagreed, N=Undecided/neutral. The study grouped SA and A to mean agreed, SD and D to mean disagree, and N to mean respondents who were undecided. Percentages, Mean and standard deviation were used to interpret empirical results. The mean above 3 implied that majority agreed, and that below 3 means disagreed while 3 imply undecided/neutral
Statement | SA | A | NS | D | SD | Mean | Std. Deviation |
Bid documents are received online | 0 (0%) | 8 (10.8%) | 16 (20.5%) | 42 (53.8%) | 12 (15.4%) | 2.26 | .844 |
PDE staff make requisitions online | 2 (2.6%) | 8 (10.3%) | 14 (17.9%) | 35 (46.2%) | 18 (23.1%) | 2.23 | 1.005 |
Evaluation of bids is done online | 12 (15.4%) | 28 (35.9%) | 14 (17.9%) | 10 (12.8%) | 14 (17.9%) | 3.18 | 1.346 |
The best evaluated bidder is notified through email | 16 (20.5%) | 4 (5.1%) | 14 (17.9%) | 20 (25.6%) | 24 (30.8%) | 3.36 | 1.216 |
Source: Primary Data
According to the findings in the study it was reported that majority 42 (53.8%) Disagreed that Bid documents are received online. This results also further indicated that majority of the respondents strongly disagreed.
According to the findings in the study it was reported that 35 (46.2%) Disagreed, 18 (23.1%) of the respondents strongly disagreed. It was also further revealed that very few respondents Strongly Agreed, this was also indicated that PDE staff do not make requisitions online.
In line to the response of Evaluation of bids is done online it was reported that majority of the respondents strongly agree, also in line with 28 (35.9%) of the respondents Disagreed, It was also in line with 24 (30.8%) of the respondents agreed.
4.4 Online Reporting
This section analysed and presented information based on objectives of the study. Empirical findings as per objectives of the study were presented in tables below; respondents were presented with items and requested to either agree or disagree basing on a five Likert scale of; Strongly Agree(SA), Agree(A), Neutral (N), Disagree(D) , Strongly Disagreed(SD). SA+A= Agreed, SD+D= Disagreed, N=Undecided/neutral. The study grouped SA and A to mean agreed, SD and D to mean disagree, and N to mean respondents who were undecided. Percentages, Mean and standard deviation were used to interpret empirical results. The mean above 3 implied that majority agreed, and that below 3 means disagreed while 3 imply undecided/neutral.
Statement | SA | A | N | D | SD | Mean |
Specifications for procured items are posted on PDE website | 0 (0%) | 0 (0%) | 18 (23.1%) | 40 (51.3%) | 20 (25.6%) | 1.97 |
All the bidders are invited into an online platform | 0 (0%) | 0 (0%) | 18 (23.1%) | 40 (51.3%) | 20 (25.6%) | 1.97 |
There is a software for analysing bids | 0 (0%) | 8 (10.8%) | 16 (20.5%) | 42 (53.8%) | 12 (15.4%) | 2.26 |
All procurements are done online | 2 (2.6%) | 8 (10.3%) | 14 (17.9%) | 35 (46.2%) | 18 (23.1%) | 2.23 |
On The response of Online reporting it was reported that majority 51.3% of the respondents disagreed this therefore indicated that Specifications for procured items are not posted on PDE website. The table further indicates that none of the respondents strongly agreed.
The table further results further indicates that regarding the question of All the bidders are invited into an online platform majority (51.3%) of the respondents disagreed and the remaining 20 (25.6%) of the respondents strongly disagreed.
According to the results in the table the results indicated that 42 (53.8%) of the respondents disagreed that There is a software for analysing bids while only 12 (15.4%) of the respondents strongly disagreed.
According to the table results it was reported that 35 (46.2%) of the respondents Agreed, All procurements are done online. It was also further reported that 18 (23.1%) of the respondents strongly disagreed while only 2 (2.6%) strongly agreed.
4.4.1 Vendor management information system
This section analysed and presented information based on objectives of the study. Empirical findings as per objectives of the study were presented in tables below, respondents were presented with items and requested to either agree or disagree basing on a five Likert scale of; Strongly Agree(SA), Agree(A), Neutral (N), Disagree(D) , Strongly Disagreed(SD). SA+A= Agreed, SD+D= Disagreed, N=Undecided/neutral. The study grouped SA and A to mean agreed, SD and D to mean disagree, and N to mean respondents who were undecided. Percentages.
Statement | SA | A | NS | D | SD | Mean | Std. Deviation |
Requisitions to vendors is made online | 6 (7.7%) | 2 (2.6%) | 12 (15.4%) | 20 (25.6%) | 38 (48.7) | 3.87 | .972 |
Items needed quotations to vendors is made online | 16 (20.5%) | 2 (2.6%) | 16 (20.5%) | 12 (15.4%) | 32 (41%) | 3.62 | 1.060 |
vendors submit their price quotations on line | 4 (5.1%) | 22 (28.2%) | 10 (12.8%) | 32 (41%) | 10 (12.8%) | 2.72 | 1.161 |
Vendor selection is done online | 2 (2.6%) | 10 (12.8%) | 32 (41%) | 22 (28.2%) | 12 (15.4%) | 2.59 | .986 |
Source: Primary Data
According to the Table results above 38 (48.7) of the respondents indicated that majority of the respondents strongly disagreed, while only 2 (2.6%) of the respondents agreed, it was also further indicated that 20 (25.6%) of the respondents disagreed, that the Requisitions to vendors is made online.
According to the study findings it was reported that 12 (15.4%) of the respondents indicated that Items needed quotations to vendors is made online, while 32 (41%) of the respondents strongly disagreed. It was also further revealed that only 2 (2.6%) of the respondents agreed.
According to the table results it was also further revealed that 32 (41%) of the respondents Disagreed while only 10 (12.8%) Disagreed that vendors submit their price quotations on line while lastly 22 (28.2%) of the respondents disagreed, it was also further indicated that 12 (15.4%) of the respondents strongly disagreed that Vendor selection is done online.
CHAPTER FIVE
SUMMARY, DISCUSSION, CONCLUSION AND RECOMMENDATION
5.0 Introduction
This chapter presents summary of the study findings, discussion of the study findings, conclusion, recommendations, limitations of the study and areas for further research. The first section presents a summary of the study findings. This is followed by a discussion, conclusion, and recommendations and limitations of the study in relation to objectives of the study.
5.1 Summary of the Study Findings
This section summarizes the major findings of the study, it outlines the summary of the findings in line with the objectives of the study.
5.1.1 The Extent to which Managerial Decision Influenced Adoption of E-Government Procurement in Tororo District Local Government
The study result revealed that there is a strategy in place for adoption of e-government procurement in Tororo DLG implying that the PDE is moving towards implementation of grand e-government strategy. On the other hand however, it was revealed that there is no budget allocation for adoption of e-procurement and that management does not involve all stakeholders in planning and budgeting for adoption of e-procurement. In addition, the study found out that computer knowledge and skills is not a prerequisite for joining Tororo DLG service and that the PDE does not have a functional staff development program in place to enhance employee skills and knowledge. The study further revealed that the PDE does not have a website for management of its procurement processes. Lastly, the study revealed that the PDE does not benchmark its e-procurement adoption progress with other entities already implementing e-government procurement.
5.1.2 The Extent to which ICT Proficiency Affects Adoption of E-Government Procurement at Tororo District Local Government
The study revealed that e-procurement is part of a grand goal by the PDE to integrate ICT in its daily work. This was evidenced by presence of computers in some district departments. However, on the contrary, the study revealed that there is inadequate ICT infrastructure to support adoption of e-procurement technologies as some district departments lack computers and internet connection. This limits the PDE from posting its requirements on a website to inform prospective vendors and thus cannot compete via online bidding. In addition, the study also revealed that it is not easy to integrate e-procurement systems with financial and other systems within the PDE as there is no reliable and affordable internet services at the district.
5.1.3 The Extent to which Employee and User Competence Influenced Adoption of E-Government Procurement in Tororo District Local Government
The findings revealed that most district employees are competent in computer applications and this makes it easy for them to adapt to any new system. Since the PDE recruits employees who have received formal education, it is the reason they have computer knowledge and skills that favors usage of computers and internet platform across the district. However, on the contrary, the study revealed that the need for adoption of e-procurement is not recognized by all staff and that the PDE vendors do not have sufficient capacity to implement e-procurement technologies in their business practices since the PDE does not support them in adopting e-procurement. This is an indication that some employees and users do not recognize the benefits of e-procurement. The study further revealed that, the PDE does not use e-systems in acquiring goods and services; tenders are managed manually. Lastly, the study revealed that some employees and users do not understand e-procurement laws and regulations in Uganda despite the fact that they are willing to adapt to the new technology of e-procurement. This explains why some procurements were found conducted outside the PPDA law.
5.2 Discussion of the Study Findings
This sub-section presents a discussion of the findings in relation to literature review.
5.2.1 Managerial Decision and Adoption of E-Government Procurement
The first objective of the study was to assess how managerial decision influence adoption of e-government procurement in Tororo district local government. A correlation analysis was applied to determine this influence and it was found out that there is a strong positive correlation between managerial decision and adoption of e-government procurement at Tororo district local government.
This is in line with Gori et al (2017) who states that management is very vital and key in the running of government institutions. Top management commitment has influence on the adoption of e-procurement. He further states that management readiness is an important driver for increasing e-procurement adoption and implementation in local governments. Accordingly, top management is defined not only as the president and or CEO, but also as those who have authority to establish and enforce policies and guidelines (Toktaş-Palut et al, 2014). Top management support is one of the important and critical success factor for e-procurement adoption. Top management needs to publicly and explicitly identify the project as a top priority (Akmam Syed Zakaria et al, 2018). Senior management must be committed with its own involvement and willingness to allocate valuable resources to the implementation effort (Huang et al, 2016). This involves providing the needed people for the implementation and giving an appropriate amount of resources to get the job done (Tarhini et al, 2018). Top management support is needed for e-government initiatives. There are many political decisions from top management during the e-government developing period. Governments need to define objectives in realizing their e-government system. The result shows that a high degree of top management support plays a significant role on e-government adoption. Leadership is one of the important factors for the e-government success hinges. A critical pre-condition in e-government adoption is a strong leadership with vision (Ibem et al, 2016). (Kiprop Chelagat & Kwasira, 2015) state that strong leadership with vision is a crucial factor for e-government success.
5.2.2 ICT Proficiency and Adoption of E-Government Procurement
The second objective of the study was to establish how information communication technology proficiency affects adoption of e-government procurement at Tororo district local government. A correlation analysis was applied to determine this effect and it was found out that there is a very strong positive significant relationship between ICT proficiency and adoption of e-government procurement at Tororo DLG as indicated by the response from the study.
The findings are in line with Svidronova and Mikus (2015) who stated that, it is an obvious fact that prior to adopting and implementing any new technologies, putting into practice any initiatives or making any new changes, organizations figure out reasons for using and implementing initiatives or changes. When it comes to adopting e-procurement systems or electronic solutions, first, companies will consider requirements of the company and reasons for adopting e-procurement. They make sure that new technologies are compatible with the existing companies´ technologies and ensure that new technologies will pave way for more benefits and value creation. Gurakar and Tas (2016) report that public e-procurement adoption by small organisations in Turkey did not deliver the intended results of increased competition and lower procurement prices as a result of the lack of critical success factors (e.g. size of the organisation, human resources, and technological infrastructure) and the existence of barriers. Huang et al. (2016) posed that, in a developing country context, “the role of government has an extremely significant influence on a decision of initial adoption of e-procurement through government leadership, legal and regulatory infrastructure, information and technology infrastructure (ITI), and socio-economic and knowledge infrastructure”.
5.2.3 Employee and User Competence and Adoption of E-Government Procurement
The third and last objective of the study was to examine how employee and user competence influence adoption of e-government procurement in Tororo district local government. A correlation analysis was applied to determine this influence and it was found out that there is a strong correlation between employee competence and adoption of e-government procurement.
This finding is in line with Joyce (2016) who suggested that skills and knowledge of employees influence the future adoption of a new technology. Implementing a new technology needs skills and knowledge to operate in organizations and most organizations do not implement because organizational employees are not familiar with new technology. Implementing e-procurement necessitates knowledgeable and skilled employees, such reasons may cause delay in e-procurement implementation. Lack of appropriate abilities and skills can limit workers’ productivity. Competence based theorists frequently suggest that firms’ abilities to acquire, assimilate and exploit new technological knowledge is directly related to their portfolio of human resources (Abas Azmi & Abdul Rahman, 2015). Lack of IT skills makes it difficult to implement supplier relationships. This is more so where the supplier has adopted e-procurement while the buyer employs the traditional approaches.
Training and education are being given the importance that they deserve throughout industry and business. If people cannot use the new technologies, they cannot take responsibility for their own quality. Training is important and necessary, but it is also costly (Brandon-Jones & Kauppi, 2018). Bhuasiri et al (2016), suggests that training can be viewed either as a cost or as an investment. Priority human capacities for e-systems are combined; those who have knowledge about technology, business and information in governance. Public sector managers need to be knowledgeable towards a broader skill set that includes an understanding of information systems and ICTs (Rehman Khan & Yu, 2019). Training is adequate to meet and maintain e-government skills (Rotchanakitumnuai, 2013). Also, the re-engineering of work processes needs to be managed well, as well as retraining and educating the relevant staff members (Abas Azmi & Abdul Rahman, 2015). The importance of training, hands-on support, and a proactive stance towards adjusting the technology to work have been identified as important both by practitioners (Chang et al, 2013) and researchers. Therefore, skills and competence is hypothesized to have a direct impact on e-procurement adoption.
CHAPTER SIX
CONCLUSION AND RECOMMENDATIONS
6.0 Introduction
This chapter consists of the conclusions and recommendations of the study.
6.1 Conclusion
The study sought to examine the organizational attributes associated with the current status of electronic government procurement in Uganda’s local government sector studying the case of Tororo district local government. The study examined three dimensions of managerial decision, ICT proficiency and employee and user competence on how they influence adoption of e-government procurement. The study adopted a case study research design to address issues in the study. Data was collected from respondents using structured questionnaires.
Data was analyzed at different levels, first with descriptive statistics, followed by correlation and then regression analysis. All the relationship tested were found to be significant and positive. Regression analysis revealed that managerial decision, ICT proficiency and employee and user competence were all strong predictors of e-procurement adoption.
6.1 Recommendations
This sub section presents the recommendations of the study in relation to dimensions of organizational attributes of managerial decision, ICT proficiency and employee and user competence.
6.1.1 Managerial Decision and Adoption of E-Government Procurement
The study recommends management to commit more resources to ensure higher levels of e-procurement adoption. The implementation of e-procurement in Uganda is still at its infancy stage, even though some private organizations are already using it. Therefore with support and motivation of management, e-procurement will find a bright future in Tororo district local government. Management needs to understand that their involvement in adoption of e-procurement is important and therefore need to champion the process of re-engineering organizational change towards adoption of e-procurement.
6.1.2 ICT Proficiency and Adoption of E-Government Procurement
The study recommends management to commit more resources to ensure higher levels of e-procurement adoption by building a system of incentives for employees and vendors to participate in e-procurement. It is clear from the discussions above that e-procurement embraces many aspects of businesses including selection of suitable suppliers, ordering, payments, accuracy, and timely exchange. A lot of issues need to be considered and put in place for the successful implementation of e-procurement in Tororo district local government including building suitable ICT infrastructure to support integration of activities in daily work.
6.1.3 Employee and User Competence and Adoption of E-Government Procurement
The study recommends management to commit more resources to ensure higher levels of e-procurement adoption by training officers and users on application of current technologies in procurement management. This will equip them with the necessary skills for effective management of e-procurement. Government should also sensitize its citizens on current procurement legislation and institute regulatory mechanisms on e-procurement adoption. Once the above is done, e-procurement is likely to be adopted in a short run.
6.2 Limitations of the Study
The study was carried out during a time when the world is faced with the corona virus pandemic. The “stay home, stay safe” measure affected movement of the researcher and respondents to collect and provide data relevant for this study in time. However, the researcher observed the Ministry of Health guidelines of “social distancing, use of face masks and sanitizing”
The sample was restricted to population of Tororo district local government and yet many local governments equally have low adoption of e-procurement. Therefore the findings was limited to only one local government institutions and yet the e-procurement is national wide government project. The researcher expanded the area of study to Tororo Municipal Council, an independent local government within Tororo district to have in-depth understanding of the problem.
6.3 Areas for Further Research
This study was restricted to Tororo DLG, thus the extent to which these findings can be generalized to all the local governments in Uganda is not clear. Therefore there is need to conduct further research in other local governments.
The study focused on analysing the influence of managerial decision, ICT proficiency, and employee and user competence on adoption of e-government procurement. According to the Public Procurement and Disposal of Public Assets Authority (PPDA), government is rolling out e-procurement in all public sectors. Therefore, the study recommends further studies on other factors that may have influence on adoption of e-procurement in Uganda’s public institutions.
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APPENDIX I: QUESTIONNAIRE
CAVENDISH UNIVERSITY
Dear Respondent,
I am a student of Cavendish University pursuing a Bachelor’s degree in Procurement and logistics management.You have been selected to participate in the study about “organizational attributes and adoption of electronic procurement in local governments; a case of Tororo district local government”. The study is purely for academic purpose and the results will not be used for any other purposes. The researcher would like to assure you that your responses will strictly remain confidential and that under no circumstances will the responses be personalized. You are thus kindly requested to read the questionnaire and complete it as honestly as possible. Your participation is very crucial and your responses will be highly appreciated and valued.
Thank you in advance.
RACHEAL
Researcher.
SECTION A: SOCIO-DEMOGRAPHIC CHARACTERISTICS OF THE RESPONDENTS
(Please tick as appropriate in the space provided)
- Gender of Respondent
- Male [ ]
- Female [ ]
- Age Group
(a) 30 years and below [ ]
(b) 31-40 years [ ]
(c) 41-50 years [ ]
(d) 51 and above [ ]
- Level of Formal Education
(a) Certificate [ ]
(b) Diploma [ ]
(c) Bachelors’ degree [ ]
(d) Post Graduate [ ]
(e) Master’s degree and above [ ]
- Period you have worked with Tororo District Local Government
(a) 0-1 year [ ]
(b) 1-5 years [ ]
(c) 6-10 years [ ]
(d) More than 10 years [ ]
In the subsequent sections, use scales provided to tick a number that describes your opinion on each statement.
SECTION B: MANAGEMENT DECISION
Please tick in the box that corresponds to your opinion according to a scale of 5= Strongly Agree, 4= Agree, 3= Not Sure, 2= Disagree and 1= Strongly Disagree
No. | Statements
| Strongly Agree (5) | Agree (4) | Not Sure (3) | Disagree (2) | Strongly Disagree (1)
|
M1 | PDE has a web portal where procurement requirements are processed and managed | |||||
M2 | There is a budget allocation for adoption of new technologies | |||||
M3 | Management considers computer competencies and skills as prerequisite in recruitment of staff | |||||
M4 | The district has invested resources in trying to adopt e-government procurement |
SECTION C: ICT PROFICIENCY
In a scale of 1-5, indicate the level of agreement regarding the following statement on how information communication technology proficiency affects adoption of e-government procurement at Tororo district local government.
Key 5= Strongly Agree, 4= Agree, 3= Undecided, 2= Disagree and 1= Strongly Disagreed
No. | Statements
| Strongly Agree (5) | Agree (4) | Not Sure (3) | Disagree (2) | Strongly Disagree (1)
|
ICT1 | E-procurement is part of a grand goal by the PDE to integrate ICT in the daily work | |||||
ICT2 | There is adequate ICT infrastructure that supports adoption of e-procurement technologies | |||||
ICT3 | Requirements by the district are posted on the website to inform vendors | |||||
ICT4 | Vendors compete against each other to get contracts via online biding |
SECTION D: EMPLOYEE AND USER SKILLS & COMPETENCE
In a scale of 1-5, indicate the level of agreement regarding the following statement on how employee and user competence influence adoption of e-government procurement in Tororo district local government?
Key 5= Strongly Agree, 4= Agree, 3= Undecided, 2= Disagree and 1= Strongly Disagreed
No. | Statements
| Strongly Agree (5) | Agree (4) | Not Sure (3) | Disagree (2) | Strongly Disagree (1)
|
SC1 | I am competent in computer applications and internet know how and usage | |||||
SC2 | There is common use of computers and internet platform at the district | |||||
SC3 | Internet rollout across the district favors adoption of e-procurement | |||||
SC4 | The need for e-procurement adoption by the PDE is recognized by all staff |
SECTION E: Electronic Tendering
In a scale of 1-5, indicate the level of agreement regarding the following statement on adoption of e-procurement at Tororo district local government?
Key 5= Strongly Agree, 4= Agree, 3= Undecided, 2= Disagree and 1= Strongly Disagreed
No. | Statements
| Strongly Agree (5) | Agree (4) | Not Sure (3) | Disagree (2) | Strongly Disagree (1)
|
AEP1 | Tenders are advertised online | |||||
AEP2 | Prospective suppliers submit proposals online | |||||
AEP3 | Short listing of tenders is done by the e-procurement system | |||||
AEP4 | There is a functioning website to facilitate e-procurement |
SECTION F: Electronic Bidding
In a scale of 1-5, indicate the level of agreement regarding the following statement on adoption of e-procurement at Tororo district local government?
Key 5= Strongly Agree, 4= Agree, 3= Undecided, 2= Disagree and 1= Strongly Disagreed
No. | Statements
| Strongly Agree (5) | Agree (4) | Not Sure (3) | Disagree (2) | Strongly Disagree (1)
|
AFP1 | Bid documents are received online | |||||
AFP2 | PDE staff make requisitions online | |||||
AFP3 | Evaluation of bids is done online | |||||
AFP4 | The best evaluated bidder is notified through email |
SECTION G: Online Reporting
In a scale of 1-5, indicate the level of agreement regarding the following statement on adoption of e-procurement at Tororo district local government?
Key 5= Strongly Agree, 4= Agree, 3= Undecided, 2= Disagree and 1= Strongly Disagreed
No. | Statements
| Strongly Agree (5) | Agree (4) | Not Sure (3) | Disagree (2) | Strongly Disagree (1)
|
AGP1 | Specifications for procured items are posted on PDE website | |||||
AGP2 | All the bidders are invited into an oline platform | |||||
AGP3 | There is a software for analyzing bids | |||||
AGP4 | All procurements are done online |
SECTION H: Vendor management information system
In a scale of 1-5, indicate the level of agreement regarding the following statement on adoption of e-procurement at Tororo district local government?
Key 5= Strongly Agree, 4= Agree, 3= Undecided, 2= Disagree and 1= Strongly Disagreed
No. | Statements
| Strongly Agree (5) | Agree (4) | Not Sure (3) | Disagree (2) | Strongly Disagree (1)
|
AGP1 | Requisitions to vendors is made online | |||||
AGP2 | Items needed quotations to vendors is made online | |||||
AGP3 | vendors submit their price quotations on line | |||||
AGP4 | Vendor selection is done online |
APPENDIX I: SAMPLE SIZE TABLE
|
APPENDIX III: BUDGET ESTIMATES
Serial No. | Item | Quantity | Unit cost (Shs) | Total cost(Shs) |
1 1.1 1.2 1.3 1.4 1.5 1.6 1.7
| Stationary : Ream of papers Flash Disc Pens Pencils Rubber Ruler Calculator
| 2 2GB 5 5 1 1 1 | 11000 30000 500 200 1000 1000 25000 | 22000 30000 2500 1000 1000 1000 25000 |
2
2.1 2.2 2.3 2.4
| Secretarial services Typing Printing Photocopying Binding |
4copies 4copies 4copies 4copies |
17500 20000 7500 8000 |
70000 80000 30000 32000 |
3 | Transport | 30000 | ||
4 | Lunch | 3 | 2000 | 42000 |
5 | Airtime | 20000 | ||
Grand Total | 386,500 |