Electronic procurement management practices, challenges, and its Effect on the operational performance of Ethiopian Agricultural Transformation Institute
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Date
2024-06
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Addis Ababa University
Abstract
Electronic procurement (e-procurement) is a process of managing procurement activities through electronic means aimed at optimizing operational performance. This research aimed to assess the current e-procurement practices, identify major challenges, and evaluate the role of e-procurement on the operational performance of the Ethiopian Agricultural Transformation Institute (EATI). Using a mixed-methods approach, data were collected through surveys and interviews with EATI headquarters staffs. The study employed both descriptive and explanatory research designs. Descriptive statistics (mean and standard deviation) and inferential statistics (such as regression coefficient analysis) were used to analyze the data with the help of SPSS software version 23. Questionnaires were distributed for a total of 144 respondents using Google Forms, and 134 were returned. In Addition, Six (6) director positions were interviewed. Achieving a 93% response rate. Data were collected using structured questionnaires for survey and an open-ended questionnaire for interviews, ensuring reliability through Cronbach's Alpha. The relationship between e-procurement practices and challenges (independent variables) and operational performance (dependent variable) was examined using a multiple linear regression models. The findings indicated that e-procurement practices in EATI significantly enhance operational performance, with Electronic Supplier Evaluation, electronic requisition, and electronic contract management showing the most substantial positive impact on the operational performance of the Ethiopian agricultural transformation institute. Conversely, challenges such as lack of training and high employee turnover negatively affect operational performance. Finally, the study recommended that EATI integrate all aspects of e-procurement optimally through enhanced training, robust support systems, and continuous evaluation to achieve effective operational performance.
Keywords: E-procurement, Operational performance, Ethiopian Agricultural Transformation Institute (EATI)