Assessing the impact of E-Procurement Systems in Enhancing Procurement Efficiency among International Non-Governmental Organizations in Nigeria

Sontyo Terwase Stephen, Abdullahi Nafiu Zadawa, Alhassan Dahiru

Abstract


This article analyses how e‑procurement systems influence procurement efficiency and governance outcomes in international non‑governmental organisations (INGOs) operating in Nigeria. Drawing on the Resource‑Based View (RBV), Technology Acceptance Model (TAM) and Diffusion of Innovations (DoI), e‑procurement is conceptualised as a strategic digital capability that can reshape cost structures, process speed, transparency and accountability in aid‑funded operations (Barney, 1991; Rogers, 2003; Davis, 1989). A cross‑sectional survey of staff in 96 INGOs and UN agencies yielded 81 valid responses from organisations using e‑procurement, analysed via multiple linear regression. E‑procurement adoption has a very strong positive effect on cost reduction (R² = 0.771; β = 0.865; p < 0.001), a moderate effect on procurement process speed (R² = 0.275; β = 0.422; p < 0.001), and modest but significant effects on transparency (R² = 0.131; β = 0.298; p = 0.001) and accountability (R² = 0.138; β = 0.315; p < 0.001). Classical regression assumptions are largely satisfied, although Durbin-Watson statistics below 1.0 for the transparency and accountability models point to residual autocorrelation. The article argues that in Nigeria’s demanding operating environment, e‑procurement is both an efficiency tool and a governance mechanism, but its developmental contribution depends on accompanying investments in institutional capacity, infrastructure and regulatory alignment. Implications for NGO managers, donors and policymakers concerned with stability and development are discussed. 


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References


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Afolabi, A., Oyeyipo, O., & Ojelabi, R. (2020). Digital procurement practices in Nigeria: Evidence from the construction industry. Journal of Construction Project Management and Innovation, 10(2), 38–55.

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Armbrust, M., Fox, A., Griffith, R., Joseph, A. D., Katz, R. H., Konwinski, A., ... & Zaharia, M. (2010). A view of cloud computing. Communications of the ACM, 53(4), 50–58.

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Zsidisin, G. A., & Ellram, L. M. (2003). An agency theory investigation of supply risk management. Journal of Supply Chain Management, 39(3), 15–27.

Aboelmaged, M. G. (2014). Predicting e-procurement adoption in a developing country: An empirical integration of technology acceptance model and theory of planned behaviour. Industrial Management & Data Systems, 114(3), 392–417.

Afolabi, A., Oyeyipo, O., & Ojelabi, R. (2020). Digital procurement practices in Nigeria: Evidence from the construction industry. Journal of Construction Project Management and Innovation, 10(2), 38–55.

Akinwale, A. A. (2020). Adoption of e-procurement in the Nigerian non-profit sector: Benefits and challenges. International Journal of Public Sector Management, 33(4), 423–438.

Akintoye, A., Renukappa, S., & Lal, H. (2015). IFRC's strategic integration of e-procurement systems: A case study. Journal of Humanitarian Logistics and Supply Chain Management, 5(3), 310–328.

Albrecht, C. C. (2021). Digital procurement: Impact on costs and supplier engagement in non-profit organizations. Journal of Nonprofit and Public Sector Marketing, 33(1), 75–91.

Armbrust, M., Fox, A., Griffith, R., Joseph, A. D., Katz, R. H., Konwinski, A., ... & Zaharia, M. (2010). A view of cloud computing. Communications of the ACM, 53(4), 50–58.

Asamoah, D., Agyei-Owusu, B., Andoh-Baidoo, F. K., & Ayaburi, E. W. (2021). E-procurement and supply chain coordination: Insights from Ghana. Information Technology for Development, 27(3), 446–469.

Banks, N., Hulme, D., & Edwards, M. (2015). NGOs, states, and donors revisited: Still too close for comfort? World Development, 66, 707–718.

Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.

Bharadwaj, A. (2000). A resource-based perspective on information technology capability and firm performance: An empirical investigation. MIS Quarterly, 24(1), 169–196.

Bryman, A. (2016). Social research methods (5th ed.). Oxford University Press.

Burt, D. N., Dobler, D. W., & Starling, S. L. (2010). World class supply management: The key to supply chain management (7th ed.). McGraw-Hill Education.

Carr, A. S., & Smeltzer, L. R. (2003). Strategic purchasing and the impact on firm’s performance. Journal of Supply Chain Management, 39(4), 2–13.

Choudhury, V., & Hartzel, K. S. (2008). Adoption of e-procurement in supply chains: A case study from the development sector. Journal of Information Technology, 23(2), 66–78.

Chong, A. Y. L., Ooi, K. B., Lin, B., & Raman, M. (2011). Factors affecting the adoption level of C-commerce: An empirical study. Journal of Computer Information Systems, 52(2), 13–24.

Cochran, W. G. (1977). Sampling techniques (3rd ed.). Wiley.

Cousins, P. D., & Pye, A. (2006). Performance measurement systems in supply chains: From strategy to practice. Journal of Purchasing and Supply Management, 12(3), 121–130.

Creswell, J. W. (2014). Research design: Qualitative, quantitative, and mixed methods approach (4th ed.). SAGE Publications.

Creswell, J. W., & Plano Clark, V. L. (2011). Designing and conducting mixed methods research (2nd ed.). SAGE Publications.

Crook, C. W., & Kumar, R. L. (2008). Electronic data interchange: A multi-industry investigation using grounded theory. Information & Management, 45(5), 297–303.

Croom, S., & Johnston, R. (2003). E-service: Enhancing internal customer service through e-procurement. International Journal of Service Industry Management, 14(5), 539–555.

Davila, A., Gupta, M., & Palmer, R. (2003). Moving procurement systems to the internet: The adoption and use of e-procurement technology models. European Management Journal, 21(1), 11–23.

Davila, A., Gupta, M., & Palmer, R. J. (2006). Improving the performance of e-procurement through supplier management. International Journal of Electronic Business, 4(5), 512–532.

Deloitte LLP. (2017). The rise of digital procurement: Transforming procurement through digital technologies. Retrieved from https://www2.deloitte.com

Ebrahim, A. (2003). Accountability in practice: Mechanisms for NGOs. World Development, 31(5), 813–829.

Federal Republic of Nigeria. (2007). Public Procurement Act. Abuja: Bureau of Public Procurement.

Federal Republic of Nigeria. (2019). Public procurement reforms and strategy. Abuja: BPP.

Florian, B., & Martin, H. (2020). Digital procurement: The benefits of automation in international NGOs. Journal of Global Operations and Strategic Sourcing, 13(2), 212–225.

Fowler, F. J. (2014). Survey research methods (5th ed.). SAGE Publications.

Gable, G. (2000). Integrating case study and survey research methods: An example in information systems. European Journal of Information Systems, 9(2), 112–126.

Gomart, E. (2006). NGO procurement strategies and the challenges of compliance. Third Sector Review, 12(2), 34–47.

Graham, J. (2002). Effective procurement management in humanitarian organizations. Relief and Development Quarterly, 7(4), 16–25.

GSMA. (2022). The mobile economy: Sub-Saharan Africa 2022. Retrieved from https://www.gsma.com

Gunasekaran, A., & Ngai, E. W. T. (2008). Adoption of e-procurement in Hong Kong: Empirical research. International Journal of Production Economics, 113(1), 159–175.

Hauwa, Y. (2021). Assessing the impact of e-procurement on the performance of public sector organizations in Nigeria. International Journal of Procurement and Logistics Management, 4(1), 45–59.

Huth, T., Knauer, T., & Ruf, M. (2019). Digital procurement in the era of Industry 4.0: Adoption, integration and value. Journal of Business Logistics, 40(2), 104–123.

INGO Forum. (n.d.). Our Members. Retrieved from https://ingoforum.ng

Jahani, A., Sepehri, M. M., Vandchali, B. G., & Tirkolaee, E. B. (2021). A novel model for digital transformation in procurement: An empirical study. Journal of Enterprise Information Management, 34(3), 692–712.

Kauffman, R. J., & Riggins, F. J. (2012). Information and communication technology and the sustainability of microfinance institutions. MIS Quarterly, 36(1), 145–148.

Knoepfel, P. (2016). Corruption in procurement: An institutional and legal analysis. Public Money & Management, 36(4), 265–270.

Kothari, C. R. (2004). Research methodology: Methods and techniques (2nd ed.). New Age International Publishers.

Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607–610.

Kumar, V., & Reinartz, W. (2016). Creating enduring customer value. Journal of Marketing, 80(6), 36–68.

Kumar, R. (2014). Research methodology: A step-by-step guide for beginners (4th ed.). SAGE Publications.

Lancioni, R. A., Smith, M. F., & Schau, H. J. (2003). Strategic internet application trends in supply chain management. Industrial Marketing Management, 32(3), 211–217.

Laudon, K. C., & Laudon, J. P. (2020). Management information systems: Managing the digital firm (16th ed.). Pearson.

McKinsey & Company. (2022). Unlocking the value of digital procurement. Retrieved from https://www.mckinsey.com

McLaughlin, C. P., & Kaluzny, A. D. (2006). Continuous quality improvement in health care: Theory, implementations, and applications (3rd ed.). Jones & Bartlett.

Michael, I. G. A., Nmecha, R. A., & Nmecha, M. (2020). Factors affecting the adoption of e-procurement in the public sector in Nigeria. International Journal of Public Sector Management, 33(2), 214–232.

Mikalef, P., Krogstie, J., Pappas, I. O., & Giannakos, M. (2019). Big data analytics and firm performance: Findings from a mixed-method approach. Journal of Business Research, 98, 261–276.

Min, H., & Galle, W. P. (2003). E-purchasing: Profiles of adopters and non-adopters. Industrial Marketing Management, 32(3), 227–233.

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and supply chain management (6th ed.). Cengage Learning.

Musa, H., Jaafar, H. S., & Raslim, F. H. (2022). Barriers to e-procurement adoption: Evidence from the Nigerian public sector. International Journal of Public Sector Performance Management, 9(3), 350–370.

Nawi, M. N. M., Deraman, R., Bamgbade, J. A., Zulhumadi, F., & Riazi, S. R. M. (2017). E-procurement in Malaysian construction industry: Benefits and challenges. International Journal of Supply Chain Management, 6(1), 209–213.

Neuman, W. L. (2014). Social research methods: Qualitative and quantitative approaches (7th ed.). Pearson.

Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory (3rd ed.). McGraw-Hill.

Obi, E. (2013). Public procurement reform in Nigeria: The journey so far. Nigerian Journal of Public Administration and Local Government, 14(2), 1–17.

OECD. (2022). Public procurement in the digital era. OECD Publishing. https://www.oecd.org

Okoro, C. (2023). Digital procurement in NGOs: Efficiency and challenges in Nigerian operations. African Journal of Procurement & Development, 6(2), 101–117.

Ojo, J. S., Adebayo, A. A., & Salami, A. T. (2018). Regulatory constraints to effective NGO operations in Nigeria. International Journal of Development Administration, 4(1), 55–71.

O'Loughlin, D., & O'Neill, S. (2014). The role of e-procurement in enhancing public procurement transparency. International Journal of Public Sector Management, 27(3), 179–192.

Oyebamiji, F., & Adedoyin, O. (2021). E-procurement and performance improvement in Nigeria's public institutions. African Journal of Business Management, 15(4), 127–138.

Patton, M. Q. (2015). Qualitative research & evaluation methods (4th ed.). SAGE Publications.

Pereira, C. R., & Varma, R. (2011). Leveraging e-procurement for competitive advantage. Journal of Supply Chain Management, 47(2), 12–25.

PwC. (2020). Digitizing procurement for operational excellence. Retrieved from https://www.pwc.com

Puschmann, T., & Alt, R. (2005). Successful use of e-procurement in supply chains. Supply Chain Management: An International Journal, 10(2), 122–133.

Rogers, E. M. (2003). Diffusion of innovations (5th ed.). Free Press.

Sallam, M., Mohamed, Y., & Mohamed, M. (2023). Information and communication technology adoption in supply chains. Information Systems Frontiers, 25(1), 89–107.

Sheu, J. B., Chen, Y. H., & Paul, H. (2006). A supply chain perspective on humanitarian logistics. International Journal of Production Economics, 105(1), 131–145.

Siguaw, J. A., Enz, C. A., & Namasivayam, K. (2000). Adoption of information technology in U.S. chain restaurants. Cornell Hotel and Restaurant Administration Quarterly, 41(2), 72–84.

Smadi, Z. M., & Ababneh, W. (2018). Determinants of e-procurement adoption in the Jordanian public sector. International Journal of Public Sector Performance Management, 4(1), 52–68.

Stütz, M., Kraus, S., & Bouncken, R. B. (2023). Digital procurement transformation: A review and research agenda. International Journal of Operations & Production Management, 43(4), 512–537.

Subramaniam, C., & Shaw, M. J. (2012). A study of the value and impact of B2B e-commerce: The case of Web-based procurement. International Journal of Electronic Commerce, 6(4), 19–40.

Thai, K. V. (2008). Measuring losses to public procurement corruption: The case of South and East Asia. Journal of Public Procurement, 8(3), 243–265.

Transparency International. (2019). Corruption risks in humanitarian operations. Retrieved from https://www.transparency.org

UNDP. (2021). NGO engagement and procurement strategy in fragile contexts. Retrieved from https://www.undp.org

USAID. (2021). NGO capacity building in procurement technology. Retrieved from https://www.usaid.gov

Van Wassenhove, L. N. (2006). Humanitarian aid logistics: Supply chain management in high gear. Journal of the Operational Research Society, 57(5), 475–489.

Vaidya, K., Sajeev, A. S. M., & Callender, G. (2006). Critical factors that influence e-procurement implementation success in the public sector. Journal of Public Procurement, 6(1/2), 70–99.

World Bank. (2020). Enhancing public procurement in fragile states. Retrieved from https://www.worldbank.org.

Xu, Z., Frankwick, G. L., & Ramirez, E. (2018). Effects of big data analytics and traditional marketing analytics on new product success. Marketing Intelligence & Planning, 36(4), 453–468

Yegidis, B. L., & Moffatt, R. A. (2016). Research methods for social workers (7th ed.). Pearson.

Zsidisin, G. A., & Ellram, L. M. (2003). An agency theory investigation of supply risk management. Journal of Supply Chain Management, 39(3), 15–27.


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