Factors Affecting Adoption of E-Procurement in Private Companies in Tanzania

Abstract

E-procurement refers to the use of internet-based (integrated) information and communication technology (ICT) to carry out individual or all stages of the procurement process. The Overall objective of this study was to examine the factors affecting adoption of e-procurement strategy in private companies, taking TBL as case study. The Questionnaires, interview and documentary collection were used in this study: three factors reviewed and critically analyzed using quantitative research approach and presented in percentages, which are the Technological, Organizational, and Environmental factors (T-O-E). The study findings revealed ample evidence that Private companies in Tanzania can adopt e-procurement and enjoy the fruits of this new technology like customer service level improvement, procurement cost reduction, inventory optimizations, buyer/supplier collaboration by direct operational links and easier audits and compliance significantly by the institutions. The study conclude and recommends private institutions to develop Web Service-Based, domain-specific application framework that will enable private companies to quickly and easily build and deploy robust, secure, scalable, manageable, interoperable, portable and lawful e-Procurement. Applications using a good e-procurement software system as it would help them greatly reduce the time and effort required to complete purchasing transactions by eliminating traditional paper chain of requisitions, approvals, receiving, payment reconciliation and reduces face to face interaction hence lower risk of corruption.