Factors Influencing the Adoption of E-Procurement among Small Scale Businesses in North Western Province of Zambia

E-procurement refers to the use of electronic methods and systems to conduct transactions and manage procurement processes. It leverages internet-based solutions to facilitate the procurement of goods and services, aiming to enhance efficiency, reduce costs, and improve transparency in procurement activities. This study investigates the factors influencing the adoption of e-procurement among small-scale businesses in Zambia, focusing on the North-Western Province. Utilizing a quantitative research approach, data was collected through structured questionnaires distributed to 375 small-scale businesses, achieving a response rate of 80%. The analysis revealed significant insights into the adoption dynamics of e-procurement systems. The regression analysis indicated that management commitment, supplier relationships, cost of electronic infrastructure, regulatory compliance, and technological infrastructure significantly influence the adoption of e-procurement among small-scale businesses. The results showed that management commitment (β = 0.45, p < 0.01) and supplier relationships (β = 0.32, p < 0.01) were the strongest predictors of e-procurement adoption. The cost of electronic infrastructure (β = 0.28, p < 0.05) and regulatory compliance (β = 0.25, p < 0.05) also positively influenced adoption rates, while technological infrastructure (β = 0.20, p < 0.05) was found to be a significant factor as well. Based on these findings, several recommendations are proposed to enhance e-procurement adoption among small-scale businesses. First, fostering strong leadership commitment is crucial, and businesses should invest in training programs to build managerial capacity. Second, developing robust supplier relationships through collaborative networks can facilitate smoother integration of e-procurement systems. Third, policymakers should consider providing financial incentives or subsidies to reduce the cost burden of electronic infrastructure for small businesses. Fourth, there is a need for clear and supportive regulatory frameworks to encourage compliance and trust in e-procurement systems. Finally, improving technological infrastructure, including reliable internet connectivity and access to modern IT resources, is essential to support the digital transition.

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Publication Details

Journal
African Journal of Management and Business Research
Published
2025-02-28
DOI
https://doi.org/10.62154/ajmbr.2025.018.010575
Primary Topic
Public Procurement and Policy
Type
article
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article

Factors Influencing the Adoption of E-Procurement among Small Scale Businesses in North Western Province of Zambia

I. Mwale, Bupe Getrude Mwanza
African Journal of Management and Business Research
Public Procurement and Policy
article

Factors Influencing the Adoption of E-Procurement among Small Scale Businesses in North Western Province of Zambia

I. Mwale, Bupe Getrude Mwanza
article en

Abstract

E-procurement refers to the use of electronic methods and systems to conduct transactions and manage procurement processes. It leverages internet-based solutions to facilitate the procurement of goods and services, aiming to enhance efficiency, reduce costs, and improve transparency in procurement activities. This study investigates the factors influencing the adoption of e-procurement among small-scale businesses in Zambia, focusing on the North-Western Province. Utilizing a quantitative research approach, data was collected through structured questionnaires distributed to 375 small-scale businesses, achieving a response rate of 80%. The analysis revealed significant insights into the adoption dynamics of e-procurement systems. The regression analysis indicated that management commitment, supplier relationships, cost of electronic infrastructure, regulatory compliance, and technological infrastructure significantly influence the adoption of e-procurement among small-scale businesses. The results showed that management commitment (β = 0.45, p < 0.01) and supplier relationships (β = 0.32, p < 0.01) were the strongest predictors of e-procurement adoption. The cost of electronic infrastructure (β = 0.28, p < 0.05) and regulatory compliance (β = 0.25, p < 0.05) also positively influenced adoption rates, while technological infrastructure (β = 0.20, p < 0.05) was found to be a significant factor as well. Based on these findings, several recommendations are proposed to enhance e-procurement adoption among small-scale businesses. First, fostering strong leadership commitment is crucial, and businesses should invest in training programs to build managerial capacity. Second, developing robust supplier relationships through collaborative networks can facilitate smoother integration of e-procurement systems. Third, policymakers should consider providing financial incentives or subsidies to reduce the cost burden of electronic infrastructure for small businesses. Fourth, there is a need for clear and supportive regulatory frameworks to encourage compliance and trust in e-procurement systems. Finally, improving technological infrastructure, including reliable internet connectivity and access to modern IT resources, is essential to support the digital transition.

African Journal of Management and Business ResearchVol. 18(1)
University of Zambia (ZM)
Openalex Percentile: Top 95%
Public Procurement and Policy
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