An Assessment of E-Procurement Adoption Challenges Facing SMEs in Namibia: A Case Study

Purpose: This study assesses the challenges faced by Small and Medium Enterprises (SMEs) in the adoption of e-procurement frameworks which seemingly influence their competitive advantage and sustainability. This is a Namibian case study using a single organisation in Windhoek. The study examines extensively the challenges faced by this organisation in the adoption and implementation of an e-procurement framework. Methodology: The study adopts a mixed methods approach, using both qualitative and quantitative methods to comprehensively assess the challenges faced by this organisation in the adoption and implementation of e-procurement. Using a simple random sampling technique, questionnaires were distributed to 100 employees of the selected SME in Namibia. Quantitative data was analyzed using SPSS whilst the qualitative data was analysed through thematic data analysis techniques. Findings: The study found that e-procurement elements such as e-invoicing, e-tendering, e-auctioning, e-ordering, e-sourcing, e-awarding, catalogue management, e-informing, e-contracting and purchase order integration were very popular amongst its users. The study further found that SMEs face several challenges in the full adoption of e-procurement frameworks such as untrained employees, lack of e-procurement knowledge from business partners or suppliers, lack of ICT infrastructure, lack of expertise and skill to support e-procurement, financial constraints, and lack of support from top management. Unique contribution to theory, practice and policy: The study established a strong relationship between e-procurement practices and business sustainability and thus concluded that the key success factors in propelling e-procurement adoption among SMEs is derived from its benefits which among others include the reduction of paperwork, fairness and transparency of processes, standardization of procurement procedures, reduction of cycle time, competitive advantage, and the reduction of financing costs in the longer run which leads to business sustainability and growth.