DIGITAL PROCUREMENT AND INSTITUTIONAL CULTURE: SERVICE QUALITY AND EMPLOYEE EXPERIENCE IN HIGHER EDUCATION

ABSTRACT This paper aims to evaluate the perceived quality of procurement services and their impact on employee satisfaction at higher education institute, taking An-Najah National University (ANNU) in Palestine as a case. Additionally, it examines the role of digitalization as a mediator in enhancing the relationship between the quality of procurement services and employee satisfaction. Data from ANNU employees were collected using a pre-established questionnaire. A partial least squares structures equation modeling (PLS-SEM) was constructed using Smart PLS Software (v4.1.0.3) to examine the relationships between variables. The model was assessed for validity and reliability. The statistical findings in this study reveal the existence of a positive correlation between the quality of procurement and employee satisfaction. Additionally, while the direct effect of digitalization on employee satisfaction was not statistically proven, digitalization was proved to significantly improve the efficiency and quality of procurement services. Finally, the study demonstrates a significant relationship between the digitalization of procurement as a process and the quality of procurement services. The findings of this study offer valuable insights into the impact of perceived procurement service quality on employee satisfaction and the impact of the digitalization of procurement services. The findings also highlight the need to deal with digitalization as an integral component of service quality, rather than an additional benefit. The findings can guide decision-makers in procurement departments, leading to improvement and innovation in the field. However, the study is limited by many factors, including the limited response rate for the questionnaire due to time limitations, and the use of a trial version of Smart PLS software, which limited the analysis to only 100 responses. This study contributes to the existing literature on procurement service quality and employee satisfaction in higher education institutes and provides insights into how procurement services can influence employee satisfaction in such institutions. The study employs SERVQUAL framework to evaluate the quality of procurement services and explores the role of digitalization as a mediator in the relationship between procurement service quality and employee satisfaction, providing a tool for future research in the field, and providing decision-makers with practical recommendations and shaping strategies to improve procurement processes.