FACTORS AFFECTING THE ADOPTION OF E-PROCUREMENT IN PUBLIC ORGANIZATIONS: THE CASE OF ADDIS ABABA CITY ROADS AUTHORITY

Abstract

Businesses face many challenges in today’s fast-changing uncertain global climate (Lee and Gebauer,2006); Many organizations have turned their attention to Electronic Commerce technology to improve the efficiency of their business processes. The most prominent form of e-commerce system concerning interactions between businesses that have recently received attention is called electronic procurement (e-procurement) system (Hawking and Stein 2004). The purpose of this research is to examine factors affecting the adoption of e-procurement in AACRA and it is also focuses on the benefits of e-procurement adoption. Both primary and secondary sources of data were used for this study. The primary data was collected with structure questionnaire and interview and the secondary data was held through books, articles, online dissertation, and other publications. The study was done by distributing 136 questionnaires and out of which 121 questionnaires which represented 89% of response rate were gathered. So 121 completely responded questionnaires were utilized for the analysis of the study. Interview was also made with AACRAs’ Organization Change & Support Service Directorate Director General and with Directors from Goods Procurement Directorates, Engineering Procurement Directorates and Teams from Goods Procurement. SPSS software 22 version was used to analyze the collected data by using descriptive statistics such as frequencies and percentages and correlation analysis. The findings from descriptive statistics indicate that the Legal Frameworks, Management Support and Employee Commitment, Information Technology Infrastructure and Supplier Acceptance are found factors that affecting adoption of e-procurement in AACRA. In addition the result revealed that if e-procurement could adopt in AACRA, the organization would be benefited. On the other hand the findings from correlation model indicate that availability of government policy, legal frameworks, top management commitment & support, and employee commitment has significant relationship with readiness of the adoption of e-procurement in AACRA. In addition, sufficiency of existing ICT infrastructure, compatibility of existing hardware & software and availability of system used by supplier has also significant relationship with readiness of the adoption of e-procurement in AACRA.