Electronic procurement adoption and procurement performance: does institutional quality matter?

Author:

Charnor Isaac TettehORCID,Quartey Evelyn Kukuwa

Abstract

PurposeElectronic procurement has received primacy as one of the significant reforms to help fight corruption and inefficiencies in the public sector across countries. The purpose of this paper is to examine the effect of electronic procurement adoption on procurement performance. Additionally, the paper examines the moderating role of institutional quality in the relationship between electronic procurement and procurement performance.Design/methodology/approachThe study applied an explanatory design and a quantitative research approach. Also, the study relied on UTAUT and institutional theory to develop a test research model using 121 responses from public entities in Ghana. Hypothesised paths were investigated using structural equation modelling.FindingsThe findings revealed that electronic procurement adoption positively and significantly affects procurement performance. Also, the findings indicated that institutional quality positively and significantly affects electronic procurement adoption and procurement performance, respectively. Lastly, the findings proved that institutional quality moderates the relationship between electronic procurement adoption and procurement performance.Research limitations/implicationsThe study focused on public procurement entities in the Greater Accra Region – Ghana. The study contributes to adopting electronic procurement, institutional quality, and procurement performance literature. The study also extends the UTAUT and the institutional theory to African public entities. The study reechoes the importance of institutional quality in developing economies to enhance electronic procurement adoption.Originality/valueTo the best of the researcher’s knowledge, this is the first study that examines the moderating role of institutional quality in the relationship between electronic procurement adoption and procurement performance.

Publisher

Emerald

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