An investigation on the factors affecting the adoption of e-procurement systems: A focus on the Mpumalanga Provincial Treasury

Abstract

Background: The adoption of e-procurement is globally recognised as a key driver of procurement modernisation, enhancing efficiency, transparency and cost-effectiveness. South Africa has experienced delays in fully embracing e-procurement, especially within government departments provincially. The e-procurement is influenced by reliance on traditional administrative practices, limited government support and low technology investment.
Objectives: This study aimed to investigate the factors affecting the adoption of e-procurement systems in the Mpumalanga Treasury.
Method: This study used a quantitative approach with a sample size of 35 staff from the information and communication technology, and Finance departments. The random sampling method was adopted, where a questionnaire survey was used to collect data, and analysed using the SPSS software.
Results: The Mpumalanga Treasury has not yet adopted e-procurement. A factor such as ICT infrastructure has a strong influence on management support to implement the e-procurement. To effectively execute this adoption, the treasury must place a strong emphasis on the availability of essential infrastructures.
Conclusion: The implementation of e-procurement would result in substantial advantages, particularly cost savings, increased productivity, and improvement in the supply chain principles, such as transparency, fairness, and value for money. E-procurement is frequently viewed as a solution to inefficiencies and cost overruns in conventional procurement processes because it automates and tracks operations with minimum human interaction.
Contribution: This study contributes to the practical importance of prioritising the implementation of digitalisation in the public sector. The findings suggest, actionable insights for policymakers and procurement managers within the Mpumalanga Treasury to address the specific challenges hindering the adoption of e-procurement.