Assessing the Effectiveness of Electronic Government Procurement (E-GP) On Organizational Performance in Water Utilities in Zambia: A Case of Lusaka Water Supply and Sanitation Company Limited

Abstract

This study assessed the effectiveness of the Electronic Government Procurement (e-GP) system on organizational performance in water utilities in Zambia, with a particular focus on Lusaka Water Supply and Sanitation Company Limited (LWSC). The intention of the introduction of the e-GP system was to resolve inefficiencies in traditional procurements, improve transparency by reducing physical human interaction, reduce operational and organizational costs, reduce corruption, and finally improve service delivery. The e-GP system was made mandatory across all public institutions in Zambia through the enactment of the Public Procurement Act (PPA) No. 8 of 2020—including water utilities. Despite its mandatory status, adoption across most institutions remains inconsistent, with some still relying on manual systems alongside the e-GP. Manual systems contribute to delays, higher operational costs, ineffectiveness, and scanty accountability. A quantitative research design was used to evaluate three core objectives: the current level of e-GP adoption in water utilities, the impact of e-GP on procurement and organizational performance in water utilities, and finally, to find the challenges that water utilities face in the implementation of the e-GP system. Findings revealed that although the use of the e-GP had substantially improved, challenges persisted as more than half the respondents indicated resistance to change, inadequate technological infrastructure, inadequate system security, and high cost in staff training, which could have perhaps contributed to implementation gaps of the system. Despite the challenges cited above, the study found that the e-GP had positively influenced procurement performance by the reduction in advertisement costs, minimizing paper-based processes, enhancing transparency, and accelerating service delivery, with about 58% reporting faster service provision via the e-procurement. According to this study, it may be concluded that while the e-GP improves efficiency, reduces operational costs, and improves transparency and organizational performance at LWSC, its full realization is hindered by technological and organizational barriers. It is recommended that the ICT infrastructure be strengthened, system security be improved, staff capacity building be enhanced, and organizational change management be promoted to achieve the optimal e-GP uptake. This study contributes valuable insights for policymakers, utility managers, and all stakeholders seeking to make strides in improving procurement efficiency and organizational performance in the water sector.