E-procurement Adoption Barriers encountered by Small and Medium-sized Enterprises (SMEs) in the Republic of South Sudan

Authors

DOI:

https://doi.org/10.59413/ajocs/v4.i1.5

Keywords:

Barriers, SMEs, E-procurement, Adoption, South Sudan

Abstract

E-procurement adoption is not without its challenges despite facilitating the purchasing process. Hence, this quantitative cross-sectional survey study aimed to examine the e-procurement adoption barriers encountered by small and medium-sized enterprises (SMEs) in the Republic of South Sudan. The 300 SMEs selected out of 1215 SMEs through systematic sampling methods resulted in 213 valid responses with a 71% response rate. Empirical data were derived from the survey questionnaires distributed through Google Forms and Portable Document Format (PDF) via email and evaluated with descriptive and principal component analysis (PCA), relative importance index (RII), and analytical hierarchy process (AHP). Resultantly, multiple national e-procurement implementation methods and incorrect reassembly of data transmitted were ranked the highest barrier among the technological factors, followed by delays in the transmission of data and information, and the technology immaturity due to political and legal factors, lack of widely acceptable e-procurement software solutions and flexibility for management factors, company culture and cost of IT investment for organizational factors. Future works could compare the e-procurement adoption barriers perceived by SMEs in emerging and developed nations and ascertain their e-procurement acceptance. Meanwhile, stakeholders could attract more IT firms in the current market through adequate training, a unified platform, holistic e-procurement adoption techniques, high public awareness, employment of IT experts, forums to exchange ideas on e-procurement, and utilization of passwords, information encryptions, or data. This study proposed employing mixed-method techniques to examine and alleviate SMEs' e-procurement adoption barriers.

References

Abdi, H., & Williams, L. J., 2010. Principal component analysis. Wiley Interdisciplinary Reviews Computational Statistics, 2(4), pp 433-459. DOI: https://doi.org/10.1002/wics.101

Abdrabo, K.I., Kantoush, S.A., Esmaiel, A., Saber, M., Sumi, T., Almamari, M., Elboshy, B. and Ghoniem, S., 2023. An integrated indicator-based approach for constructing an urban flood vulnerability index as an urban decision-making tool using the PCA and AHP techniques: a case study of Alexandria, Egypt. Urban Climate, 48, p.101426. DOI: https://doi.org/10.1016/j.uclim.2023.101426

Adb (2013) E-government procurement handbook. Mandaluyong City, Philippines: Asian Development Bank

Addo, S. K. (2019). Challenges of E-procurement adoption in the ghana public sector: A survey of in the ministry of finance. Journal DOI, 10, 22501991.

Adebayo, V.O. and Evans, R.D., 2015. Adoption of e-procurement systems in developing countries: A Nigerian public sector perspective. In 2015 2nd International Conference on Knowledge-Based Engineering and Innovation (KBEI) (pp. 20-25). IEEE. DOI: https://doi.org/10.1109/KBEI.2015.7436015

Aduwo, E. B., Ibem, E. O., Uwakonye, O., Tunji-Olayeni, P. F., & Ayo-Vaughan, K., 2016. Barriers to the uptake of e-Procurement in the Nigerian building industry. Journal of Theoretical and Applied Information Technology, 89(1), 133-147.

Aduwo E.B., Ibem, E.O., Ayo-Vaughan E.A, Uwakonye U. O. and Owolabi. J.D, 2017. "E-PROCUREMENT USE IN THE NIGERIAN BUILDING INDUSTRY", International Journal of Electronic Commerce Studies, Vol.8, No.2, pp.180-215.

Aduwo, E.B., Ibem, E.O., Afolabi, A.O., Oluwnmi, A.O., Tunji-Olayeni, P.F., Ayo-Vaughan, E.A., Uwakonye, U.O. and Oni, A.A., 2020. Exploring anti-corruption capabilities of e-procurement in construction project delivery in Nigeria. Construction Economics and Building, 20(1), pp.56-76. DOI: https://doi.org/10.5130/AJCEB.v20i1.6964

Afolabi, A., Ibem, E., Aduwo, E. and Tunji-Olayeni, P., 2022. Digitizing the grey areas in the Nigerian public procurement system using e-Procurement technologies. International Journal of Construction Management, 22(12), pp.2215-2224. DOI: https://doi.org/10.1080/15623599.2020.1774836

Afolabi, A., Ibem, E., Aduwo, E., Tunji-Olayeni, P., & Oluwunmi, O. (2019). Critical success factors (CSFs) for e-Procurement adoption in the Nigerian construction industry. Buildings, 9(2), 47. DOI: https://doi.org/10.3390/buildings9020047

Agrawal, V., Seth, N., & Dixit, J. K., 2020. A combined AHP–TOPSIS–DEMATEL approach for evaluating success factors of e-service quality: an experience from Indian banking industry. Electronic Commerce Research, pp 1-33. DOI: https://doi.org/10.1007/s10660-020-09430-3

Akadiri, Peter O.; Olomolaiye, Paul O.; Chinyio, Ezekiel A. (2013). Multi-criteria evaluation model for the selection of sustainable materials for building projects. Automation in Construction, 30(), 113–125. DOI: https://doi.org/10.1016/j.autcon.2012.10.004

Altayyar, A., & Beaumont-Kerridge, J. (2016). External factors affecting the adoption of e-procurement in Saudi Arabian's SMEs. Procedia-Social and Behavioral Sciences, 229, 363-375. DOI: https://doi.org/10.1016/j.sbspro.2016.07.147

Altuwaijri, M. M., & Khorsheed, M. S., 2012. InnoDiff: A project-based model for successful IT innovation diffusion. International Journal of Project Management, 30(1), pp 37-47. DOI: https://doi.org/10.1016/j.ijproman.2011.04.007

Amalia, F., 2017. Socio-technical analysis of Indonesian government e-procurement system implementation: barriers to enhance information transparency and accountability. In SHS Web of Conferences (Vol. 34). Pp.1-8. DOI: https://doi.org/10.1051/shsconf/20173402003

Ateto, M.D., Nyanamba, S. O., & Okibo, W. (2013). The effect of e-procurement practices on effective procurement in public hospitals: A case of Kisii level 5 hospital. American International Journal of Contemporary Research, 3(8), 103-111.

Au, N.; Gary Ho, C.K. and Law, R., 2014. Towards an understanding of e-procurement adoption: A case study of six hotels in Hong Kong Tourism Recreation Research, Vol.39, Issue.1, pp. 19-38. [Google Scholar] DOI: https://doi.org/10.1080/02508281.2014.11081324

Azanlerigu, J. A., & Akay, E. (2015). Prospects and challenges of e-procurement in some selected public institutions in Ghana. European Journal of Business and Management, Vol 7, No.29, pg 61-76.

Bello WA, Iyagba RO., 2013. Comparative analysis of barriers to E-procurement among quantity surveyors in UK and Nigeria. Scott J Arts Soc Sci Sci Stud. 14(2): pp.175–187.

Benyoucef, M., & Canbolat, M., 2007. Fuzzy AHP-based supplier selection in e-procurement. International Journal of Services and Operations Management, 3(2), pp.172-192. DOI: https://doi.org/10.1504/IJSOM.2007.012136

Bienhaus, F. and Haddud, A., 2018. Procurement 4.0: factors influencing the digitisation of procurement and supply chains. Business Process Management Journal, 24(4), pp.965-984. DOI: https://doi.org/10.1108/BPMJ-06-2017-0139

Brandon-Jones, A., & Kauppi, K., 2018. Examining the antecedents of the technology acceptance model within e-procurement. International Journal of Operations & Production Management. Vol. 38, No.1, pp 22-40. DOI: https://doi.org/10.1108/IJOPM-06-2015-0346

Bhaukarally, N. and Ramesh, V., 2017. The Challenges and Benefits of Adopting E-Procurement–Reference to Mauritian Economy. International Journal of Management and Applied Science, 3(5), pp.92-96.

Bowersox, D.J., Closs, D.J., Cooper, M.B. and Bowersox, J.C., 2020. Supply chain logistics management (5th Ed). New York, NY: Mcgraw-hill.

Brown, J., 2009. Choosing the right number of components or factors in PCA and EFA. JALT Testing & Evaluation SIG Newsletter, 13(2). Pp.19-23.

Cardoso, A.L. and Biazzin, C., 2020. What is the value of e-procurement for suppliers? The drivers, barriers and opportunities for engaging MRO suppliers. International Journal of Procurement Management, 13(2), pp.278-297. DOI: https://doi.org/10.1504/IJPM.2020.106541

CERN, 2019. A Short history of the web. [online] available at [Website] accessed on 27/12/2023.

Chevalier, S., 2021. Retail e-commerce sales worldwide from 2014 to 2024 (in billion U.S. dollars). [Online] Available: [website] Accessed on 8, January 2022.

CIPS, 2022. What is e-procurement? [Online] Available: Accessed on 17 October 2022.

Coppala, D. (2021), Leading retail e-commerce countries worldwide in 2021, by sales shares.[online] Available: [website] Accessed on 9, January 2022.

Costa, A. A., Arantes, A., & Tavares, L. V., 2013. Evidence of the impacts of public e-procurement: The Portuguese experience. Journal of Purchasing and Supply Management, 19(4), 238-246 DOI: https://doi.org/10.1016/j.pursup.2013.07.004

Creswell, J.W. and Creswell, J.D. (2018) Research Design: Qualitative, Quantitative, and Mixed Methods Approach (5th ed.). Los Angeles: Sage.

Daoud, L. and Ibrahim, M., 2017. A conceptual model of factors affecting e-procurement usage and impact among Jordanian listed firms: the moderating role of environmental uncertainty. Journal of Advanced Research in Business and Management Studies, 9(1), pp.36-44.

Deepika, M., 2023. Selection of ideal supplier in e-procurement for manufacturing industry using intuitionistic fuzzy AHP. International Journal of Business Performance and Supply Chain Modelling, 14(1), pp. 56-78. DOI: https://doi.org/10.1504/IJBPSCM.2023.130484

de Sherbinin, A. and Bardy, G., 2015. Social vulnerability to floods in two coastal megacities: New York City and Mumbai. Vienna Yearbook of Population Research, pp.131-165. DOI: https://doi.org/10.1553/populationyearbook2015s131

Dixit, S., Mandal, S. N., Thanikal, J. V., & Saurabh, K., 2019. Study of significant factors affecting construction productivity using relative importance index in Indian construction industry. In E3S web of conferences (Vol. 140, p. 09010). EDP Sciences. DOI: https://doi.org/10.1051/e3sconf/201914009010

Dwivedi, Y. K., Ismagilova, E., Hughes, D. L., Carlson, J., Filieri, R., Jacobson, J., & Wang, Y. (2021). Setting the future of digital and social media marketing research: Perspectives and research propositions. International Journal of Information Management, 59, 102168. DOI: https://doi.org/10.1016/j.ijinfomgt.2020.102168

Eadie R., Perera S., and Heany G., 2010. Identification of e-procurement drivers and barriers for UK construction organisations and raking of these from the perspective of quantity surveyors. Journal of Information Technology in Construction, Vol.15, pp. 23-43

E-commerce Nations (2016) The evolution of E-commerce, Where to Next? [online] available at [Website]. Accessed on (01/01/2021).

Eei, K.S., Husain, W. and Mustaffa, N., 2012. Survey on benefits and barriers of e-procurement: Malaysian SMEs perspective. International Journal on Advanced Science Engineering Information Technology, 2(6), pp.14-19. DOI: https://doi.org/10.18517/ijaseit.2.6.238

Edwin, A. M. and Peter, M.J. 2014. Drivers and Inhibitors to E-Commerce Adoption among SMEs in Nigeria, Journal of Emerging Trends in Computing and Information Sciences, 5(3), pp 192-199.

Field, A.P. (2018) Discovering Statistics Using IBM SPSS Statistics. 5th Edition, Sage, Newbury Park.

Govender, N.M. and Pretorius, M., 2015. A critical analysis of information and communications technology adoption: The strategy-as-practice perspective. Acta Commercii, 15(1), pp.1-13. DOI: https://doi.org/10.4102/ac.v15i1.229

Gunduz, M., & Almuajebh, M., 2020. Critical success factors for sustainable construction project management. Sustainability, 12(5), p. 1990. DOI: https://doi.org/10.3390/su12051990

Hair, J.F., Black, W.C., Babin, B.J., Anderson, R.E., Black, W.C. and Anderson, R.E., 2019. Multivariate data analysis (8th Ed). Hampshire, United Kingdom: Cengage Learning EMEA.

Hartanto, T., Ginting, M., & Sunardi, O., 2019. A Fuzzy Analytic Hierarchy Process approach for determining the criteria success factors of MRT parts’ e-procurement: the case of Jakarta MRT project. In IOP Conference Series: Materials Science and Engineering (Vol. 528, No. 1, p. 012001). IOP Publishing. DOI: https://doi.org/10.1088/1757-899X/528/1/012001

Ibem, E.O., Aduwo, E.B. and Ayo-Vaughan, E.A., 2017. e-Procurement adoption in the Nigerian building industry: Architects’ perspective. Pollack Periodica, 12(3), pp.167-180. DOI: https://doi.org/10.1556/606.2017.12.3.15

Ibem, E. O., Aduwo, E. B., Tunji-Olayeni, P., Ayo-Vaughan, E. A., & Uwakonye, U. O. (2016). Factors influencing e-Procurement adoption in the Nigerian building industry. Construction Economics and Building, 16(4), 54-67. DOI: https://doi.org/10.5130/AJCEB.v16i4.4984

Ibem, E. O., & Laryea, S. (2015). e-Procurement use in the South African construction industry. Journal of Information Technology in Construction (ITCon), 20(23), 364-384.

Laryea, S. and Ibem, E., 2014. Barriers and prospects of e-procurement in the South African construction industry 7th Annual Quantity Surveying Research Conference, 22-23 22–23, 2014, Pretoria, South Africa.

Ikumoro, A.O. and Jawad, M.S., 2019. Intention to use intelligent conversational agents in e-commerce among Malaysian SMEs: an integrated conceptual framework based on tri-theories including unified theory of acceptance, use of technology (UTAUT), and TOE. International Journal of Academic Research in Business and Social Sciences, 9(11), pp.205-235. DOI: https://doi.org/10.6007/IJARBSS/v9-i11/6544

ITC (2022). Promoting SME Competitiveness in South Sudan. [online] available from [Website] Accessed on 20 March 2023.

Johnson, J. W., & LeBreton, J. M., 2004. History and use of relative importance indices in organizational research. Organizational research methods, 7(3), pp. 238-257. DOI: https://doi.org/10.1177/1094428104266510

Kaiser, H.F. and Rice, J. (1974) Little Jiffy, Mark Iv. Educational and Psychological Measurement, 34, pp,111-117. DOI: https://doi.org/10.1177/001316447403400115

Masudin, I., Aprilia, G. D., Nugraha, A., & Restuputri, D. P., 2021. Impact of E-procurement adoption on company performance: Evidence from Indonesian manufacturing industry. Logistics, 5(1), p.16. DOI: https://doi.org/10.3390/logistics5010016

Mohd Daud, N., Mohammad, N., Azmi, A.E. and Mohamed, I.S., 2013. Factors influencing the usage of e-Procurement among contractor companies in Malaysia. Business and Management Quarterly Review (BMQR), 4(3&4), pp.62-80.

Mullakhmetov, K.S., 2018. Technological factors and management transformation in social and economic systems. European Research Study Journal. 21(3). pp.230-241. DOI: https://doi.org/10.35808/ersj/1056

Nawi, M. N. M., Roslan, S., Salleh, N. A., Zulhumadi, F., & Harun, A. N. (2016). The benefits and challenges of E-procurement implementation: a case study of Malaysian company. International Journal of Economics and Financial Issues, 6(7S), 329-332.

Nazima, B., & Vani, R. (2017). The challenges and benefits of adopting e-procurement–reference to Mauritian economy. International Journal of Management and Applied Science, 3(5). Pg.92-96.

Neuman, W.L. (2014) Social Research Methods: Qualitative and Quantitative Approaches. 7th Ed. Pearson Education Limited. Harlow, England.

Nielsen, 2020. Overcoming Online Shopping Obstacles Amid Lockdowns in Africa and the Middle East Is Not Only Retailer Driven. [online]: available: [website] access on 26 June 2020

Nitharsan, N. and Francis, M., 2022. Adaptability of blockchain-based E-Procurement system in Sri Lankan construction projects. World Constructions Symposium. Pp,66-75. DOI: https://doi.org/10.31705/WCS.2022.6

OECD (2017), “E-procurement”, in Government at a Glance 2017, OECD Publishing, Paris.

Palit, T., Bari, A. M., & Karmaker, C. L., 2022. An integrated Principal Component Analysis and Interpretive Structural Modeling approach for electric vehicle adoption decisions in sustainable transportation systems. Decision Analytics Journal, 4, p.100119. DOI: https://doi.org/10.1016/j.dajour.2022.100119

Peterdy, K., 2022. Pestel Analysis. [online] available from Accessed on 11 Oct 2022.

Priyatna, R. and Sunandar, A., 2021. Analysis of The Key Success Factors of Electronic Procurement (E-Proc) Projects at Ministry X. IJIEEB International Journal of Integrated Education, Engineering and Business ISSN 2615-1596 ISSN 2615-2312, 4(1), pp.7-12.

Rajput, S. and Singh, S.P., 2019. Connecting circular economy and industry 4.0. International Journal of Information Management, 49, pp.98-113. DOI: https://doi.org/10.1016/j.ijinfomgt.2019.03.002

Ramkumar, M., Schoenherr, T., Wagner, S.M. and Jenamani, M., 2019. Q-TAM: A quality technology acceptance model for predicting organizational buyers’ continuance intentions for e-procurement services. International Journal of Production Economics, 216, pp.333-348. DOI: https://doi.org/10.1016/j.ijpe.2019.06.003

Reverso Dictionary., 2022. organizational factors meaning, organizational factors definition. [online] available from [Website] Accessed on 05 November 2022.

Saaty, T. L., 2008. Decision making with the analytic hierarchy process. International journal of services sciences, 1(1), pp. 83-98. DOI: https://doi.org/10.1504/IJSSCI.2008.017590

Statista, 2021. E-commerce revenue in Africa in 2017 to 2015. (in millions US dollars). [online] Available [website] Accessed on 9, January 2022.

Stockemer, D., 2019. Quantitative methods for the social sciences: A Practical Introduction with Examples in SPSS and Stata. Springer International Publishing AG, Gewerbestrasse 11, 6330 Cham, Switzerland. DOI: https://doi.org/10.1007/978-3-319-99118-4

Teo, T.S., Lin, S. and Lai, K.H., 2009. Adopters and non-adopters of e-procurement in Singapore: An empirical study. Omega, 37(5), pp.972-987 DOI: https://doi.org/10.1016/j.omega.2008.11.001

The Asian Banker, 2020. Nigeria, South Africa, and Kenya dominate e-commerce industry in Sub-Saharan Africa. [online] available from [Website] accessed on 27/12/2023.

Thong, J.Y., 1999. An integrated model of information systems adoption in small businesses. Journal of management information systems, pp.187-214. DOI: https://doi.org/10.1080/07421222.1999.11518227

Toktaş-Palut,P., Baylav,E., Teoman,S., & Altunbey,M., 2014. The impact of barriers and benefits of e-procurement on its adoption decision: An empirical analysis. International Journal of Production Economic. 158(2014), pp.77-99. DOI: https://doi.org/10.1016/j.ijpe.2014.07.017

Tornatzky, L.G. and Fleischer, M. (1990) The Processes of Technological Innovation. Lexington Books, Lexington.

Török, I., 2018. Qualitative assessment of social vulnerability to flood hazards in Romania. Sustainability, 10(10), p.3780. DOI: https://doi.org/10.3390/su10103780

Tran, L.T., O'Neill, R.V. and Smith, E.R., 2010. Spatial pattern of environmental vulnerability in the Mid-Atlantic region, USA. Applied Geography, 30(2), pp.191-202. DOI: https://doi.org/10.1016/j.apgeog.2009.05.003

Xiaolin Li, Sharma Pillutla, Huaming Zhou & Dong-Qing Yao., 2015. Drivers of Adoption and Continued Use of E-Procurement Systems: Empirical Evidence from China, Journal of Organizational Computing and Electronic Commerce, 25:3, 262-288, DOI: https://doi.org/10.1080/10919392.2015.1058113

Yamane, T. (1967). Statistics: An introductory analysis (No. HA29 Y2 1967).

Yevu, S. K., & Yu, A. T. W., 2019. The ecosystem of drivers for electronic procurement adoption for construction project procurement: A systematic review and future research directions. Engineering, construction, and architectural management Engineering Construction and Architectural Management.Vol.27, No. 2, pp. 411-440. DOI: https://doi.org/10.1108/ECAM-03-2019-0135

Yevu, S.K., Yu, A.T.W. and Darko, A., 2021. Barriers to electronic procurement adoption in the construction industry: a systematic review and interrelationships. International Journal of Construction Management, 23(6), pp.1-15. DOI: https://doi.org/10.1080/15623599.2021.1946900

World bank (2018) Rwanda Pioneering e-Procurement in Africa. [online]: available at [Website] accessed on 07/07/2019.

Zunk, B.M., Marchner, M.J., Uitz, I., Lerch, C. and Schiele, H., 2014. The role of E-procurement in the Austrian construction industry: Adoption rate, benefits and barriers. International journal of industrial engineering and management, 5(1), pp.13-21. DOI: https://doi.org/10.24867/IJIEM-2014-1-102

Downloads

Published

2024-02-24

How to Cite

Jama, E. M., Mwanza, B. G., & Mwanaumo, E. M. . (2024). E-procurement Adoption Barriers encountered by Small and Medium-sized Enterprises (SMEs) in the Republic of South Sudan. African Journal of Commercial Studies, 4(1), 48-68. https://doi.org/10.59413/ajocs/v4.i1.5