E-procurement and supply chain performance in emerging economies: A study of manufacturing sector in Ghana

Abstract

Electronic procurement has become one of the leading methods for purchasing goods and services in today's competitive environment. Research indicates that e-procurement influences business outcomes, including the output of the supply chain. However, factors that affect the relationship between e-procurement and supply chain performance have not received significant attention in the procurement literature. Based on this the current research aimed at investigating the effects of e-procurement on supply chain performance, as well as the mediating role of supplier efficiency and quality of information. The study further tested the interaction effects of perceived ease of use, perceived usefulness and top management support on the link between e-procurement and supply chain performance. Structured questionnaire was used to obtain data from a sample of 439 employees from the manufacturing sector in Ghana. The study was guided by the Technology Acceptance Model theory. Structural equation modelling was used to test the direct effects, mediation and moderation effects of the intervening variables. The findings indicate that, statistically, e-procurement exerts positive and significant influence on supply chain performance and drives supplier efficiency and quality of information. However, the effect of supplier efficiency on supply chain performance proved otherwise. Quality of information exerts a significant positive effect on supply chain performance. Furthermore, supplier efficiency and quality of information were found to be significant mediators between e-procurement and supply chain performance. Regarding the moderating effects, the interaction effect of perceived ease of use is statistically significant on the link between e-procurement and supply chain performance, but perceived usefulness and top management support are statistically insignificant. Theoretically, the study deepens the understanding of the mediating and moderating mechanisms that influence the relationship between e-procurement and supply chain performance in the manufacturing sector in a developing economy. The study has valuable implications for industry players, particularly procurement and supply chain management professionals and policy makers seeking to improve procurement and enhance the performance of their supply chains.