Effect of E-Procurement Practice on Performance of Manufacturing Industry

Abstract

E-procurement is gaining popularity in recent time as it reduces the problems of lack of accountability and transparency in procurement activities. However, the procurement operations within manufacturing companies have been marred with lack of proper direction, poor coordination, slow with a lot of bureaucracy, lack of competition and transparency, wastages, delay in delivery, poor quality, high levels of corruption and instances of glaring incompetence in managing the procurement function. This study therefore examines the impact of e-procurement practice on performance of manufacturing industry in Nigeria. The study adopted cross-sectional survey approach and employs census method on all the 74 respondents. In addition, questionnaire instrument was used for the data collection. PLS-SEM path modeling was employed to analyze the data collected. The result revealed that e-procurement practice has impact on performance of manufacturing industry in Nigeria. The study concluded that, e-procurement (E-sourcing. E-tendering, E-ordering and E-payment) have significant impact on performance of manufacturing industry in Nigeria. Recommendations were proffered in line with findings of the study.