Adoption of E-Procurement and Its Effects on Firm Performance in Ghana's Construction Sector
DOI:
https://doi.org/10.47941/ijdcs.2484Keywords:
E-Procurement, Construction Industry, Ghana, Firm Performance, AdoptionAbstract
Purpose: This study investigates the impact of e-procurement adoption on firm performance in Ghana’s construction sector, with a focus on procurement transparency, cost reductions, and operational efficiency.
Methodology: A mixed-method approach was adopted, with data collected from 60 procurement officers and project managers in Accra.
Findings: The study reveals a significant positive correlation between e-procurement usage and firm profitability (mean = 3.59) and competitiveness (mean = 4.00). Quantitative results indicate that e-procurement led to a reduction in procurement costs by 10-15%, while qualitative insights highlight the need for capacity-building initiatives to overcome resistance to technological change. However, challenges such as unreliable energy supply (mean = 4.02) and limited technological integration hinder the full potential of e-procurement.
Unique Contribution to Theory, Policy and Practice: These findings suggest that e-procurement can play a crucial role in improving efficiency, transparency, and competitiveness in Ghana’s construction sector, provided systemic challenges are addressed.
Downloads
References
Adamson, Katie & Prion, Susan. (2013). Reliability: Measuring Internal Consistency Using
Cronbach's α. Clinical Simulation in Nursing. 9. e179-e180. 10.1016/j.ecns.2012.12.001.
Addo, S. K. (2019). Challenges of E-Procurement Adoption in the Ghana Public Sector: A Survey
of in the Ministry of Finance. 1(7), 44–80. https://doi.org/10.15373/22501991
Adzroe, Eric & Awuzie, B.O. (2018). Leveraging e-business technology for construction
procurement improvement: Qualitative perspectives from Ghana. International Journal of
Construction Supply Chain Management. 8. 43-59. 10.14424/ijcscm801018-43-59.
Afolabi, Adedeji & Ibem, Eziyi & Aduwo, Egidario & Tunji-Olayeni, Patience & Oluwunmi,
Olufunke. (2019). Critical Success Factors (CSFs) for e-Procurement Adoption in the
Nigerian Construction Industry. Buildings. 9. 1-18. 10.3390
Ajayi, Victor. (2017). Primary Sources of Data and Secondary Sources of Data.
Asare, E. N., & Kufuor, K. O. (2021). E-procurement: Transforming procurement processes
through digital platforms. Journal of Procurement and Supply Chain Management, 8(2),
-58.
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, 7(29), 61-76.
Bahamid, R. A., Doh, S. I., Khoiry, M. A., Kassem, M. A., & Al-Sharafi, M. A. (2022). The current
risk management practices and knowledge in the construction industry. Buildings,
(1016).
Boateng, A., Ameyaw, C., & Mensah, S. (2022). Assessment of systematic risk management
practices on building construction projects in Ghana. International Journal of Construction
Management, 22(16), 3128-3136.
Bruce, Emmanuel & Shurong, Zhao & Ying, Du & Yaqi, Meng & Amoah, John & Bankuoru
Egala, Sulemana. (2023). The Effect of Digital Marketing Adoption on SMEs Sustainable
Growth: Empirical Evidence from Ghana. Sustainability. 15. 4760. 10.3390/su15064760.
Chan, Albert & Owusu, Emmanuel. (2022). Evolution of Electronic Procurement: Contemporary
Review of Adoption and Implementation Strategies. Buildings. 12. 198.
3390/buildings12020198.
Chang, Hsin-Hsin & Tsai, Yao-Chuan & Hsu, Che-Hao. (2013). E-procurement and supply chain
performance. Supply Chain Management: An International Journal. 18.
1108/13598541311293168.
Croom, S., & Brandon-jones, A. (2016). Key issues in e-procurement: Procurement
implementation and operation in the public sector. September.
https://doi.org/10.1108/JOPP-05-03-2005-B004
Frimpong S. (2014). Ghana begins electronic procurement system, Ghana Business News, Daily
Graphic; Available: https://www.ghanabusinessnews.com
Gamal Aboelmaged, M. (2010). Predicting e‐procurement adoption in a developing country: An
empirical integration of technology acceptance model and theory of planned
behaviour. Industrial Management & Data Systems, 110(3), 392-414.
GSS (Ghana Statistical Service) (2022). Ghana Living Standards Survey: Labour Force Report.
Accra: GSS.
Hamma-adama, M., & Ahmad, A.-B. S. (2021). Challenges and Opportunities of E-Procurement
in the Construction Industry. Journal of Construction Materials, 2(4), 4–7.
https://doi.org/10.36756/jcm.v2.4.7
Hashim, Norfashiha & Said, Ilias & Hidayah, Nur. (2013). Exploring e-Procurement Value for
Construction Companies in Malaysia. Procedia Technology. 9. 836-845.
1016/j.protcy.2013.12.093.
Ibem, Eziyi & Laryea, Samuel. (2015). EProcurement use in the South African construction
Industry. Journal of Information Technology in Construction (ITcon). 20. 364-384.
Ibrahim Tanko, Gampine. (2023). Business Digital Maturity and Organizational Performance: An
Empirical Analysis of Service Sector Firms in a Developing Context. 10.7176/EJBM/15-
-07.
Ilhan, Nergiz & Rahim, Md. (2020). Understanding Digital Transformation of Procurement
Through E-Procurement Systems Implementation: Business Partner Relationship
Perspective. 10.4018/978-1-7998-2799-3.ch010.
Kamotho, K., & Kamotho, D. K. (2014). E-Procurement and Procurement Performance among
State Corporations in Kenya. In International Journal of Science and Research (Vol. 8,
Issue 2). http://erepository.uonbi.ac.ke/handle/11295/76295
Kumar, Nripendra & Ganguly, Kunal. (2020). External diffusion of B2B e-procurement and firm
financial performance: role of information transparency and supply chain coordination.
Journal of Enterprise Information Management. 10.1108/JEIM-02-2020-0060.
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 Vol. 6, No. 7, pp. 329-332.
Ofori, Daniel & Fuseini, Osman. (2020). Electronic Government Procurement Adoption in Ghana:
Critical Success Factors. Advances in Research. 18-34. 10.9734/air/2020/v21i330191.
Owoo, Nkechi S.; Lambon-Quayefio, Monica P. (2018): The role of the construction sector in
Ghana, WIDER Working Paper, No. 2018/119, ISBN 978-92-9256-561-9, The United
Nations University World Institute for Development Economics Research (UNU-
WIDER), Helsinki, https://doi.org/10.35188/UNU-WIDER/2018/561-9
Pheng, L. S., & Hou, L. S. (2019). The Economy and the Construction Industry. Construction
Quality and the Economy: A Study at the Firm Level, 21–54. https://doi.org/10.1007/978-981-13-5847-0_2
Public Procurement Authority (PPA). (2022). Implementation of the Ghana's electronic
procurement system (GHANEPS). Public Procurement Authority.
https://ppa.gov.gh/implementation-of-the-ghanas-electronic-procurement-system-ghaneps/
Roberts, R., Flin, R., Millar, D., & Corradi, L. (2021). Psychological factors influencing
technology adoption: A case study from the oil and gas industry. Technovation, 102,
https://doi.org/10.1016/j.technovation.2020.102219
Tai, Yi-Ming & Ho, Chin-Fu & Wu, Wen-Hsiung. (2010). The performance impact of
implementing Web-based e-procurement systems. International Journal of Production
Research - INT J PROD RES. 48. 5397-5414. 10.1080/00207540903117915.
Tamilmani, K., Rana, N. P. and Dwivedi, Y. K. (2020). "Consumer Acceptance and Use of
Information Technology: A MetaAnalytic Evaluation of UTAUT2" , Information Systems
Frontiers
Tornatzky, L. G., & Fleischer, M. (1990). The processes of technological innovation. Lexington,
MA: Lexington Books.
Touray, Almamy & Salminen, Airi & Mursu, Anja. (2013). ICT Barriers and Critical Success
Factors in Developing Countries. Electronic Journal of Information Systems in Developing
Countries. 56. 10.1002/j.1681-4835.2013.tb00401.x.
Tutu, S. O., Kissi, E., Osei-Tutu, E., & Desmond, A. (2019). Evaluating critical factors for the
implementation of e-procurement in Ghana. International Journal of Procurement
Management, 12(1), 1-14.
World Bank. (2023). Drivers of delays in procurement of infrastructure projects. International
Bank for Reconstruction and Development / The World Bank.
https://documents1.worldbank.org/curated/en/P173110138cdf70ef18cd21fb78946336
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Andrew Nimako-Boateng

This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.