Effect of E-Procurement on the Performance of a Wholesale Pharmacy: A Case of KIPHARMA- Rwanda (2018-2022)

Abstract

The general objective of this study was to assess the effect of e-procurement on the performance of Kipharma- Rwanda. Especially the study examined the effect of the e-tendering on the performance of KIPHARMA-Rwanda, assessed the effect of e-auction on the performance of KIPHARMA-Rwanda, found out the effects of e-purchasing on the performance of KIPHARMA-Rwanda and found out the effects of e-invoicing on the performance of KIPHARMA-Rwanda. This study refers and uses the theories like Stakeholder Theory and Agency theory. For this study, correlation analysis was used. Both quantitative (questionnaire) and qualitative (interview) research techniques were used by researcher in order to collect data (information) related to the objectives of the study. The entire target population of the study who are supposed to provide the information data related to the objectives of the research study was based on employees of Kipharma-Rwanda who are totalized to 97 employees The researcher has decided to use a census inquiry method instead of sampling due to the relatively small number of individuals in the population. The research relied on questionnaire technique, interview and Documentation technique. Views that were given by the respondents were analyzed through SPSS 23rd version. The R value of 0.922 indicates a strong positive correlation between the predictors (e-invoicing, e-tendering, e-auction, e-purchasing) and the dependent variable. The R Square value of 0.851 signifies that approximately 85.1% of the variability in the performance of KIPHARMA-Rwanda can be explained by the independent variables in the model. For e-tendering (β= 0.297, t = 4.252, p=0.000 < 0.05). Similarly, e-auction shows a positive effect (β= 0.216, t = 3.054, p = 0.003< 0.05). E-purchasing and e-invoicing also have positive effects, contributing to the performance of KIPHARMA-Rwanda, (β= 0.244, t = 2.422, p = 0.018< 0.05) and (β= 0.247, t = 2.530, p = 0.013< 0.05) respectively. These results indicates that the adoption of e-procurement practices, including e-tendering, e-auction, e-purchasing, and e-invoicing, is associated with positive effects on the performance of KIPHARMA-Rwanda. All p-values are statistically significant at p < 0.05, reinforcing the strong relationships. KIPHARMA-Rwanda should focus on enhancing skills related to e-tendering processes, ensuring that all stakeholders are well-equipped to leverage the system effectively. Keywords: E-procurement, E-tendering, E- invoicing, E-purchasing, E-auction and Performance.