Abstract
The emergence of electronic procurement system has revolutionized the discipline of procurement management. To date, however, very little research has been carried on this subject at the Ghana mining industry. This paper examines the level of adoption and role of e-procurement in enhancing responsiveness of procurement management at the mining industry, Ghana. Purposive random sampling was employed to select 26 respondents from 13 large scale mining companies on which structured questionnaires were administered and analyzed using linear regression. The rate of e-procurement adoption appears low at the Ghana mining sector, which the study has unveiled. Quantitatively 24% (R 2 =0.24) part of the companies’ procurement process is being enhanced by e-procurement systems, yet resulting in efficiency and effectiveness in their procurement management. The companies’ pilot e-procurement systems with manual system to get procurement executed though much into the orthodox manual system relatively. It is then recommended that the mining companies intensify usage of e-procurement systems to get the optimum impact on procurement management responsiveness. Keywords: E-procurement, E-procurement Adoption, procurement management, Mining sector, Ghana. DOI : 10.7176/EJBM/11-25-07 Publication date :September 30 th 2019
Highlights
E-procurement has recently gained dominance in many organizations worldwide due to technological advancements which have made business operations easier, faster and more efficient in today’s competitive global village
Drawing on the reviews above, the present study focuses on Ghana mining industry to examine two major objectives: a] level of e-procurement adoption at the mining industry and b] role of e-procurement to enhancing responsiveness of the companies procurement Management. 1.1.2 Significance of the study Driven by the increasing trend toward purchasing inputs and other raw materials from outside the organization, implementing electronic procurement (e-procurement) has become a significant tactic in most companies’ ebusiness strategies, Deloitte Consulting,( 2001) has stated
Literature identified a number of benefits arising from the introduction of e-procurement yet the adoption rate appears low at the Ghana mining industry. 24% (R2=0.24) of the procurement process is facilitated by eprocurement, resulting in little efficiency and effectiveness in the procurement management of the Mining companies
Summary
E-procurement has recently gained dominance in many organizations worldwide due to technological advancements which have made business operations easier, faster and more efficient in today’s competitive global village. It encompasses all activities involved in obtaining goods and services and managing their inflow into an organization toward the end user through the internet (Lee et al, 2007). It refers to the use of internet-based system to carry out individual or all stages of procurement process, including search, sourcing, negotiation; ordering, receipt, and post-purchase review (Croom & Brandon, 2004) This has been facilitated by the growth in information and communication technology which has led to electronic commerce, commonly referred to as ecommerce. Like other functions embraced by e-commerce, the procurement function has positively been impacted with a predicted growth in e-procurement applications covering both transactional buying and strategic sourcing activities (Greunen et al, 2010)
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