Bosco Disertation

E-PROCUREMENT PRACTICES AND PERFORMANCE OF LOCAL
GOVERNMENT ENTITIES IN UGANDA, A CASE OF GULU

DISTRICT LOCAL GOVERNMENT
BY
ONEKALIT BOSCO
19/MPP/KLA/WKD/0001
A DISSERTATION SUBMITTED TO THE SCHOOL OF MANAGEMENT SCIENCE
IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE A WARD OF
MASTER’S DEGREE IN PUBLIC PROCUREMENT OF
UGANDA MANAGEMENT INSTITUTE
OCTOBER, 2022
DECLARATION
I, ONEKALIT BOSCO, declare that this dissertation entitled “E-procurement practices and
performance of local government entities in Uganda: the case of Gulu district local
government” is my own original work and it has not been presented and will not be presented
to any other institution for any academic award. Where other people’s work has been used,
this has been duly acknowledged.
Sign ……………………………………. Date………………………………..
ONEKALIT BOSCO
19/MPP/KLA/WKD/0001
i
APPROVAL
This is to certify that this dissertation by ONEKALIT BOSCO entitled “E-procurement
practices and performance of local government entities in Uganda, a case of Gulu district
local government” has been submitted for examination with our approval as Institute
supervisors.
Sign ……………………………………. Date………………………………..
DR. BAGUMA INNOCENT
SUPERVISOR
Sign ……………………………………. Date………………………………..
MR. JOSEPH BUFWAMBU
SUPERVISOR
ii
DEDICATION
This dissertation is dedicated to my family members most especially my dear husband, my
children and my parents for their financial support and moral encouragement.
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ACKNOWLEDGEMENT
I am deeply indebted to my research supervisors Dr. Baguma Innocent and Mr. Joseph
Bufwambu for their patience with my inadequacies as they guided me through the research
process. Without your parental and professional input, this research would have been difficult
to elevate to its current level.
I acknowledge with gratitude the contributions and co-operation made by the respondents
from Gulu District Local Government for their willingness to provide the necessary
information when I visited their college during the research process. Without their
cooperation, this study would have been impossible to accomplish.
I also thank my colleagues at Uganda Management Institute, persons who dealt with
secretarial work and those who read through the questionnaires and perfected the draft report.
I deeply treasure the contributions of all the above persons and ask God Almighty to richly
bless them.
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TABLE OF CONTENTS
DECLARATION.......................................................................................................................i
APPROVAL.............................................................................................................................ii
DEDICATION........................................................................................................................iii
TABLE OF CONTENTS.........................................................................................................v
LIST OF TABLES...................................................................................................................x
LIST OF FIGURES................................................................................................................xi
ABSTRACT...........................................................................................................................xii
CHAPTER ONE......................................................................................................................1
INTRODUCTION...................................................................................................................1
1.1 Introduction..........................................................................................................................1
1.2 Background of the study......................................................................................................1
1.2.1 Historical Background......................................................................................................1
1.2.2 Theoretical Background....................................................................................................3
1.2.3 Conceptual Background....................................................................................................4
1.2.4 Contextual Background....................................................................................................5
1.3 Statement of the problem.....................................................................................................6
1.4 Purpose of the study.............................................................................................................6
1.4.1 The specific objectives.....................................................................................................7
1.5 Research Questions..............................................................................................................7
1.6 Hypothesis of the study.......................................................................................................7
1.7 Conceptual framework.........................................................................................................7
1.8 Justification of the study......................................................................................................8
1.9 Significance of the study.....................................................................................................8
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1.10 Scope of the study..............................................................................................................9
1.10.2 Geographical scope.........................................................................................................9
1.10.3 Time scope......................................................................................................................9
1.11 Operational definitions......................................................................................................9
CHAPTER TWO...................................................................................................................11
LITERATURE REVIEW.....................................................................................................11
2.1 Introduction........................................................................................................................11
2.2 Theoretical review.............................................................................................................11
2.3 Review of the related literature..........................................................................................12
2.3.1 E-tendering and performance.........................................................................................12
2.3.2 E-ordering and performance...........................................................................................14
2.3.3 E-payments and performance.........................................................................................16
2.4 Summary of Literature.......................................................................................................18
CHAPTER THREE...............................................................................................................19
METHODOLOGY................................................................................................................19
3.1 Introduction........................................................................................................................19
3.2 Research design.................................................................................................................19
3.3 Study Population................................................................................................................19
3.4 Sample Size and selection.................................................................................................19
3.5 Sampling methods and Procedure.....................................................................................20
3.5.1 Simple random................................................................................................................20
3.5.2 Purposive technique........................................................................................................20
3.6 Data collection methods....................................................................................................20
3.6.1. Questionnaire survey.....................................................................................................21
3.6.2 Interview.........................................................................................................................21
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3.6.3 Document review method...............................................................................................21
3.7 Data collection instruments...............................................................................................21
3.7.1 Self-Administered Questionnaire (SAQ)........................................................................21
3.7.2 Interview Guide..............................................................................................................22
3.7.3. Documentary checklist..................................................................................................22
3.8 Quality control of the instruments.....................................................................................22
3.8.1 Validity of the instrument...............................................................................................22
3.8.2 Reliability of data acquisition equipment......................................................................23
3.9 Procedure of Data collection.............................................................................................23
3.10 Data Analysis...................................................................................................................24
3.10.1 Quantitative analysis.....................................................................................................24
3.10.2 Qualitative analysis.......................................................................................................24
3.11 Measurement of Variables...............................................................................................24
3.12 Ethical Considerations.....................................................................................................25
CHAPTER FOUR.................................................................................................................26
DATA PRESENTATION, ANALYSIS AND INTERPRETATION................................26
4.1 Introduction........................................................................................................................26
4.2 Response rate.....................................................................................................................26
4.3 Findings on background characteristics.............................................................................26
4.3.1 Respondents by Gender..................................................................................................27
4.3.2 Age group of respondents...............................................................................................27
4.3.3: Education level of respondents......................................................................................28
4.3.4 Duration in the organization...........................................................................................28
4.4 E-tendering procurement practice and performance..........................................................30
4.5 E-ordering procurement practice and performance...........................................................33
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4.7 Performance.......................................................................................................................39
CHAPTER FIVE...................................................................................................................42
SUMMARY, DISCUSSION, CONCLUSIONS AND RECOMMENDATION...............42
5.1 Introduction........................................................................................................................42
5.2 Summary of findings.........................................................................................................42
5.2.1 E-tendering procurement practice and performance.......................................................42
5.2.2 E-ordering procurement practice and performance........................................................42
5.2.3 E-payments procurement practice and performance......................................................42
5.3 Discussion of Results.........................................................................................................42
5.4 Conclusion.........................................................................................................................45
5.5 Study Recommendations...................................................................................................46
5.6 Areas recommended for further research..........................................................................47
REFERENCES......................................................................................................................48
APPENDIX 1: QUESTIONNAIRE FOR THE RESPONDENTS.......................................i
APPENDIX II: INTERVIEW GUIDE FOR KEY INFORMANTS..................................iv
APPENDIX III: DOCUMENT REVIEW CHECKLIST...................................................vi
viii
LIST OF TABLES
Table 3.1: Study Population and Sample Composition...........................................................26
Table 3.2: Results of content validity for research tools.........................................................29
Table 3.3: Reliability test results of research instruments.......................................................30
Table 4.4: Response rate of respondents.................................................................................34
Table 4.5: Gender of respondents............................................................................................35
Table 4.6: Response on E-tendering procurement practice and performance.........................39
Table 4.7: Pearson correlation results for E-tendering and performance................................43
Table 4.8: E-ordering procurement practice and performance................................................43
Table 4.9: Pearson correlation results for E-ordering and performance..................................46
Table 4.10: Responses about E-payments procurement practice and performance................47
Table 4.11: Pearson correlation coefficient for E-payments procurement practice and
performance.............................................................................................................................49
Table 4.12: Multiple Regression Analysis Summaries............................................................50
Table 4.13: Response on performance.....................................................................................53
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LIST OF FIGURES
Figure 1.1: Conceptual framework showing relationship between E-procurement and
performance of local government entities...............................................................................10
Figure 4.2: Age group of respondents.....................................................................................36
Figure 4.3: Highest Level of Education the Respondents.......................................................37
Figure 4.4: Duration in the organization..................................................................................38
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ABSTRACT
The study examined the influence of e-procurement practice on performance in Gulu District
Local Government. The specific objectives included; to examine the influence of e-tendering
on performance at Gulu District Local Government, to determine the influence of e-ordering
on performance at Gulu District Local Government and to examine the influence of e-
payments on performance at Gulu District Local Government. The study adopted cross
sectional and descriptive research design where both qualitative and quantitative approaches
of research were used and a total number of 84 respondents was covered. Data was analysed
using thematic analysis for qualitative while SPSS were used. The study findings revealed
that adoption of e-tendering positively and significantly affects performance at Gulu District
Local Government (Beta = 0. 726, Sig = 0.001). The study findings in the Table 4.9
established that adoption of e-ordering positively and significantly affects procurement
performance at Gulu District Local Government (Pearson coefficient = 0. 875, Sig = 0.000).
The study findings in the Table 4.1 established that adoption of E-payments positively and
significantly affects procurement performance at Gulu District Local Government (Pearson
coefficient = 0.769, Sig = 0.000). It is also recommended that there is a need for the public
institutions to adopt the least practiced e-tendering practices such as e-awarding in order to
reduce the transaction costs and speed up the procurement process, there is a need for the
public institutions to adopt the least practiced e-ordering practices such as e-requisition and
e-receipting in order to reduce the transaction costs and speed up the procurement process.
The study recommends that since adoption of e-payment practices such as internet payments
and e-cards are not practiced to a great extent in the public sector.
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CHAPTER ONE
INTRODUCTION
1.1 Introduction
The study focused on “E-procurement practices and performance of local government entities
in Uganda, a case of Gulu district local government”. In Uganda, never before has there been
a growing interest in procurement performance than it is today. Its management now appears
on the agenda of researchers, academia, policy makers and practicing procurement officials
and this could be a function of many factors (Cousens, Szwejczewski, and Sweeney, 2019).
Ntayi (2019) on the other hand, claims that millions of dollars get wasted due to inefficient
and ineffective procurement structures, policies and procedures which result into poor service
delivery. Although procurement procedures need to be tailored to enhance the fulfillment of
different project objectives (Wardani et al., 2016), clients tend to choose those procurement
procedures they have a habit of using, regardless of any differences between projects.
In order to enhance change, an increased understanding of how different procurement
procedures affect different aspects of project performance in different types of projects is
therefore vital. This chapter will constitute, background to the study, statement of the
problem, purpose of the study, specific objectives and research questions, hypotheses of the
study, conceptual framework, significance of the study, justification of the study, scope of the
study, and finally operational definition of key terms.
1.2 Background of the study
This section presents the back ground of the study under four dimensions that’s historical,
theoretical, conceptual and contextual perspectives.
1.2.1 Historical Background
The history of procurement performance can be traced from the earliest procurement order
dates between 2400 and 2800 B.C for 50 jars of fragrant smooth oil for 600 small weights in
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grain written on a red clay tablet found in Syria (Coe, 1989). Other evidence of historical
procurement includes the development of the silk trade between China and a Greek colony in
800 B.C. Furthermore, in the United States, according to government procurement at the
municipal level predates that of state and federal governments. From the traditional
acquisition approach of basically ensuring availability of goods and services for the
organization’s value addition, public procurement has in the last two to three decades brought
on board issues and processes of purchasing especially sustainable development in the supply
chain (OECD, 2005).
In the United States of America, Ashlstrom (2010) pointed out that two most important
measures for the success of e-procurement processes are cost and time. It is faster to send a
document electronically as compared to the manual method of sending tender documents
through post office (Kaali, 2017). This contributes to improved order tracking and tracing, for
it is much easier to trace the orders and make necessary corrections in case an error is
observed in the previous order (Cusumano and Selby, 2014).
E-procurement has gained popularity especially with the advent of technology (Uddin, 2015).
Rapid development of e-procurement was reported in early 2000 (Ahlström, 2010). By the
end of the same year, it was reported that many public organizations were maintaining web
presence in at least some stage of their procurement processes with some participating in
online bidding.
In Africa, the concept of e-procurement is just gaining popularity especially in the public
sector to deal with the problems of lack of accountability and transparency in procurement
activities in the public sector, e-procurement platforms have scored highly towards
influencing efficiency in procurement services (Mutunga et al., 2015). Tanzania for instance,
in large extend the e-procurement systems has allowed e-sharing, e-advertisement, e-
submission, e-evaluation, e-contacting, e-payment, e-communication and e-checking and
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monitoring to ensure all public procurement activities are conducted online (Tanzania PPOA,
2016).
In Uganda, an estimated 34% of the government expenditure takes place at the local
government level (Agaba & Shipman, 2007). Proper planning for this huge expenditure is
therefore an essential element of good procurement in Local Government systems of the
country. The procurement objective is to provide quality goods and services through open
and fair competition in the exact quantity and proper quality as specified; and has to be
delivered at the time and place where needed. Therefore, to secure such goods and services at
competitive prices requires accurate planning and involvement of a number of stakeholders.
In Uganda, procurement planning is part and parcel of the traditional planning already
familiar in local governments:- notably, development planning and budgeting. The mandate
for planning in local governments is derived from Regulation 62 of the Local governments
(PPDA, 2006): user department to prepare an annual work plan for procurement based on the
approved budget, which shall be submitted to the procurement and disposal unit to facilitate
orderly execution of annual procurement activities. It is also stated that a procurement plan
should be integrated into the annual sector expenditure program and that a procurement and
disposal unit is required to use the combined work plan to plan, organize, forecast and
schedule the procuring and disposing entity's procurement activities for the financial year.
Therefore, the requirement for procuring entities to prepare annual procurement plan is a
mandatory one under the Public Procurement and disposal of Public Assets Act ,2003
(PPDA, 2003). However various audits by the PPDA reveal either poor planning or no
planning at all. For instance, PPDA Annual Procurement & Disposal Audit Report (2012)
carried on procuring and disposal entities (PDE’s) sighted poor planning or poor execution of
the procurement plan in 22 out of the 29 PDE’s, representing 75.9% of the PDE’s.
Government of Uganda has invested a lot in public service delivery and public procurement
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therefore is a strategic tool for efficient service delivery in the country. However, the
achievement of results through public procurement remains a challenge due to Inadequate
planning for procurement (PPDA-symposium magazine, 2012). In view of the importance of
the procurement function and the need to have coherent methods of performance of the
procurement function, it is therefore necessary to investigate the influence of E-procurement
practices that would enhance performance in Gulu District Local Government.
1.2.2 Theoretical Background
The study used the “Resource Based View theory” which was rooted in the work of Penrose
around 1959 while working on her project, titled ‘The Theory of the Growth of the Firm’
(Peteraf& Barney, 2012). The RBV theory is largely based centralized on the resources of the
firm. The Resource-Based View (RBV) emphasizes the firm’s resources as the fundamental
determinants of competitive advantage and performance. It adopts two assumptions in
analyzing sources of competitive advantage (Peteraf & Barney, 2012).
First, this theory assumes that firms within an industry (or within a strategic group) may be
heterogeneous with respect to the bundle of resources that they control. Second, it assumes
that resource heterogeneity may persist over time because the resources used to implement
firms’ strategies are not perfectly mobile across firms (i.e., some of the resources cannot be
traded in factor markets and are difficult to accumulate and imitate). Resource heterogeneity
(or uniqueness) is considered a necessary condition for a resource bundle to contribute to a
competitive advantage. The argument goes “If all firms in a market have the same stock of
resources, no strategy is available to one firm that would not also be available to all other
firms in the market” (Cool, et al., 2012).
The RBV theory supports the independent roles undertaken by the organization while
preparing for triggering the movement in the organization’s supply chain. RBV theory
identifies the internal operational processes as vital components of the organizations
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resources such as integrating electronic platforms in executing operations such as tender
invitation. It will be convenient for the organization to adopt industry benchmark standards
while seeking suppliers and this can be effectively be implemented by adopting sophisticated
tendering process that is executed electronically (Peteraf & Barney, 2003). The organization
will be able to evaluate the influence of the platform of the performance of the procurement
function for the individual organization. RBV concept ensures that the organization manages
its procurement function with high sensitivity once they understand that they can peg their
competitive advantage on the efficiency of the process (Dierickx & Cool, 2009).
1.2.3 Conceptual Background
The variables to be defined included the E-procurement practices and performance
Performance provides the basis for an organization to assess how well it is progressing
towards its predetermined objectives, identifies areas of strengths and weaknesses and
decides on future initiatives with the goals (Van Weele, 2016). Performance is the outcome
realized in customer satisfaction and cost saving on the supply chain by the use of electronic
procurement process to automate functions including; e-sourcing, e-tendering, e-ordering and
e-payments (Uddin, 2015; Muraya, 2016).
Performance shows the employee's commitment to meeting the institutional objectives.
According to (Aliya, Maiya, Farah and Hina, 2015) performance is the art of achieving the
desired results within defined limits of time, accuracy and completeness. (Sultan et al., 2012)
agree contending that performance refers to their ability to meet agreed tasks measured
against predetermined standards of accuracy, completeness, cost and speed. This study will
measure performance according to employee’s ability to meet agreed standards of innovation,
attitude towards work, timely completion of tasks and quality of output.
Procurement cost: this is a procurement strategy in which a company sources materials from
countries with lower labour and production costs in order to cut operating expenses (Silva,
2013).
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Lead time: this is the opportunity to carry less stock: a short lead time means you operate
with a smaller inventory volume to meet customer demand (Cousens, Szwejczewski, and
Sweeney, 2019).
High quality sourcing: Sourcing involves the whole process of evaluating and selecting the
suitable suppliers who help the organization in maintaining its competitiveness in the market.
Quality of goods and cost savings are necessary criteria to consider before choosing a
sourcing partner.
E-Tendering: According to McConnell, (2019) e-tendering is a process of carrying out the
entire procurement cycle on internet including submission of price bid such that efficiency,
economy, speed of the internet can be harnessed. E-tendering is a process of transmitting
requests electronically by use of internet to execute procurement operations
E-Ordering: Raghavan and Prabhu (2014) defined e-ordering as “the formal electronic
request of goods and services including all processes from the identification of a need to
purchase of products, to the payment for these purchases, including post-contract/payment
activities such as contract management, supplier management and development”.
E-Payments: Dennis (2009) defines e-payment system as a form of financial commitment
that involves the buyer and the seller facilitated via the use of electronic communications. E-
payment is a monetary transaction between the buyer and seller by use of electronic platform
to perform transactions including mobile payments, internet payments, e-cards, PC Banking
and E-cash in the supply chain (Malhotra & Galletta, 2013).
1.2.4 Contextual Background
Gulu is part of the former Acholi District which existed at Independence. In 1974, Acholi
District was divided into East Acholi and West Acholi which became Kitgum and Gulu
district respectively in 1980. Kilak and Nwoya were counties in Gulu District. Gulu District
Procurement Performance Measurement System Report (PPMS, 2009) reveals that the
procurement data with the lowest level of compliance is those that relate to contract
management, and, in particular, the Contract implementation Plan where compliance levels
6
were at 26%, while compliance levels for Data relating to contract completion was assessed
at 54%. Furthermore, the Auditor General's findings in the Audit Report for year ending June
201I, established that the key issues affecting procurement of works at Local Government
level include: the lack of adequate supervision by engineers, and poor quality output and
payment for no work undertaken or less work done than specified under the contracts.
In Gulu district, procurement performance was rated unsatisfactory due to failure to achieve
best value for money through the contract management process. Procurement objectives were
not achieved within defined time, budget and quality and hence resulted into a potential to
make the whole procurement void and resulted in a potential loss of tax payers’ funds in Gulu
Local Government (Auditor General's Report on Gulu District Local Government, 2015;
PSST Presentation on Service Delivery 2015). The major challenges in the public
procurement process have a lot to do with the management of the contracts. This is because
traditionally procurement has focused on value for money considerations only whilst public
procurement contract management which helps in achieving value for money has received
very little attention. The high rate of non-compliance and contract failures in Gulu district
local government could be attributed to this little or no attention given to contract
management (Sarah Eyaa and Pross Nagitta Oluka, 2019). It is against this background that
the researcher undertook a study on the impact of e-procurement practices on the
performance of local government entities in Uganda, a case of Gulu District Local
Government.
1.3 Statement of the problem
The enactment of the Public Procurement and Disposal Act PPDA (2021) amended and the
Regulations of 2014 are some of the reforms that are meant to promote efficiency,
effectiveness, accountability and value for money in public procurement (Muraya, 2016). As
7
a result, a number of approaches such as tender committees, prequalification’s, open
tendering, auctions and price indices have been tried with little success.
Despite the enactment of the PPDA Act, (2003) and PPDA Act 2021 as amended,
operationalization of various regulations to improve performance of the procurement function
in Uganda, the procurement operations within Gulu District Local Government have been
marred in lack of proper direction, poor coordination, slow with a lot of bureaucracy, lack of
competition and transparency, wastages, delay in delivery, poor quality, inadequate
implementation of electronic procurement, high levels of corruption and instances of glaring
incompetence in managing the procurement function (Hilda (2018). Relatedly, incomplete
renovation and expansion of OPD in Lugore HCII Palaro Sub County where a contract sum
of UGX.47, 558,600 was spent but audit inspection carried out on 24 th October 2018 revealed
that the project was incomplete and the contractor had abandoned the site.
Incomplete/Abandoned Low Cost Sealing of Laroo-Pageya Road 2 Km. The district awarded
a contract to Pehan Construction Ltd for Low Cost Sealing of laroo-pageya road 1 km section
at a contract sum of ugx.498, 646,112 funded by RTI respectively, missing procurement Data
worth UGX 356,707,842 lacked appropriate supporting documentation (Report of the Auditor
General, 2018), Low lead time. If not worked upon, they affect service delivery in the Local
Government entities and it is against this backdrop that the study established the influence of
e-procurement practice on performance in Gulu District Local Government.
1.4 Purpose of the study
The purpose of the study was to establish the influence of e-procurement practice on
performance in Gulu District Local Government
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1.4.1 The specific objectives
i. To examine the influence of e-tendering on performance at Gulu District Local
Government
ii. To determine the influence of e-ordering on performance at Gulu District Local
Government
iii. To examine the influence of e-payments on performance at Gulu District Local
Government
1.5 Research Questions
i. What is the influence of e-tendering on performance at Gulu District Local
Government?
ii. What is the effect of e-ordering on performance at Gulu District Local Government?
iii. What is the influence of e-payments on performance at Gulu District Local
Government?
1.6 Hypothesis of the study
H1: E-tendering significantly affects performance in Gulu District Local Government
H1: E-ordering significantly affects performance in Gulu District Local Government
H1: E-payments significantly affect performance in Gulu District Local Government
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1.7 Conceptual framework
E-procurement Practices (IV)
E-Tendering
 E- Notices
 E-Selection
 E-Awarding Performance (DV)
E-Ordering
 Procurement cost
 E-Requisition
 Lead time
 E-Cataloguing
 High quality sourcing
 E-Authorization
E-Payment
 Mobile Payments
 Internet Payments
 E-Cards
Source: Basheka (2008) and improved by the researcher 2022
Figure 1.1: Conceptual framework showing relationship between E-procurement and
performance of local government entities.
The framework above shows the relationship between the independent variable (E-
procurement) and dependent variable (performance of Local Government entities). The
independent variable is measured in terms of E-tendering with sub themes like e-notices, e-
selection e-awarding to request for information and response for prices to suppliers and
receiving back their feedback. E-ordering with sub themes like E-requisition, E-cataloguing
and E-authorization and E-Payments with sub themes like mobile payments, E-cards, E-cash
in the supply chain. The dependent variable is measured in terms of lower procurement cost,
low lead time and high quality sourcing. A change in the independent variables will bring a
change in the dependent variables.
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1.8 Justification of the study
Public sector procurement is enormous and complex, representing 20-30 percent of GDP
(Thai and Grime, 2000), and have customarily sought after numerous social and political
objectives. It purchases and uses strange contracting frameworks intended to secure the
public interest to guarantee responsibility and straightforwardness of administrations (Rashid,
2004). Changes to manual e-procurement assist with expanding straightforwardness and
dependability in the public monetary administration and tendering measure. The literatures
reviewed have indicated that there are no studies that have been carried out on the effects of
e-procurement on the performance of organizations in local governments in Uganda. Studies
on e-procurement are also few since the concept has not been adopted in most organizations.
Gulu District Procurement Performance Measurement System Report (PPMS, 2009) reveals
that the procurement data with the lowest level of compliance is those that relate to contract
management, and, in particular, the Contract implementation Plan where compliance levels
were at 26%, while compliance levels for Data relating to contract completion was assessed
at 54%. Furthermore, the Auditor General's findings in the Audit Report for year ending June
201I, established that the key issues affecting procurement of works at Local Government
level include: the lack of adequate supervision by engineers, and poor quality output and
payment for no work undertaken or less work done than specified under the contracts. There
is need therefore to conduct a study to establish the effects of e-procurement on the
performance of local governments in Uganda.
1.9 Significance of the study
The study may add new information to existing review that will be continued before. The
results of the study are probably going to help future examination in the fields of E-
procurement and procurement work performance.
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Strategy producers may discover this study ingenious to direct businesses and workers in
administration of E-procurement. The aftereffects of this examination are utilized as starting
reference data in the plan of need and improvement measures. Furthermore, a similar
outcome may be utilized as a benchmark to think about the achievement or effect of future
change endeavors on Gulu District. The review may assist with diminishing the
disappointment rate in the performance of e-procurement in Gulu District Local Government
Researchers may likewise profit from the discoveries of this study since it may give extra
information to the generally existing writing on e-procurement. The discoveries and holes of
this study might go about as ground for additional examination.
The discoveries of the study may likewise fill in as a benchmark to different associations who
mean to take on e-procurement. It will empower them to all the more likely comprehend the
job and impacts of e-procurement in the procurement performance of an association.
1.10 Scope of the study
This sub section of the study provides three scopes of the study including
1.10.1 Content scope
This review was restricted to hypothetical and experimental discussions on e-procurement
and performance of public bodies. The attention was on institutional hypothesis and
experimentally concentrated on e-procurement as elements of e-sourcing, e-tendering, e-
ordering and e-installment.
1.10.2 Geographical scope
The review was done in Gulu district local government which is a City in the Northern
Region of Uganda. The regional headquarters are located in the city of Gulu, which is also
the administrative capital of Northern Uganda. Gulu District is bordered by Lamwo
District to the north, Pader District and Omoro District to the east, Oyam District to the
south, Nwoya District to the southwest, and Amuru District to the west. The district
12
headquarters in the city of Gulu are approximately 333 kilometres (207 mi), by road, north of
Uganda's capital city, Kampala. The coordinates of the district are, near the city of Gulu are:
02°49'50.0"N, 32°19'13.0"E (Latitude: 2.830556; Longitude: 32.320278). Gulu district local
government was chosen because Procurement Performance Measurement System Report
(PPMS, 2009) reveals that the procurement data with the lowest level of compliance is those
that relate to contract management, and, in particular, the Contract implementation Plan
where compliance levels were at 26%, while compliance levels for Data relating to contract
completion was assessed at 54%.
1.10.3 Time scope
The examination study was covered between a long time from 2017 to 2021; a period when
Jinja City Council took on e-procurement in larger part of its specializations. The review was
be attempted from period May 2021 to July 2022.
1.11 Operational definitions
E-procurement: Is the business to business (B2B); to consumer (B2C) or to Government
(B2G) purchase and sale of supplies, work and services through the Internet.
E-payment: Dennis (2009) defines e-payment system as a form of financial commitment that
involves the buyer and the seller facilitated via the use of electronic communications. E-
payment is a monetary transaction between the buyer and seller by use of electronic platform
to perform transactions including mobile payments, internet payments, e-cards, PC Banking
and E-cash in the supply chain (Malhotra & Galletta, 2013).
Electronic contracting, also known as an electronic agreement or provider trade, it is the
buy and offer of provisions, hardware, works and administrations through a web interface, on
the web or other organized framework (Namusonge & Okwaro, 2017)
13
Electronic sourcing by and large alludes to web-empowered applications and choice help
apparatuses that work with cooperation among purchasers and dealers using on the web
exchanges, online closeouts, switch barters, and comparative instruments.
Electronic tendering or "electronic tendering" alludes to a tendering interaction wherein
contract records are distributed electronically and a reaction to the proposition is first
communicated electronically (McConnell, 2019).
Procurement performance: It alludes to the money related and non-financial estimation of
an organization's procurement strategy and working outcomes. These outcomes are reflected
in productivity, viability, and nature of administration, dematerialization, and the additional
worth of the organization's procurement cycle (Akibate, 2015).
14
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter presents a review of existing literature on the impact of e-procurement practices
on performance in local government focusing on Gulu District local Government as a case
study. The first section presents the theoretical review, and this is followed by the actual
review of the study objectives reflecting the gaps and summary of literature reviewed.
2.2 Theoretical review
The study used the Resource Based View theory which was rooted in the work of Penrose
around 1959 while working on her project, titled ‘The Theory of the Growth of the Firm’
(Peteraf& Barney, 2012). It adopts two assumptions in analyzing sources of competitive
advantage (Peteraf & Barney, 2012).
The Resource-based View (RBV) is a strategic management theory that is widely used in
project management; it examines how resources can drive competitive advantage.
Competitive advantage is the ability to create more value than rivals, and therefore generate
higher returns on investment. Sustainable competitive advantage requires enduring benefits
through capabilities that are not easily imitated (Killen et al., 2012). The RBV is built on the
concept that resources and capabilities are not heterogeneous across other organizations, and
through the utilization of this concept the success rate variations between organizations can
be explained. Kraaijenbrink et al (2010) quoted the argument of Barney (1991a, 1994, 2002)
that “if a firm is to achieve a state of sustained competitive advantage, it must acquire and
control valuable, rare, inimitable, and non-substitutable (VRIN) resources and capabilities.”
First, this model assumes that firms within an industry (or within a strategic group) may be
heterogeneous with respect to the bundle of resources that they control. Second, it assumes
that resource heterogeneity may persist over time because the resources used to implement
15
firms’ strategies are not perfectly mobile across firms (i.e., some of the resources cannot be
traded in factor markets and are difficult to accumulate and imitate). Resource heterogeneity
(or uniqueness) is considered a necessary condition for a resource bundle to contribute to a
competitive advantage. The argument goes “If all firms in a market have the same stock of
resources, no strategy is available to one firm that would not also be available to all other
firms in the market” (Cool, et al., 2012).
Heterogeneous; the other assumption is that skills, capabilities and other resources that
organizations possess differ from one company to another. If organizations would have the
same amount and mix of resources, they could not employ different strategies to outcompete
each other. What one company would do, the other could simply follow and no competitive
advantage could be achieved. This is the scenario of perfect competition, yet real world
markets are far from perfectly competitive and some companies, which are exposed to the
same external and competitive forces (same external conditions), are able to implement
different strategies and outperform each other. Therefore, RBV assumes that companies
achieve competitive advantage by using their different bundles of resources.
RBV theory identifies the internal operational processes as vital components of the
organizations resources such as integrating electronic platforms in executing operations such
as tender invitation. It will be convenient for the organization to adopt industry benchmark
standards while seeking suppliers which may be effectively implemented by adopting
sophisticated tendering process that is executed electronically (Peteraf & Barney, 2013).
The organization was able to evaluate the influence of the platform of the performance of the
procurement function for the individual organization. RBV concept ensures that the
organization manages its procurement function with high sensitivity once they understand
that they can peg their competitive advantage on the efficiency of the process (Dierickx &
Cool, 2009).
16
The theory was used to gain a sustainable competitive advantage. An organization can sustain
its competitive advantage only through an extensive resource analysis, resource allocation,
and cross-functional resource usage. Likewise, only when a company unleashes its
workforce’s true potential can it innovate better and stand out in the industry. An RBV
strategy helps organizations achieve: Visibility for efficient resource allocation, Maintain
competitive advantage and Cross-functional resource usage
Visibility for efficient resource allocation: The comprehensive view of all the resource pools
facilitates managers to gain insight into resource skills and competencies. This, in turn,
allows managers to allocate resources as per the scope and market demand of its products and
services. Real-time information helps them make data-driven decisions, leverage talent to the
maximum potential, and maximize profitability.
The theory helps the organization in maintaining the competitive advantage: The rise in market
volatility propels extensive adhoc customer demands. Responsiveness to changing
marketplace conditions often becomes the deciding factor for a company’s growth and
success. In these situations, managers can utilize both their tangible and intangible assets to
execute critical strategic responses.
2.3 Review of the related literature
2.3.1 E-tendering and performance
E-tendering is the dissemination and receipt of tender information indication of interest in
tendering and receipt of tender digitally relying on technological interconnected network
(McConnell, 2019). Tendering is one of vital procurement components where technology use
can enhance its effectiveness. E-tendering enables the procurement professionals to take
control over the elements of tendering ensuring improved and secure access to tender
information (Henriksen et al., 2014). These tendering components which are executed within
the digital platform include; e-notices, e-selection, e-mailing and e-awarding. Electronic
17
procurement has been labeled as a tool that can improve competence and performance while
enabling simplicity and automation (Henriksen & Mahnke, 2015).
Through e-tendering, the process of supplier or contractor selection is considered a suitable
mechanism to select a proper contractor fairly, efficiently and productively (Munezero,
2015). Kamaru and Will, (2018) hypothesized that e-tendering helps firms reduce the cost of
establishing specifications, choosing suppliers, negotiating conditions and contracting. Whilst
it was expected that e-auction would have a direct effect on the cost of both operational and
strategic inputs by allowing firms to obtain lower prices by using the market mechanism,
Kamaru and Will, (2018) expect that e-tendering would have an impact on purchasing cost
only indirectly, as firms are able to consider more alternatives over time.
Munyao and Moronge (2018) sought to establish the influence of e-procurement practices on
the performance of procurement at Gulu District Local Government. A census research
design was adopted in this study. The target population in this study was 31 public
universities chartered by the Commission on University Education (CUE) as at July 2017.
Statistical package for social science (version 20) was used to facilitate data analysis. It was
established that e-tendering positively and significantly affect procurement performance.
Studies reveal that e-tendering improves procurement performance in a number of aspects.
There is no study done on e-tendering in Gulu district local government and thus an existing
gap in knowledge that this study covered.
E-Awarding is an e-procurement activity which entails secure tender opening, tender
evaluation and tender award to the best offer (McConnell, 2019).This is activities are
facilitated through e-awarding module. This module has a functionality that enables
electronic evaluation of the received offers based on the awarding criteria and the evaluation
formula defined by the procuring entity. The module also provides an environment that
allows the implementation of electronic auctions, for all the dossiers where the awarding
18
procedure of the market opportunity authorize it (Hsao & Teo, 2015). E-awarding module is
integrated with the e-notification module which allows the generation and publication of
contract award notices; thus enhancing efficiency and effectiveness in the tender evaluation
and award process. Further, e-awards enhances standardized electronic format which makes
the comparison of bids more straightforward. Similarly, studies show that e-awarding process
is transparent and open thus allowing public oversight; it facilitates improved coordination of
tasks, consultation among bid evaluators who are geographically far during bid evaluation;
and finally it enhances audit trails in the bid evaluation and award process (McCornel et al.,
2019).
The effects of e-tendering on organizational performance lot of studies have been conducted
with a study done by Gathimo and Njoroge (2018), on the advantages of organization which
uses E-procurement. The Eadie et al (2017) study has been able to discuss on the reduction in
staff as an important way of producing competitive advantage through reduced costs with e-
procurement practices organizational competitive advantage benefits in the market.
Additionally, Gathimo and Njoroge (2018) has also captured on communication efficiency in
the procurement process; with Hawking et al, (2014) also discussing on market intelligence.
In as much as the study has been able to capture on various issues concerning e-tendering; a
lot has not been covered in terms of studies relating to the transparency of the tendering
process. The study has also captured on the general aspect of e-tendering without mentioning
the current issue in relation to high-income countries in comparison to low-income countries.
There is no study done on e-tendering in Gulu district local government and thus an existing
gap in knowledge that this study covered.
2.3.2 E-ordering and performance
Lewis (2014) conducted a study on performance of the electronic procurement platforms by
evaluating the effectiveness of e-ordering module. The study revealed that e-ordering can be
19
used as a tool to lower procurement cost, low lead time and high quality sourcing hence
performance. He further found out that the use of e-ordering starts with selection of an e-tool
to complement organizational strengths, followed by change management and training of the
staff and other stakeholders where possible. There is no study done on e-ordering in Gulu
district local government and thus an existing gap in knowledge that this study covered.
Chepkwony and Lagat (2016) sought to determine the effect of E-ordering and E-informing
on supply chain performance. The study was informed Innovation Diffusion Theory.
Explanatory research design was employed in this study. Targeted population was 244
procurement officers from 112 Kenyan Retail outlets. Multiple regression mode findings
showed that e-ordering and e-informing had a positive and significant effect on supply chain
performance. The study concludes that e-ordering and e-informing which are elements of e-
procurement dimensions increases supply chain performance. There is no study done on e-
ordering in Gulu district local government and thus an existing gap in knowledge that this
study covered.
E-ordering is the use of Internet to facilitate operational purchasing process, including
requisitioning, order processing, order approval, the transmission and acceptance of this by
suppliers (Oteki, 2019). Early e-procurement technology solutions focused on this aspect of
e-procurement as this was perceived as the area where maximum efficiencies could be
achieved. The main advantage of using e-ordering is that if the supplier is able to receive the
purchase order information electronically, they may be able to upload it directly into their
order management system. This has the benefit of both avoiding re–keying data by sales
operations staff, as well as minimizing any chance for errors in the order. Thus, by keeping
the ordering information electronic from start to finish; the process is quicker, reduces errors
and provides a clear governance and audit trail (Afande, 2015).
20
Automated approvals are typically enabled through a transactional e–procurement or
FMIS/ERP system, and are designed to translate the organization’s delegation and authority
rules into an electronic hierarchy for use in approving orders (Akibate, 2015). As such, an
end user enters a requisition which is then automatically forwarded to their supervisor or
delegate for approval. Once the requisition has been approved the requisition is sent to the
purchasing department to turn it into a purchase order. The purchasing officer can approve or
cancel requisitions at this stage. Some systems allow for automatic purchase order creation
once a requisition is approved by the supervisor. Once the order is created it is typically
emailed or auto-faxed to the supplier (McConnell, 2019). There is no study done on e-
ordering in Gulu district local government and thus an existing gap in knowledge that this
study covered.
Afande (2015) revealed that there was a positive relationship between e-ordering and
procurement performance. He explained that automated approval systems enhances
efficiency in procurement process due to its potential to conduct the following: reduce the
amount of time from requisition submission to purchase order creation; reduce the cost of
sending purchase orders to suppliers due to lower processing overheads; increases
compliance with speed limits as long as the hierarchy is accurately maintained and checked
during approval; controls leakage as end users have to go through additional steps to add
suppliers not currently in the vendor master list. Thus e-ordering enhances procurement
performance in corporations (Kauffman, & Kriebel, 2019). The findings will help to cover
study gaps in Gulu district local government.
Based on the literature review on past studies done on Effect of E-invoicing on organizational
performance, a study conducted by (Kamaru & Were, 2018) titled the introduced transaction
costs discussed on individual corporations performance in asset transformation on cost
economics, the cost of the infrastructure is reduced per transaction when the volume of
21
transactions increases. The studies were done by Wanjera (2014) also discussed on the
creation of a financially viable e-invoicing solution, corporate needs to create this critical
mass by a value network of alliance partners and technology solution providers to add the
necessary desirability for electronic invoicing through the Financial Supply Chain. Based on
the study done by Buenger et al. (2015), the value drivers, indicating that organizations face
different value propositions, which may change over time due to internal and external effect
and experiences. In as far as the study will be conducted to identify the benefits of e-
invoicing; there is yet an existing gap in the achievement of knowledge on the benefits of e-
invoicing in Gulu district local government.
2.3.3 E-payments and performance
Electronic payments has been a revered topic of discussion among numerous scholars in field
of management and ICT for the past two decades, which has seen numerous perspectives of
e-payments pitched on different contexts (Kabir et al., 2015). Subsequently, with the
introduction of e-payment system, the world payment system turned out to align with the
current trend of cashless transactions among individuals, businesses and governments. As a
result of this, the world payments system is gradually changing from coins and paper based
money to electronic forms that provide more convenient, fast and secured process of making
payments among individual and organizations. E-Payments component of e-procurement,
from an economic stand point, enhances efficiency through transaction cost savings and
reduced direct procurement costs (Sivathanu, 2019). In as far as the study will be conducted
to identify the benefits of e-invoicing; there is yet an existing gap in the achievement of
knowledge on the benefits of e-invoicing in Gulu district local government.
Seethamraju, & Diatha, (2019) conducted a study on Critical Factors central to the realization
of optimal use of e-payment utilization success in the Public Sector. They found out that
despite the efforts put by the governments through reforms towards the use of e-procurement,
22
utilization of e-payment still remains a major challenge for many procurement functions. The
findings further revealed that successful e-procurement practices established systems and
feedback mechanism. They associated e-payment with improved procurement performance.
Findings of study done by Roma and McCue (2012) on e-procurement revealed that e-
payment facilitates the bidding process which in turn enhances transparency and accountancy
especially in public procurement. The research further revealed that e-payment is associated
with improved efficiency and enhanced procurement operations.
Xena & Rahadi, (2019), states that an electronic payment system is essential for the
identification, analysis, evaluation, treatment, monitoring, and communication among
organizations. Thus, the electronic payment system plays five main roles in an organization.
The first control principle is the system design. In addition, the electronic payment system
helps the bank to identify, analyze, evaluate, treat, and monitor the market participants,
communicate with them and distribute the required information. Nonetheless, the electronic
payment system does not identify the borrower and market agents. Finally, the electronic
payment system provides some information in the form of general knowledge to help narrow
the gap between borrowers when negotiating their contracts.
E-Invoicing involves electronically receiving invoices from suppliers, processes the same and
finally making electronic payment to suppliers via a Bank Automated Clearing System
(BACs) (McConnell, 2019; Hsao & Teo, 2015). E-invoicing has the potential to greatly
improve buyer-supplier relationships. Since both parties can monitor the processing of
invoices at the touch of a button, it makes it easier to monitor what stage in the approval
process an invoice has reached at any given time (Akibate, 2015). Besides, an electronic
invoice is cheaper to create and administer than its paper predecessor, largely because the
whole process is automated. Compared to paper invoices, e-invoices are easier to process;
they reach the customer faster and can be stored centrally at very low cost (Hsao & Teo,
23
2015). Hidayanto et al (2015) revealed that there is a positive relationship between e-
invoicing and procurement performance. They explained that e-invoicing facilitates faster
retrieval of money from customers by reducing the time an invoice or payment is in the post;
enhances reduced printing and postage costs; enables quicker and cheaper processing as the
information in electronic invoices can be fed directly into a company's payment and
accounting systems and lower storage costs. These leads to efficiency and effectiveness in the
procurement process leading to enhanced procurement performance.
An electronic payment system enables business to deliver, receive and process electronic
invoice submissions for accounts payable and accounts receivable departments. Although
most accounts payable departments have the capabilities to process electronic payments,
studies reveal that two-thirds of invoices still arrive from vendors on paper. However, firms
that go paperless by implementing an electronic payment system realize enormous process
efficiencies and cost savings benefits (Akibate, 2015). These include: firstly, processing cost
reduction: a feature-rich electronic payment system lowers associate process time by
automatically initiating and processing payments. Secondly, minimize overdue payments: a
best-in-class electronic payment system accelerates credit and collections by giving
customers, collections groups and internal customer service department’s greater visibility
into payment status. Thirdly, simplify dispute management: with an electronic payment
system, companies enjoy improved data accuracy and automated disbursement, receipt and
payment processing to streamline vendor dispute management (Akibate, 2015).
For any business to be a success, it must effectively manage its cost. Economically, an online
payment system makes sense with regards to designing, building, running, maintaining as
well as upgrading it, besides its acceptance and widespread use by the consumers (Mullan,
Bradley, & Loane, 2017). All these are reflected in the cost of transaction, where costs
incurred by seller and buyer in a transaction are kept at minimal. This includes both direct
24
and indirect costs; atomic exchange-EPS must involve consumers paying money or
something equivalent in value of a transaction; user reach- which refers to the range of users
to whom an EPS is accessible, whether countries or ages; value mobility- EPS token
circulation is limited to the community authorized by the issuing company, the token may be
valued by large number of parties at different places and passed along as gift or exchanged
for currency in equal value; and financial risk - where concern is on level of security for
online transactions, potential damages or loses that may be incurred. Thus the sharing of risks
must be spelt out clearly in an EPS (Torres, 2018)
2.4 Summary of Literature
E-procurement constitutes a very important information technology managerial tool that has
the potential of improving and integrating various functions across the organization. This
internal integration can enhance the current performance of an organization as well as
improve the future performance of the organization. E-procurement can also help drive future
confidence in the face of both internal and external risk. E-Procurement can reduce quality
costs by making sure that selected suppliers deliver a product of service that does not exceed
extensive quality control. E-Procurement can also reduce quality costs by making sure that
the components bought do not load to complaints on the user department or final product to
the customer.
The literatures reviewed have indicated that there are no studies that have been carried out on
the effects of e-procurement on the performance of organizations in local governments in
Uganda. Studies on e-procurement are also few since the concept has not been adopted in
most organizations. There is need therefore to conduct a study to establish the effects of e-
procurement on the performance of local governments in Uganda.
Barasa, Namusonge and Okwaro (2017) investigated the effects of E-Procurement on
organizational performance of Public organizations focusing on Bungoma County
25
Government. The study was guided by the specific research objectives: To establish the
effects of E-Tendering on the performance of Bungoma County Government, to establish the
effects of E-Auction on the performance of Bungoma County Government, to establish the
effects of E-Purchasing on the performance of Bungoma County Government and to establish
the effects of E-Invoicing on the performance of Bungoma County Government. The study
concluded that e-tendering, e-auctioning, e-purchasing and e-invoicing positively affect
organizational performance. The study has not linked how supply chain performance impacts
on the organizational performance the gap this study intends to fill.
26
CHAPTER THREE
METHODOLOGY
3.1 Introduction
This chapter of the study presents the methodology that was used. The concept refers to the
different procedures or ways of how the study was held. This chapter presents the research
design, study population, sample size and sampling procedures that will be used. It also
presents the methods and instruments of data collection, validity and reliability of the
instruments, procedure for data collection, data analysis, and measurement of variables and
finally the measurement of variables and ethical consideration.
3.2 Research design
The study used a cross sectional survey design. A cross-sectional survey is suitable for such a
study to collect information at a given point in time, rather than from a given period of time.
While using the cross-sectional design, the researcher applied both qualitative and
quantitative approaches to collect detailed facts Sileyew (2020). By using the quantitative
approach, the researcher described numerical data, statistics and statistical inferences which
focused on relationships between variables, which assumed a sample to be representative of
the population and will use statistics to generalise findings (Amin, 2005) while qualitative
approach helps in collating narrative and descriptive facts, to make a deeper exploration on
how the e-procurement practices affect performance of Gulu district Local Government.
3.3 Study Population
The study population was 120, this included the District appointed officials i.e. CAO (1) head
of departments (12), District management (35) and elected leader(30), District staff (32) and
service providers (10) in contract work. The reason for this is that, such groups influences
policy decision making and implementation of programs, some of them occupy strategic
positions which influence local government functions e.g. CAO, CC, HOD, Registrars, head
27
of the registry, District councilors etc. The researcher believes that the information given
would represent the total population of 120 (Krejcie and Morgan, 1970).
3.4 Sample Size and selection
The sample size was determined using the Krejcie and Morgan’s table (1970), as indicated
below.
Table 3.2: Study Population and Sample Composition

Category Study Population Sample Size Sampling
Technique
CAO 1 1 Purposive
Sampling
Heads of Departments 12 11 Purposive
Sampling
District management (sub 35 32 Sampling random
county chiefs, sub sampling
accountants, evaluation
committee and contract
committees)
Elected leaders 30 28 Simple random
Sampling
District staff 32 28 Simple random
Sampling
Service providers 10 10 Purposive
Sampling
Total 120 110
Source: Gulu district local government district development plan 2015/16 – 2019/20
3.5 Sampling methods and Procedure
This study used two sampling techniques namely purposive and simple random sampling to
select a handful of respondents.
3.5.1 Simple random
The simple random sampling technique, a technique used to where each and every respondent
has an equal chance of being included in the sample was used to select the members of the
District executives, (sub county chiefs, sub accountants, evaluation committee and contract
committees), elected leaders and District staff. The choice of this technique was that it
28
ensures least bias and its results can be used to ensure the generalizability of research
findings (Denscombe, 2017).
3.5.2 Purposive technique
Purposive technique was utilized to find individuals with key valuable realities; purposive
testing was done to pick respondents along with the CAO, Heads of departments and the
Service suppliers. One of the advantages of purposive sampling was its convenience and cost
effectiveness(Buchanan, 2017). The researcher used purposive sampling because it saves
time as one only focuses on respondents that are believed to have the information required
about the study variables.
3.6 Data collection methods
The data collection methods included questionnaire survey and interview approach.
3.6.1. Questionnaire survey
The study used the questionnaire technique to guide in the series of Data. The use of a
questionnaire on this study was crucial in particular due to the fact such Data would best be
acquired using a closed ended questionnaire which permitted smooth correlation and
regression of the respondent’s attitudinal disposition on the unbiased and based variables.
Secondly, the usage of a questionnaire permitted busy respondents fill it at their convenient
time. It additionally permitted respondents express their perspectives and reviews without
worry of being victimized as observed with the aid of using Amin (2005).
3.6.2 Interview
The interview approach displayed the head to head interaction among the researcher and the
interviewee. This approach was performed in a manner that, appointments for interviews
would be made and confirmed. Thereafter, schedules would be drawn and the interaction
would take place. More, the approach permits the researcher to gain precious Data at the
impact of Data management on procurement overall performance in Gulu district. The desire
29
for this approach was that it gives the researcher with a possibility to evolve questions, clarify
the questions with the aid of using the use of the correct language, clean doubts and set up
rapport and explore for greater Data, (Sekaran & Bougie, 2016).
3.6.3 Document review method
The study also used some documents from Gulu District Local Government including Annual
reports, minutes of the departmental meetings. These documents were thoroughly reviewed
by the researcher for secondary data (Creswell, 2013). These also provided supplementary
data to that earlier obtained from key informants and questionnaires.
3.7 Data collection instruments
The instruments used in this study included the self-administered questionnaire, interview
guide and document review checklist as detailed below
3.7.1 Self-Administered Questionnaire (SAQ)
The SAQ was designed, printed out and administered to key respondents. The SAQs were
self-administered with closed ended questions on e-procurement and performance of Gulu
District which would easily be interpreted by the respondents. All questions included a list of
non-compulsory answers from which the respondent was asked to choose the maximum
suitable solutions. The questionnaire included closed ended questions that were developed to
assist respondents make short decisions; in addition, closed ended questions would assist the
researcher code the information for next evaluation and would narrow down the error gap
while reading Data as observed by Saunders, et al., (2015). The instrument was administered
to respondents including members of the District management, (sub county chiefs, sub
accountants, evaluation committee and contract committees), elected leaders and District
staff. Questionnaire was used because it permits busy respondents fill it at their convenient
time. It additionally permitted respondents express their perspectives and reviews without
worry of being victimized as observed with the aid of using Amin (2005).
30
3.7.2 Interview Guide
An Interview guide was used to secure the depth of information from the interviewees by the
researcher.Because of the presence of COVID-19, structured telephone interviews with open
ended questions was conducted with the CAO, Heads of departments and the service
providers. The open ended questions enabled further probing between the interviewer and
interviewee in order to get more in depth information about the study variables.
3.7.3. Documentary checklist.
The study would also use some documents from Gulu District Local Government including
Annual reports, minutes of the departmental meetings. These documents would be thoroughly
reviewed by the researcher for secondary data (Creswell, 2013). These also provided
supplementary data to that earlier obtained from key informants and questionnaires.
3.8 Quality control of the instruments
This sub section of the study presents detail of validity and reliability of the instruments.
3.8.1 Validity of the instrument
Validity is the most important criterion and indicates the degree to which an instrument
measures what it is supposed to measure (Kothari, 2014). Validity is important because
inferences cannot be made from data that has been collected with instruments not serving the
purpose for which the instruments are intended (Bannigan, & Watson, 2018). Content
Validity Index (CVI) was determined by expert judgment. Each of the items in the data
collection instruments were subjected to an expert judgment by three experts and the Content
Validity Index was computed using the formula below;
CVI = No. of items rated relevant
Total no. of items
31
Table 3.3: Results of content validity for research tools
Dimensions No of Items Relevant CVI

E-tendering 09 07 0.777
E-ordering 09 08 0.888
E-payments 09 07 0.777
Performance 07 6 0.857
Source: Primary Data (2022)
Table 3.2 presents averages of 0.870 and (0.777, 0.888, 0.777 & 0.857 respectively) on all
four variables had a CVIs that were above 0.7, imply that the tool was validity since it was
appropriately answering / measuring the objectives and conceptualization of the study.
According to Mugenda & Mugenda (2003), the tool can be considered valid where the CVI
value is 0.7 and above as is the case for all the four variables provided above.
3.8.2 Reliability of data acquisition equipment
Reliability, a measure of the internal consistency and stability of the instrument was
determined by both pretesting and Cronbach’s α coefficient. About 10 questionnaires were
pretested to ensure consistency of the responses. On the other hand, the researcher obtained
Cronbach Alpha coefficient values for each construct and variable from the field results to
guide data cleaning until the coefficients are over and above the 0.7 threshold upon which it
can be concluded that the results used are reliable (Nunnally and Bernstein, 1994). The
reliability of instruments was established using Cronbach Alpha Coefficient which tests
internal reliability and the average reliability test result for research was 0.84 which is
recommended as given below in 3.3.
Table 3.4: Reliability test results of research instruments.
Study variables Cronbach’s Alpha

E-tendering 0.745
E-ordering 0.986
E-payments 0.876
Performance 0.765
Average Cronbach Alpha coefficient for variables 0.843
32
3.9 Procedure of Data collection
After acquiring approval of the research proposal by the Uganda Management Institute, the
researcher received a field attachment letter from the School of Management Science,
Uganda Management Institute (Uganda Management Institute Guidelines for Proposal and
Dissertation Writing for Masters in Management Programme, 2017). On receiving the letter,
the researcher addressed it to the Gulu district authorities where permission was sought.
Upon being granted the permission, the researcher trained and used research assistants to
manage the questionnaires even as the researcher was totally accountable for all interviews.
The exercise took one month. This entire exercise was performed with strict observance to
the standard working procedures from the ministry of health due to the corona virus
pandemic.
3.10 Data Analysis
Data was analyzed both quantitatively and qualitatively.
3.10.1 Quantitative analysis
Data collected will be sorted, edited, coded, classified and then tabulated. Descriptive
statistics will be used in quantitative data analysis. The statistical package for social scientists
(SPSS 20.0) was used in the analyzing of data. The analyzed data was interpreted in terms of
frequencies; mean and standard deviation. Tables were used to present the study findings for
ease of understanding (Marsh et al, 2020). Quantitative data was analyzed at different levels,
namely Univariate and Bivariate. At Univariate level, the data was based on percentages from
the frequency tables and descriptive statistics such as the mean. At Bivariate level, the
dependent variable (DV), performance of local government was correlated using Pearson’s
Correlation Coefficient and regressed e-procurement the independent variables (IVs).
33
3.10.2 Qualitative analysis
Qualitative information analysis contained each thematic and content analysis, and, would be
primarily based totally on how the findings were related to the research questions. Content
analysis was used to edit qualitative information and reorganize it into meaningful shorter
sentences. Thematic analysis was used to prepare Data into themes and codes were identified
(Marsh et al, 2020). After information collection, information of same category was
assembled collectively and their similarity with the quantitative information created, after
which a Data might be written. Qualitative information might be interpreted by composing
explanations or descriptions from the Data. The qualitative information might be illustrated
and substantiated by citation or descriptions.
3.11 Measurement of Variables
Mugenda and Mugenda (2013) support the nominal, interval, and Likert kind score scales
during survey plan and estimation of factors. The nominal scale was utilized to gauge such
factors as sex, conjugal status, and terms of business, among others. The interval, scale was
employed to degree such factors as age, phase of training, among others. The five-point
Likert type scale (Where 1 = strongly disagree 2 = disagree 3 =Not sure 4 = agree 5 =
strongly agree), were utilized to gauge the free factor and the reliant variable. As per
Mugenda (2013) and Amin (2005), the Likert scale can quantify insights, perspectives,
qualities and practices of individuals towards a given wonder.
3.12 Ethical Considerations
Fleming and Zegwaard (2018) defines ethics as the standards of behavior that guides a
researcher's conduct regarding the rights of people who are the subject of the research work
or get affected by it.
34
Confidentiality: The participants were guaranteed that the identified information would not
be made available to anyone who was not involved in the study and it would remain
confidential for the purposes it is intended for,
Informed consent: The prospective research participants were fully be informed about the
procedures involved in the research and were kindly asked to give their consent to participate;
consent was sought from the study participants allowing voluntary participation, anonymity,
privacy, confidentiality while explaining the study objectives to participants. Allot of
emphasis was placed on avoiding misrepresentation or distortion in reporting the data
collected during the study and avoiding collection of personal or seemingly intrusive
information. To minimise bias, the study employed the services of a research assistant to
administer the questionnaire to the respondents.
Anonymity: The participants remained anonymous throughout the study and even to the
researchers themselves to guarantee privacy. The respondents were informed upfront that
indeed their names were not required (Mugenda & Mugenda). Last but not least, all sources
of literature were acknowledged throughout the study.
Anti-plagiarism: The researcher planned to test both his proposal and dissertation guided by
the UMI research policy. The researcher plans to obtain a score that is equal or lower than
15%.
Insider bias in the process and influence peddling: The researcher planned to avoid this by
identifying, training and deploying research assistants to administer the questionnaires on
behalf of the researcher. This helped the researcher to remain objective and avoid conflict of
interest with employees of Gulu District Local Government
Provision for withdrawal from the study along the way: The study was voluntary to all the
respondents in such a way that they were strings attached whoever, felt like quitting the
process was given a lee-way to do so.
35
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction
This chapter presents the findings, analysis and interpretations to the findings. The findings
are presented according to the objectives of the study. The study focused on the influence of
e-tendering procurement practice on performance at Gulu District Local Government, the
influence of e-ordering procurement practice on performance at Gulu District Local
Government and the influence of e-payments procurement practice on performance at Gulu
District Local Government
4.2 Response rate
The response rate of the study is presented in Table 4.4 below
Table 4.5: Response rate of respondents
Instrument Planned Actual Percentage
(%)
Questionnaires 88 84 95
Interviews 22 15 68
Table 4.4 shows that out of 88 questionnaires distributed to staff members, 84 questionnaires
were returned reflecting a 95% response rate .Out of the 22 planned interviews, 15 were
conducted which gave a response rate of 68%. The overall response rate was above 50%
which is in line with Coughlan (2011) who argues that a response rate >=50% is
representative of a survey population.
4.3 Findings on background characteristics
The demographic characteristics (education level, sex, among others) for the 84 respondents
were examined and findings are presented in the next subsection.
36
4.3.1 Respondents by Gender
Table 4.6: Gender of respondents
Gender Frequency Percentage (%)

Male 65 77%
Female 19 23%
Total 84 100%
Table 4.5 above indicated that the male respondents covered the majority of 65(77%)
compared to the female respondents 19 who were 23%. This indicated that the study were
obtained from a fairly gender balance which both male and females are employed in the
institution. This is an implication that the respondents that were considered for the study
provided substantial information for the study.
4.3.2 Age group of respondents
The thought to find out the age bracket of the respondent and the responses are as illustrated
in the Figure 4.2 below
Figure 4.2: Age group of respondents
60
50
40
30
Percentage
20
10
0
20-25 years 26-31 years 32-37 years 38 and above
From the Figure 2, study results showed that majority of respondents 40(48%) were aged 32-
37 followed by 20(23%) respondents who were 26-31 years while 15(18%) were 38 and
above years and 9(11%) of the respondents were between 20-25 years. The majority
respondents were 31-40 years. This indicated that all categories of respondents in reference to
37
different age groups were represented in this study. This made the findings rich whereby the
study stood a chance of getting ideas and opinions that were based on real life experiences.
4.3.3: Education level of respondents
The respondents were also asked to indicate their education levels which is illustrated in the
Figure 4.3 below.
Master’s degree Certificate

17% 8%
Diploma
14%
Degree
61%
Figure 4.3: Highest Level of Education the Respondents
Findings in the Figure 4.3 above indicates that majority of the respondents were degree
holders making a total percentage of 51(61), Master’s degree were 14(17%), diploma holders
were 12(14%), and certificate holders were 7(8%). These results implied that the respondents
had good qualifications and the right skills and knowledge to deliver. Besides, the
respondents were able to understand, read, interpret the questionnaire and gave relevant
responses. This is an indicator that most respondents possessed a higher academic level
implying that they could release information without having any bias and could interpret the
questions with ease hence providing required information for the study.
4.3.4 Duration in the organization
The study thought the views of the respondents about the period they have spent working at
Gulu District Local Government and this was important to this study in that people’s
experience at work can either influence them negatively or positively in face of new changes
in the institution.
38
Over 3 years
Over 2 years
6 months -1year
Less than 6 months
0 5 10 15 20 25 30 35 40 45
Figure 4.4: Duration in the organization
Finding from Figure 4.4 above revealed that majority 36(43%) of the respondents had worked
for Gulu District Local Government for over 3 years, with very few 5(6%) serving for less
than 6 months. As such, the respondents selected in this study had reasonable service time
with Gulu District Local Government and hence were able to provide reliable data in this
study. This implies that most Employees were assured of their job security.
4.4 E-tendering procurement practice and performance
The study assessed the various opinions of the Gulu District Local Government Employees
about E-payments procurement practice and performance. The findings are as given in the
table below.
39
Table 4.7: Response on E-tendering procurement practice and performance
Statement SD D N A SA Mean S. D
The current government 8 4 14 21 36 3.72 1.
procurement system procedures 10% 5% 17% 25% 43% 9
make converting them to e-
tendering much easier and
faster
Tender notices for Gulu 7 8 00 17 51 4.01 1.2
District Local Government are 8% 10% 00% 21% 61%
mostly published online or on
the ERP system
Analyzing bids and distributing 8 13 5 49 7 4.29 1.13
bids to the sub-contractors and 10% 16% 6% 58% 9%
suppliers is done electronically
The e-tendering portal supports 0 20 00 46 15 3.93 0.88
all formats of tender documents 0% 18% 00% 55% 18%
E-tendering deals with all the 9 33 5 27 9 2.93 1.26
misunderstandings within the 11% 40% 6% 33% 11%
fragmented supply chain
management system
E-tendering enables staff to 7 12 8 26 30 3.07 1.26
concentrate on their prime 8% 15% 10% 31% 36%
function
It helps in document storage 9 25 7 32 7 3.50 1.22
whereby it reduces physical 11% 31% 9% 40% 9%
storage constraints
E-tendering is used in financial 8 24 5 34 13 3.24 1.28
transparency and accountability 10% 29% 6% 41% 16%
On the question whether the current government procurement system procedures make
converting them to e-tendering much easier and faster, majority of the respondents 43%
disagreed with the statement, 25% strongly agreed with the statement, whereas 17% were
neutral with the statement. The mean is 2.72 and standard deviation is 1.9. This implies that
the current government procurement system procedures make converting them to e-tendering
much easier and faster. This implies that performance of the electronic procurement
platforms by evaluating the effectiveness of e-ordering module and revealed that e-ordering
40
can be used as a tool to reduce process time, generate ordering savings and to drive
incremental revenues.
The findings above are supported by the views of the key informant who indicated that:
E-tendering is a procedure in e-procurement applied in supplier selection in order to
find a competent supplier using internet based ICT infrastructures or on the basis of
electronic transaction through the internet. It is expected to reduce face to face
transaction as well as collusion (KII 01-17th/07/2022)
As to whether tender notices for Gulu District Local Government are mostly published online
or on the ERP system, majority of the respondents 61% agreed with the statement, 21%
strongly agreed with the statement, 00% were neutral and 8% of the respondents were
strongly disagreed with the statement. The mean is 4.41 and standard deviation is 1.18. With
the mean of 4.4, this implies that Tender notices for Gulu District Local Government are
mostly published online or on the ERP system. The findings are supported by the key
informant who noted that:
……… automated approval systems enhances efficiency in procurement process due
to its potential to conduct the following: reduce the amount of time from requisition
submission to purchase order creation; reduce the cost of sending purchase orders to
suppliers due to lower processing overheads; increases compliance with speed limits
as long as the hierarchy is accurately maintained and checked during approval;
controls leakage as end users have to go through additional steps to add suppliers not
currently in the vendor master list (KII 01-17th/07/2022).
On the question analyzing bids and distributing bids to the sub-contractors and suppliers is
done electronically, majority of the respondents 58% strongly agreed with the statement, 16%
of the respondents strongly disagreed with the statement and 6% were neutral. The mean is
41
4.29 and standard deviation is 1.13 implying that analyzing bids and distributing bids to the
sub-contractors and suppliers is done electronically.
On the question as to whether the e-tendering portal supports all formats of tender documents
majority of respondents 55% agreed with the statement, 18% of the respondents disagreed
with the statement, 00% of the respondents were neutral. The mean is 3.93 and standard
deviation is 0.88 implies that the e-tendering portal supports all formats of tender documents.
The findings above are supported by the views of the key informant who indicated that:
E-tendering is a procedure in e-procurement applied in supplier selection in order to
find a competent supplier using internet based ICT infrastructures or on the basis of
electronic transaction through the internet. It is expected to reduce face to face
transaction as well as collusion
As to whether E-tendering deals with all the misunderstandings within the fragmented supply
chain management system, 40% of the respondents disagreed with the statement, 6% of the
respondents were neutral whereas 33% strongly agreed with the statement. The mean is 2.93
and 1.26 is the standard deviation implies that E-tendering deals with all the
misunderstandings within the fragmented supply chain management system
On the question whether E-tendering enables staff to concentrate on their prime function,
majority of the respondents 36% agreed with the statement, 31% of the respondents strongly
agreed with the statement whereas 10% of the respondents were neutral. The mean is 3.07
and standard deviation is 1.26.
Findings revealed that on the question it helps in document storage whereby it reduces
physical storage constraints, 40% of the respondents strongly agreed with the statement, 8.8%
of the respondents were neutral. 31.3% of the respondents strongly disagreed with the
statement. The mean is 3.88 and standard deviation is 1.22.
42
On whether E-tendering is used in financial transparency and accountability, 44% of the
respondents strongly agreed, 28% of the respondents disagreed with the statement and 6% of
the respondents were neutral. The mean is 3.30 and standard deviation id 1.23.
Table 4.8: Pearson correlation results for E-tendering and performance
Pearson Correlation coefficient

E-tendering Performance
E-tendering Pearson correlation 1 .726**
Sig. (2-tailed) .001
N 84 84
Performance Pearson correlation .726** 1
Sig. (2-tailed) .001
N 84 84
** Correlation is significant at the 0.01 level (2-tailed)
The Pearson correlation results as presented in table 4.7 indicate that the coefficient
was .726**, P-value (P=0.001<0.05) and the significance level was 0.001. The result
indicates that there is a significant positive relationship between E-tendering and
performance. Therefore, the alternative hypothesis that was earlier stated in chapter one is
upheld. This implies that E-tendering in terms E-Notices, E-Selection and E awarding are all
essential measures of performance in Gulu District Local Government. It implies that a unit
increase in adoption of e-tendering leads to a 0.726 unit improvement in procurement
performance. It further implies that an increase in adoption of E-notices, E-selection, E-
mailing, E-awarding and E-evaluation leads to a positive and significant improvement in
performance at Gulu District Local Government.
4.5 E-ordering procurement practice and performance
The study assessed the various opinions of the Gulu District Local Government Employees
about E-ordering procurement practice and performance as indicated in the Table 4.8 below;
Table 4.9: E-ordering procurement practice and performance

43
Statement SD D N A SA Mea S.D
n
In Gulu District Local Government 1 4 9 35 33 3.84 0.89
procurement, all purchase 2% 5% 11% 43% 40%
requisitions are raised by the e-
procurement system
The e-procurement system is 12 13 4 39 15 3.39 1.33
utilized to streamline the purchase 15% 16% 5% 47% 18%
authorization process
E-procurement in Gulu District 3 6 11 40 17 3.81 0.99
Local Government is only required 4% 8% 14% 52% 22
for particular type of requisition e.g. %
capital goods, high value orders.
Procurement orders are always 15 28 11 18 5 2.61 1.22
submitted electronically to 20% 36% 14% 23% 6%
supplier’s systems
Purchase orders, goods received, 9 12 9 34 10 3.32 1.24
and purchase invoices are matched 12% 16% 12% 46% 14%
electronically and automatically by
the e-procurement system
From the findings in the table above, on the question In Gulu District Local Government
procurement, all purchase requisitions are raised by the e-procurement system, majority of
the respondents 43% agreed with the statement, 40% strongly agreed, 11% were neutral and
5% strongly disagreed with the statement. The mean is 3.84 and standard deviation of 0.89.
The mean being above average of 3.0, this implies that majority of respondents agreed with
the statement that in Gulu District Local Government procurement, all purchase requisitions
are raised by the e-procurement system.
As to whether the e-procurement system is utilized to streamline the purchase authorization
process, majority of respondents 47% strongly agreed with the statement, 18% agreed, 15%
of the respondents disagreed whereas 5% of the respondents were neutral. The mean was 3.39
and standard deviation of 1.33. With the mean of 3.39, this implies that the e-procurement
system is utilized to streamline the purchase authorization process
44
On the question E-procurement in Gulu District Local Government is only required for
particular type of requisition e.g. capital goods, high value orders, majority of the respondents
strongly agreed with the statement, 22% agreed, 8% of the respondents strongly disagreed
with the statement and 14% were neutral. The mean was 3.81 and the standard deviation of
0.99. This implies that E-procurement in Gulu District Local Government is only required for
particular type of requisition e.g. capital goods, high value orders.
As to whether Procurement orders are always submitted electronically to supplier’s systems,
majority of the respondents 36% disagreed with the statement, 23% strongly agreed with the
statement were as 14% were neutral. The mean was 2.61 and the standard deviation of 1.22.
As whether purchase orders, goods received, and purchase invoices are matched
electronically and automatically by the e-procurement system, 46% strongly agreed with the
statement, 13% agreed, 16% strongly disagreed whereas 12% were neutral. The mean was
3.32 and standard deviation of 1.24. The findings above are supported by the key informant
who noted that:
Besides, an electronic invoice is cheaper to create and administer than its paper
predecessor, largely because the whole process is automated. Compared to paper
invoices, e-invoices are easier to process; they reach the customer faster and can be
stored centrally at very low cost (KII 01-16th/07/2022).
He further explained that e-invoicing facilitates faster retrieval of money from
customers by reducing the time an invoice or payment is in the post; enhances
reduced printing and postage costs; enables quicker and cheaper processing as the
information in electronic invoices can be fed directly into a company's payment and
accounting systems and lower storage costs. These leads to efficiency and
effectiveness in the procurement process leading to enhanced procurement
performance (KII 01-16th/07/2022).
45
Table 4.10: Pearson correlation results for E-ordering and performance
Pearson Correlation coefficients

E-ordering Performance
E-ordering Pearson correlation 1 .875**
Sig.(2-tailed) .000
N 84 84
Performance Pearson correlation .875** 1
Sig.(2-tailed) .000
N 84 84
*Correlation is significant at 0.01 level (2-tailed)
indicates that there is a significant positive relationship between E-Ordering and performance
in Gulu district local government. Therefore, the alternative hypothesis that was earlier
stated in chapter one is upheld. This implies that E-Ordering terms of E-Requisition, E-
Cataloguing and E-Authorization are all essential measures of performance in Gulu District
Local Government. This implies that an increase in adoption of E-Requisition, E-Cataloguing
and E-Authorization leads to a 0.875 unit improvement in procurement performance.
4.6 The relationship between E-payments procurement practice and performance
The study considered the various opinions of the Gulu District Local Government Employees
about E-payments procurement practice and performance and findings are as given in the
table below.
Table 4.11: Responses about E-payments procurement practice and performance
Statement SD D N A SA Mean Std.
46
D
The e-procurement system provides 9 23 12 29 10 3.10 1.24
for the payment of Invoices and 11% 28% 15% 35% 12%
generation of remittance advices
The payment list is passed for 16 29 9 22 7 2.70 1.28
authorization using the electronic 19% 35% 11% 27% 8%
workflow
Once authorized, payments are 3 7 1 19 53 4.00 1.09
payments made by integration with 4% 8% 2% 23% 64%
Online banking system or internet
banking
In Gulu District Local Government , 3 6 6 46 22 3.94 0.97
payments to suppliers are sometimes 4% 7% 7% 55% 27%
made by Mobile Money
The payment process is controlled 3 26 14 34 7 3.20 1.07
electronically using the e- 4% 31% 17% 41% 8%
procurement system
On the question the e-procurement system provides for the payment of Invoices and
generation of remittance advices, 35% of the respondents strongly agreed with the statement,
12% of the respondents agreed, 28% disagreed with the statement whereas. The 15% of the
respondents were neutral. The mean is 3.10 and standard deviation is 1.24. The findings are
supported by the key informant who asserts that:
E-payment facilitates the bidding process which in turn enhances transparency and
accountancy especially in public procurement. The key informant further revealed
that revealed that e-payment is associated with improved efficiency and enhanced
procurement operations (KII 01-14th/07/2022).
On sub component the payment list is passed for authorization using the electronic workflow,
35% of the respondents disagreed with the statement, 19% of the respondents strongly
disagreed with the statement, 11% of the respondents were neutral whereas 27% strongly
agreed with the statement. The mean is 2.17 and the standard deviation is 1.28.
47
As to whether once authorized, payments are payments made by integration with Online
banking system or internet banking, majority of the respondents 64% agreed with the
statement, 23% strongly agreed, 8% disagreed with the statement and 1.2% of the
respondents were neutral. The mean is 4.00 and the standard deviation is 1.09.
On the question In Gulu District Local Government, payments to suppliers are sometimes
made by Mobile Money, majority of the respondents 55% strongly agreed with the statement,
27% agreed with the statement, 7% of the respondents were neutral whereas 7% of the
respondents strongly disagreed with the statement. The mean is 3.94 and the standard
deviation is 0.97. The key informant had this to support the above statement:
E-awarding process is transparent and open thus allowing public oversight; it
facilitates improved coordination of tasks, consultation among bid evaluators who are
geographically far during bid evaluation; and finally it enhances audit trails in the
bid evaluation and award process (KII 01-14th/07/2022)
Findings also revealed that on the question the payment process is controlled electronically
using the e-procurement system, 41% of the respondents strongly agreed with the statement,
31% disagreed with the statement whereas 17% of the respondents were neutral. The mean is
3.20 and standard deviation is 1.07.
48
Table 4.12: Pearson correlation coefficient for E-payments procurement practice and
performance
Correlation coefficients
E-payments Performance
E-payments Pearson correlation 1 . 769**
Sig.(2-tailed) .000
N 84 84
Performance Pearson correlation . 769** 1
Sig.(2-tailed) .000
N 84 84
*Correlation is significant at 0.01 level (2-tailed)
indicates that there is a significant positive relationship between E-Payment and performance
at Gulu District Local Government. Therefore, the alternative hypothesis that was earlier
stated in chapter one is upheld. This implies that supplier e-payment in terms of Mobile
Payments, Internet Payments and E-Cards are all essential measures of performance at Gulu
District Local Government. This implies that an increase in adoption of Mobile Payments,
Internet Payments and E-Cards leads to a 0.769 unit improvement in procurement
performance.
4.7 Multiple Regression Analysis Summaries
In order to understand the statistical significance and contribution of the Model and each
individual independent variable (E-tendering, E-ordering and E-payments) on dependent
variable (performance), a regression was computed and the tests results are provided in Table
4.12.
49
Table 4.13: Multiple Regression Analysis Summaries
Standardize
Unstandardized d
Model Variables Coefficients Coefficients
Std.
Beta Error Beta T Sig.
(Constant) 81.607 6.326 12.900 .000
E-tendering .224 .074 .526 3.041 .001
E-ordering .675
.065 .142 .456 .000
1
E-payments .719
.260 .075 3.484 .000
R .775a
.601
R Square
Adjusted
.139
R Square
F
13.657
statistic
Sig. .000b
a. Dependent Variable: Performance
b. Predictors: (Constant), E-tendering , E-ordering and E-payments
The regression results show that R was 0.775 which shows that the correlation between the
joint independent variables (Electronic Tendering, Electronic Ordering and Electronic
Payment) and dependent variable (procurement performance) is positive.
The coefficient of determination R2 explains the percentage of variation in the dependent
variable (procurement performance) that is explained by e-procurement that is Electronic
Tendering, Electronic Ordering and Electronic Payment. The coefficient of determination
was 0.601. This means that the combined effect of e-procurement that is Electronic-
Tendering, Electronic-Ordering and Electronic-Payment explains 60.1% of procurement
performance at Gulu District Local Government. This therefore means that other factors not
50
studied in this research contribute 39.9% of procurement performance at Gulu District Local
Government.
It was also established that adoption of e-tendering positively and significantly affects
procurement performance at Gulu District Local Government (Beta = 0.526, Sig = 0.000). It
implies that a unit increase in adoption of e-tendering leads to a 0. 526 unit improvement in
procurement performance. It further implies that an increase in adoption of E-notices, E-
selection, E-mailing, E-awarding and E-evaluation leads to a positive and significant
improvement in procurement performance at Gulu District Local Government.
It was also established that adoption of E-ordering positively and significantly affects
implies that a unit increase in adoption of e-ordering leads to a 0.675 unit improvement in
procurement performance. It further implies that an increase in adoption of E-Requisition, E-
Cataloguing and E-Authorization leads to a positive and significant improvement in
procurement performance at Gulu District Local Government.
It was also established that adoption of e-payments positively and significantly affects
implies that a unit increase in adoption of e-payments leads to a 0.249 unit improvement in
procurement performance. It further implies that an increase in adoption of Mobile Payments,
Internet Payments and E-Cards leads to a positive and significant improvement in
procurement performance at Gulu District Local Government.
51
4.7 Responses on performance
The study assessed the various opinions of Performance
Table 4.14: Response on performance
Statement SD D N A SA Mean S.D
Organizational standards support 1 3 1 32 47 4.30 0.67
efficient and effective public 2% 3% 2% 44% 52%
procurement
Contract Management is 1 7 1 52 23 4.06 0.85
performed effectively and with 1.2% 8% 2% 62% 27%
timeliness
The Gulu District Local 7 13 10 38 16 3.51 1.20
Government bidding process is 8% 16% 12% 45% 19%
efficient and supports competition
Order to delivery process in the 20 35 10 13 6 2.40 1.21
supply chain management is a lot 24% 42% 12% 16% 7%
faster
Slack time is included in 44 26 6 7 1 1.75 0.99
scheduled procurement time 52% 31% 7% 8% 2%
Gulu District Local Government 29 26 10 17 2 2.25 1.19
obtains better value for money in 35% 31% 12% 20% 3%
public procurement
Procurement costs are saved 6 21 7 38 8 3.26 1.17
through the e-procurement system 8% 26% 9% 48% 10%
The quality of goods and services 9 26 9 28 5 2.87 1.19
procured are always up to 12% 34% 12% 37% 7%
standard
On whether Organizational standards support efficient and effective public procurement, 2%
strongly disagreed, 3 of respondents disagreed, and majority of respondents 52% strongly
agreed whereas 44.3% agreed with the statement and 2% strongly disagreed with the
statement. The correspondent mean was 4.30 and standard deviation was 0.7. The
corresponding mean was above average implying that Organizational standards support
efficient and effective public procurement.
52
On the question whether Contract Management is performed effectively and with timeliness,
2% of respondents strongly disagreed, 8% disagreed with the statement, 2% were neutral,
majority of respondents 62% agreed with the statement and 27% strongly agreed with the
statement. The corresponding mean was 4.06 and standard deviation of 0.85. This implies
that Contract Management is performed effectively and with timeliness.
In addition, most respondents reported that Gulu District Local Government bidding process
is efficient and supports competition, 45% of the respondents agreed with the statement and
19% strongly agreed with the statement, 8% of the respondents strongly disagreed with the
statement, 16% disagreed whereas 11.9% were neutral. The mean was 3.51 and standard
deviation of 1.2 showing the number of respondents who gave varying responses. With the
mean above 3.0, this implies that The Gulu District Local Government bidding process is
efficient and supports competition
On whether order to delivery process in the supply chain management is a lot faster, 24%
strongly disagreed with the statement, majority of the respondents 42% strongly disagreed
with the statement, 12% were neutral, 16% strongly agreement with the statement and 7%
agreed with the statement. The correspondent mean was 2.40 and standard deviation was 1.21
showing the number of varying responses. With the mean being below average, this implies
that order to delivery process in the supply chain management is not a lot faster.
On the question whether Slack time is included in scheduled procurement time, majority of
the respondents 52% strongly disagreed with the statement, 31% of the respondents
disagreed, 7% were neutral, 9% strongly disagreed with the statement. The mean was 1.75
and standard deviation 0.99. This implies that slack time is included in scheduled
procurement time.
On whether Gulu District Local Government obtains better value for money in public
procurement, majority of the respondents 35% strongly agreed with the statement, 31%
53
agreed with the statement, 20% strongly disagreed with the statement and 12% were neutral.
The mean was 3.25 and standard of 1.19.
On the question the procurement costs are saved through the e-procurement system, 47% of
the respondents agreed with the statement, 10% strongly disagreed, 26% of the respondents
strongly disagreed with the statement and 8% agreed whereas 9% of the respondents were
neutral. The mean was 3.26 and the standard deviation of 1.17.
As to whether the quality of goods and services procured are always up to standard, majority
of the respondents 36% strongly agreed with the statement, 12% were neutral and 34
disagreed with the statement. The mean was 2.87 and standard deviation of 1.19. The
findings imply that, the quality of goods and services procured are always up to standard
The lead time had been decreasing since the year 2015 to date. These improved
trends in lead time (reduction in lead time) could be linked to the adoption of e-
procurement especially after the year 2015.This improved trend in quality sourcing
(reduction in the number of counterfeits) can be linked to the adoption of e-
procurement in the public sector (KII 01-14th/07/2022)
54
CHAPTER FIVE
SUMMARY, DISCUSSION, CONCLUSIONS AND RECOMMENDATION
5.1 Introduction
This study investigated the impact of e-procurement practice on performance in Gulu District
Local Government. The study was guided by the following research objectives; to examine
the influence of e-tendering on performance at Gulu District Local Government, to determine
the influence of e-ordering on performance at Gulu District Local Government and to
examine the influence of e-payments on performance at Gulu District Local Government.
This chapter presents a summary, discussion of findings, conclusions and recommendations
made by the study, and all these are in line with the research objectives.
5.2 Summary of findings
5.2.1 E-tendering procurement practice and performance
It was also established that adoption of e-tendering positively and significantly affects
performance at Gulu District Local Government (Beta = 0.726, Sig = 0.001). It implies that a
unit increase in adoption of e-tendering leads to a 0.726 unit improvement in procurement
performance. It further implies that an increase in adoption of E-notices, E-selection, E-
mailing, E-awarding and E-evaluation leads to a positive and significant improvement in
performance at Gulu District Local Government. The qualitative findings indicated that E-
tendering is a procedure in e-procurement applied in supplier selection in order to find a
competent supplier using internet based ICT infrastructures or on the basis of electronic
transaction through the internet. It is expected to reduce face to face transaction as well as
collusion.
55
5.2.2 E-ordering procurement practice and performance
The study findings in the Table 4.9 established that adoption of e-ordering positively and
coefficient = 0. 875, Sig = 0.000). This implies that an increase in adoption of E-Requisition,
E-Cataloguing and E-Authorization leads to a 0.875 unit improvement in procurement
performance. The qualitative findings indicated that besides, an electronic invoice is cheaper
to create and administer than its paper predecessor, largely because the whole process is
automated. Compared to paper invoices, e-invoices are easier to process; they reach the
customer faster and can be stored centrally at very low cost.
He further explained that e-invoicing facilitates faster retrieval of money from customers by
reducing the time an invoice or payment is in the post; enhances reduced printing and postage
costs; enables quicker and cheaper processing as the information in electronic invoices can be
fed directly into a company's payment and accounting systems and lower storage costs. These
leads to efficiency and effectiveness in the procurement process leading to enhanced
procurement performance.
5.2.3 E-payments procurement practice and performance
The study findings in the Table 4.15 established that adoption of E-payments positively and
coefficient = 0.769, Sig = 0.000). This implies that an increase in adoption of Mobile
Payments, Internet Payments and E-Cards leads to a 0.769 unit improvement in procurement
performance. The qualitative findings indicated that E-payment facilitates the bidding process
which in turn enhances transparency and accountancy especially in public procurement. The
key informant further revealed that revealed that e-payment is associated with improved
efficiency and enhanced procurement operations.
56
5.3 Discussion of Results
The study findings are in congruence with McConnell, (2019) who indicated that E-tendering
is the dissemination and receipt of tender information indication of interest in tendering and
receipt of tender digitally relying on technological interconnected network. Tendering is one
of vital procurement components where technology use can enhance its effectiveness.
Relatedly, Henriksen et al., (2015) revealed that tendering components which are executed
within the digital platform include; e-notices, e-selection, e-mailing and e-awarding.
Electronic procurement has been labeled as a tool that can improve competence and
performance while enabling simplicity and automation.
The findings are in agreement with Kamaru and Will, (2018) who hypothesized that e-
tendering helps firms reduce the cost of establishing specifications, choosing suppliers,
negotiating conditions and contracting. Whilst it was expected that e-auction would have a
direct effect on the cost of both operational and strategic inputs by allowing firms to obtain
lower prices by using the market mechanism expect that e-tendering would have an impact on
purchasing cost only indirectly, as firms are able to consider more alternatives over time.
The findings also concur with McConnell (2019) who indicated that E-Awarding is an e-
procurement activity which entails secure tender opening, tender evaluation and tender award
to the best offer .This is activities are facilitated through e-awarding module. This module has
a functionality that enables electronic evaluation of the received offers based on the awarding
criteria and the evaluation formula defined by the procuring entity. Similarly, studies show
that e-awarding process is transparent and open thus allowing public oversight; it facilitates
improved coordination of tasks, consultation among bid evaluators who are geographically
far during bid evaluation; and finally it enhances audit trails in the bid evaluation and award
process.
57
The study findings are supported by Chepkwony and Lagat (2016) who sought to determine
the effect of E-ordering and E-informing on supply chain performance. The study was
informed Innovation Diffusion Theory. Explanatory research design was employed in this
study. The study concludes that e-ordering and e-informing which are elements of e-
procurement dimensions increases supply chain performance.
The findings are supported by Oteki, (2019) who noted that E-ordering is the use of Internet
to facilitate operational purchasing process, including requisitioning, order processing, order
approval, the transmission and acceptance of this by suppliers. Early e-procurement
technology solutions focused on this aspect of e-procurement as this was perceived as the
area where maximum efficiencies could be achieved. The main advantage of using e-ordering
is that if the supplier is able to receive the purchase order information electronically, they
may be able to upload it directly into their order management system.
Afande (2015) revealed that there was a positive relationship between e-ordering and
procurement performance. He explained that automated approval systems enhances
efficiency in procurement process due to its potential to conduct the following: reduce the
amount of time from requisition submission to purchase order creation; reduce the cost of
sending purchase orders to suppliers due to lower processing overheads; increases
compliance with speed limits as long as the hierarchy is accurately maintained and checked
during approval; controls leakage as end users have to go through additional steps to add
suppliers not currently in the vendor master list.
The study findings are supported by Seethamraj and Diatha, (2019) who conducted a study
on Critical Factors central to the realization of optimal use of e-payment utilization success in
the Public Sector. They found out that despite the efforts put by the governments through
58
reforms towards the use of e-procurement, utilization of e-payment still remains a major
challenge for many procurement functions. The findings further revealed that successful e-
procurement practices established systems and feedback mechanism. They associated e-
payment with improved procurement performance.
The findings are supported by Xena & Rahadi, (2019), who states that an electronic payment
system is essential for the identification, analysis, evaluation, treatment, monitoring, and
communication among organizations. Thus, the electronic payment system plays five main
roles in an organization. The first control principle is the system design. In addition, the
electronic payment system helps the bank to identify, analyze, evaluate, treat, and monitor the
market participants, communicate with them and distribute the required information.
Nonetheless, the electronic payment system does not identify the borrower and market
agents.
The study findings are supported by Mullan, Bradley and Loane, (2017) who asserts that for
any business to be a success, it must effectively manage its cost. Economically, an online
payment system makes sense with regards to designing, building, running, maintaining as
well as upgrading it, besides its acceptance and widespread use by the consumers. All these
are reflected in the cost of transaction, where costs incurred by seller and buyer in a
transaction are kept at minimal.
5.4 Conclusion
The descriptive results showed that e-tendering has been adapted by majority of the
respondents at Gulu District Local Government although e-notices, e-selection, and e-
awarding have been adopted were majority of the respondents agreed with the statement.
59
The inferential findings indicated that e-tendering positively and significantly affect
procurement performance at Gulu District Local Government implying that an increase in
adoption of E-notices, E-selection, and E-awarding leads to a positive and significant
improvement in procurement performance at Gulu District Local Government.
The descriptive findings showed that e-ordering has been adapted by majority of the
respondents at Gulu District Local Government although E-Requisition, E-Cataloguing and
E-Authorization have been adapted to a high extent with minimal deviating responses.
The inferential findings showed that e-ordering positively and significantly affects
adoption of E-Requisition, E-Cataloguing and E-Authorization leads to a positive and
significant improvement in procurement performance at Gulu District Local Government.
The descriptive findings showed that e-payment has been adapted to a moderate extent at
Gulu District Local Government. However, Mobile Payments, Internet Payments and E-
Cards leads were adopted with minimal deviating responses.
The inferential findings showed that e-payment positively and significantly affect
adoption of Mobile Payments, Internet Payments and E-Cards leads to a positive and
significant improvement in procurement performance at Gulu District Local Government.
5.5 Study Recommendations
It is also recommended that since adoption of e-tendering positively and significantly affects
procurement performance at Gulu District Local Government, there is a need for the public
60
institutions to adopt the least practiced e-tendering practices such as e-awarding in order to
reduce the transaction costs and speed up the procurement process.
Gulu District Local Government should use a joint policy in the establishment of similar
systems of selecting and issuing tenders as a standard procedure to ensure high levels of
performance. This will enable the Gulu District Local Government to purchase the right items
from the best suppliers filtered through stiff competition among the suppliers.
The agencies should in turn provide the suppliers with access credentials for the supplier
portal. In the end, this will increase user access to e-procurement resulting in increased
chances of selecting the best supplier for e-tendering. E-procurement process should be
specific and accurate with respect to requisition, tendering, contracting and invoice payment.
It is also recommended that since adoption of e-ordering positively and significantly affects
procurement performance at Gulu District Local Government, there is a need for the public
institutions to adopt the least practiced e-ordering practices such as e-requisition and e-
receipting in order to reduce the transaction costs and speed up the procurement process. The
goal of e-procurement in Gulu District Local Government should be to enhance the quality of
service delivery to stakeholders by providing timely, transparent and accurate financial
information to all users.
The study recommends that Gulu District Local Government should automate the practice of
e-ordering so as to promote transparency and record management since it will be easier to
track records or identify payments to be made to suppliers. E-ordering should therefore
benefit the agencies by enhancing their financial controls and improved accounting, recording
and reporting procedures.
Regular training is recommended, users training refers to the process of providing employees
with the logic and overall concept of a complex IT application or software that is being
61
introduced within the organization. Training helps employees in two distinct ways; it helps in
the transfer of knowledge from vendor consultant to employees about why IT system is
needed and how it should improve their work, this in turn address courage to employees
about the IT system and the software and thus create their confidence on using the system.
Supplier enablement may be a component that requires both the firms and its suppliers to
work together and create a system that is efficient and mutually integrated. More so each
party must solicit the support of the other either by sharing related costs, IT platform and
resources. Despite internet connectivity being currently a challenge
The study recommends that since adoption of e-payment practices such as internet payments
and e-cards are not practiced to a great extent in the public sector, there is perhaps a need to
adopt those e-payments practices to a great extent and see their effect on procurement
performance so as to enhance flexibility in payment options.
Government should endeavor to review the legal and regulatory frame of the Procurement
Act to include elements of e-procurement in the procurement process so as to start
incorporating aspects of technology aided procurement data collection and treatments. This
will reduce the level of data/technology, process and procedure circumvention and legal
compliance related problems afflicting the paper based procurement system currently
practiced
5.6 Areas recommended for further research
The study recommends future research to focus on other factors not studied in this research
contributing 39.9% of procurement performance at Gulu District Local Government since e-
procurement contributes 60.1%. These factors can range from internal and external factors.
The study also focused on local government only. Even though the sample was considered
representative enough, there is a need to widen the scope to also look at other Parastatals
62
which represent the public sector. This is because the rules and internal governance structures
of firms is different.
Furthermore, other studies can focus on a different context other than the public sector. Such
a context can be the private sector of the non-governmental organizations.
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APPENDIX 1: QUESTIONNAIRE FOR THE RESPONDENTS
Dear respondent
This questionnaire is intended to seek your view on the influence of e-procurement practice
on performance in Gulu District Local Government. The research is being undertaken as part
of the requirement for the award of a master’s degree in public procurementat of Uganda
Management Institute. You are kindly requested to spare some of your valuable time and
indicate your opinion on each question and statement. The information provided will only be
used for academic purposes and will therefore be treated as confidential.
Thank you
Please tick the appropriate option, any response you give will be respected
SECTION A: DEMOGRAPHIC CHARACTERISTICS
1. Age
20-25 years 26-31 years 32-37 years 38 and above
2. Sex
Male Female
3. Highest level of Education

Certificate Diploma Degree Post Graduate
4. Employment Status
Probation Contract Permanent
5. Duration of service:
Less than 6 months 6 months -1year Over 2 years 3 years and above
i
SECTION B: QUESTIONS ON THE STUDY VARIABLES
Respondents are requested to indicate their responses by selecting appropriate items by
ticking the number that best describes their view or opinion based on the following scales:
Strongly agree (SA)=5, Agree (A)=4, Not sure (N) =3, Disagree (D)=2, Strongly Disagree
(SD)=1
E-TENDERING 5 4 3 2 1
ET1 The current government procurement system procedures
make converting them to e-tendering much easier and
faster
ET2 Tender notices for Gulu District Local Government are
mostly published online or on the ERP system
ET3 Analyzing bids and distributing bids to the sub-contractors
and suppliers is done electronically
ET4 The e-tendering portal supports all formats of tender
documents
ET5 E-tendering deals with all the misunderstandings within
the fragmented supply chain management system
ET6 E-tendering enables staff to concentrate on their prime
function
ET7 It helps in document storage whereby it reduces physical
storage constraints
ET8 E-tendering is used in financial transparency and
accountability
E-ORDERING 5 4 3 2 1
EO1 In Gulu District Local Government procurement, all
purchase requisitions are raised by the e-procurement
system
EO2 The e-procurement system is utilized to streamline the
purchase authorization process
EO3 E-procurement in Gulu District Local Government is only
required for particular type of requisition e.g. capital
goods, high value orders.
EO4 Procurement orders are always submitted electronically to
supplier’s systems
EO5 Purchase orders, goods received, and purchase invoices
are matched electronically and automatically by the e-
procurement system
E-PAYMENT 5 4 3 2 1
EP1 The e-procurement system provides for the payment of
Invoices and generation of remittance advices
EP2 The payment list is passed for authorization using the
electronic workflow
EP3 Once authorized, payments are payments made by
ii
integration with Online banking system or internet
banking
EP4 In Gulu District Local Government , payments to suppliers
are sometimes made by Mobile Money
EP5 The payment process is controlled electronically using the
e-procurement system
PERFORMANCE 1 2 3 4 5
P1 Organizational standards support efficient and
effective public procurement
P2 Contract Management is performed effectively and
with timeliness
P3 The Gulu District Local Government bidding process
is efficient and supports competition
P4 Order to delivery process in the supply chain
management is a lot faster
P5 Slack time is included in scheduled procurement time
P6 Gulu District Local Government obtains better value
for money in public procurement
P7 Procurement costs are saved through the e-
procurement system
P8 The quality of goods and services procured are always
up to standard
THANK YOU FOR PARTICIPATION
iii
APPENDIX II: INTERVIEW GUIDE FOR KEY INFORMANTS
Dear respondent
This interview is intended to seek your view on the influence of e-procurement practice on
performance in Gulu District Local Government. The research is being undertaken as part of
the requirement for the award of a master’s degree in public procurementat of Uganda
Management Institute. You are kindly requested to spare some of your valuable time and
indicate your opinion on each question and statement. The information provided will only be
used for academic purposes and will therefore be treated as confidential.
Thank you
1. Name of Department: _____________________________
2. How long have you applied e-procurement in this institution?
3. What procurement processes do you undertake electronically? (Probe with or
example processes like bidding, purchase requisitions, e-payment etc...)
4. Based on your experiences and attitudes in your institution, what are the advantages
of using e-procurement?
5. Based on your experiences and attitudes in your institution, what are the
disadvantages of applying e-procurement in Gulu District Local Government?
6. How has e-procurement affected procurement performance in Gulu District Local
Government? In terms of speed o delivery, cost, and quality of procurement?
7. What will you suggest for the improvement of procurement?
THANK FOR YOUR TIME AND RESPONSE
iv
APPENDIX III: DOCUMENT REVIEW CHECKLIST
1) Performance reports
2) Annual reports
vi

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E-PROCUREMENT PRACTICES AND PERFORMANCE OF LOCAL

GOVERNMENT ENTITIES IN UGANDA, A CASE OF GULU

A DISSERTATION SUBMITTED TO THE SCHOOL OF MANAGEMENT SCIENCE

IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE A WARD OF

MASTER’S DEGREE IN PUBLIC PROCUREMENT OF

UGANDA MANAGEMENT INSTITUTE

this has been duly acknowledged.

Sign ……………………………………. Date………………………………..

This is to certify that this dissertation by ONEKALIT BOSCO entitled “E-procurement

Sign ……………………………………. Date………………………………..

DR. BAGUMA INNOCENT

Sign ……………………………………. Date………………………………..

MR. JOSEPH BUFWAMBU

This dissertation is dedicated to my family members most especially my dear husband, my

to elevate to its current level.

cooperation, this study would have been impossible to accomplish.

1.2 Background of the study......................................................................................................1

1.2.1 Historical Background......................................................................................................1

1.2.2 Theoretical Background....................................................................................................3

1.2.3 Conceptual Background....................................................................................................4

1.2.4 Contextual Background....................................................................................................5

1.3 Statement of the problem.....................................................................................................6

1.4 Purpose of the study.............................................................................................................6

1.4.1 The specific objectives.....................................................................................................7

1.5 Research Questions..............................................................................................................7

1.6 Hypothesis of the study.......................................................................................................7

1.7 Conceptual framework.........................................................................................................7

1.8 Justification of the study......................................................................................................8

1.9 Significance of the study.....................................................................................................8

1.10.2 Geographical scope.........................................................................................................9

1.10.3 Time scope......................................................................................................................9

1.11 Operational definitions......................................................................................................9

2.2 Theoretical review.............................................................................................................11

2.3 Review of the related literature..........................................................................................12

2.3.1 E-tendering and performance.........................................................................................12

2.3.2 E-ordering and performance...........................................................................................14

2.3.3 E-payments and performance.........................................................................................16

2.4 Summary of Literature.......................................................................................................18

3.2 Research design.................................................................................................................19

3.3 Study Population................................................................................................................19

3.4 Sample Size and selection.................................................................................................19

3.5 Sampling methods and Procedure.....................................................................................20

3.5.1 Simple random................................................................................................................20

3.5.2 Purposive technique........................................................................................................20

3.6 Data collection methods....................................................................................................20

3.6.1. Questionnaire survey.....................................................................................................21

3.7 Data collection instruments...............................................................................................21

3.7.1 Self-Administered Questionnaire (SAQ)........................................................................21

3.7.2 Interview Guide..............................................................................................................22

3.7.3. Documentary checklist..................................................................................................22

3.8 Quality control of the instruments.....................................................................................22

3.8.1 Validity of the instrument...............................................................................................22

3.8.2 Reliability of data acquisition equipment......................................................................23

3.9 Procedure of Data collection.............................................................................................23

3.10 Data Analysis...................................................................................................................24

3.10.1 Quantitative analysis.....................................................................................................24

3.10.2 Qualitative analysis.......................................................................................................24

3.11 Measurement of Variables...............................................................................................24

3.12 Ethical Considerations.....................................................................................................25

DATA PRESENTATION, ANALYSIS AND INTERPRETATION................................26

4.2 Response rate.....................................................................................................................26

4.3 Findings on background characteristics.............................................................................26

4.3.1 Respondents by Gender..................................................................................................27

4.3.2 Age group of respondents...............................................................................................27