E-procurement and organizational performance: the Moderating role of information technology capability

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The rapid growth of internet usage has compelled firms to adopt technology tools in their business practices. To this end, e-procurement has been long recognised as a key driver of procurement practices that allows firm to create value and improve organisations performance outcomes. While e-procurement has been conceptually linked to organisational performance an understanding of how e-procurement can influence organisational performance remains limited. The study aimed to investigate the effect of e-procurement on organizational performance in the context of IT capabilities. The study specifically sought to investigate the extent to which e-procurement practices affect organizational performance, as well as the effect of IT capability on organizational performance and the moderating role of IT in the relationship between e-procurement and organizational performance. The study analyzed the literature on all the constructs and identified and formed hypotheses. The RBV theory was used as the theoretical lens for the study. A crosssectional survey design was used in the study. Data was obtained from 153 businesses in the service, manufacturing, and other industries using a questionnaire. The data was analyzed using descriptive and inferential statistical methods. The study found that IT capability positively and significantly moderates the relationship between E-procurement and organizational performance and that the effect is stronger at high levels of IT capability. Additional finding indicates that IT capability positively moderates the E-procurement-organizational performance link and thus represents an organizational resource that can facilitate the implementation of e-procurement practices to enhance organizational performance. The research recommends that businesses that want to improve their performance should make it a priority to implement e-procurement across all their business operations. It is further recommended that businesses should make investments in the development of superior IT capabilities to boost their performance because the researchers discovered a positive relationship between IT capability and organizational performance.
A thesis submitted to the department of supply chain and information systems, Kwame Nkrumah university of science and technology, Kumasi, in partial fulfillment of the requirements for the degree of master of science