E-PROCUREMENT PRACTICES AND PERFORMANCE OF PUBLIC INSTITUTIONS IN RWANDA: A CASE OF KICUKIRO DISTRICT
Abstract
The purpose of the study was to evaluate the effect of e-procurement practices on the performance of public institutions in Rwanda using Kicukiro district as a case study. This study was principally completed following the reports that arose referring to lackluster showing of Rwandan public organizations, which was generally been ascribed to insufficient and unseemly running of the public money during acquirement processes. To achieve this, study the following specific objectives that guided the study were; to determine the effect of E-Bidding on performance of public institutions in Rwanda, to examine the effect of E-Tendering on performance of public institutions in Rwanda, to assess the effect of E-sourcing on performance of public institutions in Rwanda and to establish the effect of E-Invoicing on performance of public institutions in Rwanda. The study adopted descriptive survey design. Data was collected through questionnaires. The target population of the study were 93 respondents who are staffs and employees of Kicukiro District because they deal with suppliers’ issues in their day operations. Analysis of the data was done using frequency and percentage tables to analyze the demographic information provided regarding the respondents and the organization, mean and standard deviation. The study found that there exist a positive association of e-sourcing to performance of Kicukiro District. This positive association suggests that when one increases, performance of Kicukiro District increases. The study found out that bidding offers a more efficient communication infrastructure with lower transaction costs was agreed at 42.9%, Top management of Kicukiro District always assesses functionality of e-bidding was also agreed at 42.9%, Kicukiro District uses e-bidding components to watch over safety measures and risk was agreed at 39.7%. On E-Tendering practices involved suppliers posting their bids electronically, tender specification and documents sent online, receipt of tender responses electronically, tender notices conveyed to the public electronically and authenticity of bids submitted as represented by means of 3.78, 3.98, 3.92, 4.14, 4.29, 4.43 and 4.50 respectively. Majority of procurement officers agreed to statements that: It helps in achieving low cost in procurement transactions (55.9%); E-sourcing creates value to the organization through innovation (50.0%); It improves communication between the organization and new suppliers (47.1%); It compels the organization to be super-efficient and proactive in their quest to increase return on their investments (47.1%); E-sourcing reduces costs through improved process efficiencies (44.1%). Majority of procurement officers strongly agreed to statements that: Through the reduction in use of papers it offers environmental benefits (44.1%); Compared with traditional paper invoices, the e-invoice can help businesses achieve paperless, transparent transactions (35.3%); It offers easy retrieval and processing of data (35.3%); It offers greater security of data in the organization (32.4%). The study concluded that E-tendering, E-bidding, E-invoicing and E-sourcing are all statistically significant and influence performance of public institutions. The study findings reveal that majority of the respondents indicated that e-tendering process influences performance of procurement function in the organization to a great extent. Majority of the respondents were neutral as to whether e-auctioning process influences performance of procurement function in the organization. Majority of procurement officers agreed to statements that: E-bidding provide buyers and sellers an open environment. The study recommended that Kicukiro District 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. Kicukiro District should automate the practice of invoicing so as to promote transparency and record management since it will be easier to track records or identify payments to be made to suppliers.
Keywords: e-Bidding, e-Tendering, e-Sourcing, e-Invoicing, public institution performance, Kicukiro District
CITATION: Byiringiro, K. D., & Madichie, N. (2022). E-procurement practices and performance of public institutions in rwanda: A case of Kicukiro District. The Strategic Journal of Business & Change Management, 9 (4), 744 – 760.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i4.2447
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