Adoption of E-Procurement and Its Effects on Firm Performance in Ghana's Construction Sector

Andrew Nimako-Boateng ()

International Journal of Developing Country Studies, 2025, vol. 7, issue 1, 19 - 35

Abstract: Purpose: This study investigates the impact of e-procurement adoption on firm performance in Ghana’s construction sector, with a focus on procurement transparency, cost reductions, and operational efficiency. Methodology: A mixed-method approach was adopted, with data collected from 60 procurement officers and project managers in Accra. Findings: The study reveals a significant positive correlation between e-procurement usage and firm profitability (mean = 3.59) and competitiveness (mean = 4.00). Quantitative results indicate that e-procurement led to a reduction in procurement costs by 10-15%, while qualitative insights highlight the need for capacity-building initiatives to overcome resistance to technological change. However, challenges such as unreliable energy supply (mean = 4.02) and limited technological integration hinder the full potential of e-procurement. Unique Contribution to Theory, Policy and Practice: These findings suggest that e-procurement can play a crucial role in improving efficiency, transparency, and competitiveness in Ghana’s construction sector, provided systemic challenges are addressed.

Keywords: E-Procurement; Construction Industry; Ghana; Firm Performance; Adoption (search for similar items in EconPapers)
Date: 2025
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