Determinants of Vendors’ Participation in Public Electronic Procurement System: A Case of Ilala District, Tanzania

Abstract

Tanzania has introduced the public e-procurement system as a solution to shortfalls of the traditional procurement system, but vendors are still reluctant to participate in it. The study objectives were to examine the influence of vendors‟ willingness drivers on participation in the public e-procurement system (PEPS); investigate perceived benefits of participation in the PEPS; examine technological factors influencing vendors‟ participation in PEPS; and determine organisational factors influencing vendors‟ participation in PEPS. The study adopted a cross-sectional research design and was conducted in Ilala District, Tanzania. Simple random sampling was used to select 300 respondents, and purposive sampling technique was used to select three key informants. Content analysis was used to analyse qualitative data while quantitative data were analysed by using descriptive analysis and inferential statistics (independent samples t-test, multiple linear regressions, Covariance Based Structural Equation Modelling (CB-SEM) and Partial Least Square Structural Equation Modelling (PLS-SEM)). The findings revealed that, perceived ease of use, corruption free and perceived usefulness were significant (p < 0.05) were vendors‟ drivers for participation in PEPS. Perceived benefits were significantly different (p < 0.05) between participant and non-participant vendors in PEPS. Further, technological factors (data management, data quality, data security among others) were significant at p < 0.05 for vendors‟ participation in PEPS. Lastly, organisational factors (top management support, skilled human resources) had significant influence at p < 0.05 for vendors‟ participation in PEPS. Also, indirect effects of governmental aspects‟ (bureaucratic control, system by-laws, and administrative practice) on vendors‟ participation in PEPS were noted. The study concludes that vendors are willing to participate in the public e-procurement system once significant drivers, perceived benefits, technological factors and organisational factors with or without governmental aspects are well observed. The study recommends PPRA to continue training vendors for PEPS benefits and make sure data are well secured and with high quality to attract vendors to participate. The study further recommends to vendors‟ top management to employ skilled personnel and provide clear internal guidelines to their procurement operations, hence support system participation. These findings require policy makers to involve vendors from the design to implementation stage of the public e-procurement system whereby PPRA should improve environment for easy vendors‟ use of the system.