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Impact of e-procurement adoption on the performance of SMEs in emerging economy

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  • Ayodolapo Olajumoke Oshoma
  • Ibrahim Oluwole Raji
  • Afees Yusuf

Abstract

E-procurement is an effective approach to improving firms' business operations and processes. While to a considerable extent, larger business organisations have embraced the technology, its adoption and impact among small and medium enterprises (SMEs) in developing economies like Nigeria remain unclear. This study investigates the adoption and impact of e-procurement among SMEs in Nigeria, specifically examining e-ordering, e-invoicing, e-sourcing, and e-payment. Using a quantitative research design, data was collected from 150 managers of SMEs, and structural equation modelling (SEM-PLS) was used for data analysis. Results indicate a positive relationship between e-procurement adoption and the business performance of SMEs in terms of procurement operations. The ease of use of e-procurement systems also positively affects SME performance. The adoption of specific e-procurement practices, such as e-ordering, e-invoicing, e-sourcing, and e-payment, is associated with improved SME performance. This study underscores the importance of e-procurement adoption for enhancing SME performance. Findings suggest that managers and stakeholders should consider adopting e-procurement practices to improve their business operations.

Suggested Citation

  • Ayodolapo Olajumoke Oshoma & Ibrahim Oluwole Raji & Afees Yusuf, 2024. "Impact of e-procurement adoption on the performance of SMEs in emerging economy," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 21(4), pages 440-466.
    • Handle: RePEc:ids:ijpman:v:21:y:2024:i:4:p:440-466
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