The Influence of the National E-Procurement System on Employees’ Performance in Selected Public Institutions in Tanzania

Abstract

The study assessed the influence of the Tanzania National E-Procurement System (TANePS) on employees’ performance in the selected public institutions in Tanzania. Specifically, we investigated the extent to which TANePS is being adopted, and its influence on employee performance at the following institutions: Government Procurement Services Agency (GPSA), and the Public Procurement Regulatory Authority (PPRA). We conducted a self administered questionnaire survey to 200 employees at the selected institutions, with a rate of return of 66 per cent. The study found that most respondents (84%, n=168) frequently completed their daily tasks easily by using TANePS. In particular, most of the respondents frequently used TANePS for e-tendering, and e-payment, while user registration and e-contract management had low use. On factors enabling adoption of TANEPS, the software design had a positive impact on the IT readiness (b=0.696, p=0.042). Management policies negatively affected internal resistance (b= -0.517, p=0.002), and internal resistance negatively affected adoption of TANePS (b= -0.506, p=0.002). At the same time, two factors (i.e., management policies (b= 0.649, p=0.002) and IT-readiness (b= 474, p=0.002)) had a positive effect on adoption of TANePS. Consequently, adoption of TANePS had a positive effect on the effective procurement (b=0.674, p=0.007), and the reduction of imperfections (b=0.721, p=0.001). The study further found that the use of TANePS led to better performance (p>0.045 [F (2, 183=26.737, p=0.045]), increased accuracy of production capacity (p>0.045 [F (2, 183=3.190, p=0.045]), and shortened process cycle times (p>0.024 [F (2, 183=17.347, p=0.024]). The study recommends that government procurement authorities and public institutions in Tanzania and other countries of similar environment should ensure that an e-procurement system is designed based on user needs; there are supportive management policies, there is a regular system review and maintenance, adequate technical user support and training, user friendly software design, a secure system, and stable network. These suggestions will increase the number of bidders and enhance stiff and fair competition among them.