Implications of Electronic Procurement on Firm Performance: A Study of Selected Capital Market Operators in Lagos State, Nigeria
DOI:
https://doi.org/10.70619/vol5iss3pp25-41Keywords:
Electronic procurement, firm performance, capital market operators, e-tendering, e-sourcing, e-bidding, e-purchasing, e-paymentAbstract
This research investigated the on-time service delivery and process flexibility in the procurement process of selected Capital Market Operators (CMOs) in Lagos State, Nigeria. The electronic procurement independent variables used included e-tendering, e-sourcing, e-bidding, e-purchasing, and e-payment. Data were sourced from 158 CMOs in Lagos State, Nigeria, through the administration of structured questionnaires (online survey) and analyzed using the least squares methods. The results revealed an explanatory negative and significant relationship between e-tendering and on-time service delivery (coefficient = -0.018, p < 0.05), suggesting that electronic tendering processes may slow down prompt supplier deliveries. Conversely, e-sourcing had a positive but insignificant impact on on-time service delivery (coefficient = 0.015, p > 0.05), implying a slight but weak improvement in delivery speed. Electronic purchasing showed a significant positive relationship with on-time service delivery (coefficient = 0.155, p < 0.05), highlighting its role in improving supplier responsiveness. Regarding process flexibility, e-bidding exhibited a positive but insignificant relationship (coefficient = 0.069, p > 0.05), indicating that while e-bidding may support adaptability in supply processes, the impact is not statistically strong. Furthermore, e-payment demonstrated a negative and insignificant relationship with process flexibility (coefficient = -0.051, p > 0.05), suggesting potential inefficiencies or delays linked to electronic payment processes. The study concluded that e-procurement has helped firms in the Nigerian capital market to ease their procurement functions by ensuring a stress-free bidding process, purchasing via online procurement software, and making payments electronically. However, the tendering process being carried out online met some difficulties as it negatively affected the firms’ performance. The study recommended that firms, especially the CMOs, should strive to organize online auctions so as to speed up the bidding process and ensure transparency in their e-procurement functions to enhance their delivery quality.
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