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Ponte Academic Journal
Nov 2020, Volume 76, Issue 11

E-PROCUREMENT IMPLEMENTATION IN SOUTH AFRICAN SMALL AND MEDIUM ENTERPRISES

Author(s): Jeremiah Madzimure

J. Ponte - Nov 2020 - Volume 76 - Issue 11
doi: 10.21506/j.ponte.2020.11.8



Abstract:
Small and Medium Enterprises (SMEs) continue to take centre stage as one of the primary contributors to the South African economy, attention has been directed to how these enterprises can improve their business practices. The adoption and implementation of e-procurement as a major business practice could enable SMEs in this country to grow further and enhance their contribution to this developing economy. The aim of the study was to explore the levels of implementation of e-procurement in South African SMEs. A quantitative research methodology was employed in this study. The study used a conveniently drawn sample of owners and managers of SMEs based in Gauteng Province. The measurement scale used consisted of 22 items, which covered all the five e-procurement components, which are e-sourcing, e-design, e-negotiation, e-evaluation, and e-informing. Response options were presented in a Likert-type scale anchored by 1=strongly disagree and 5=strongly agree. The collected data were analysed through the analyses of mean scores. The study found overall mean scores of 4.62 for e-design, 4.68 for e-sourcing, 4.70 for e-negotiation, 4.78 for e-evaluation, and 3.89 for e-informing, all of which indicated an inclination to either the agree or strongly agree points on the Likert-type scale. By implication, these results indicate the satisfactory implementation of e-procurement amongst the SMEs in South Africa. Overall, the study showed satisfactory implementation of e-procurement in all five areas considered in this research amongst SMEs. Owners and managers of SMEs should begin to work towards developing a deeper understanding of e-procurement tools and systems and they should invest in e-design systems for their buying and selling as this will create further collaborations with supply chain partners. Keywords: e-procurement; benefits, implementation, SMEs, South Africa.
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