College of Finance, Management and Development

Department of Public Procurement and Asset Management

Factors affecting the Implementation of Electronic Government Procurement (EGP) in the Ethiopian
Public Sector.: In The Case of eight Pilot Ethiopian Federal Public Institutions,

By:

Ermias Asnake

(ID Number: ECSU2201448)

Advisor: (PhD)

May, 2022

Addis Ababa, Ethiopia

ii
Table of Contents
Declaration i
Approval ii
Acknowledgements iii
List of Figure viii
Abbreviations ix
ABSTRACT x
Chapter One 1
Introduction 1
1.1. Back ground of the study 1
1.2. Statement of the Problem 3
1.3. Research Questions 4
1.4. Objectives of the study 4
1.5. Significance of the Study 5
1.6. Scope of the Study 5
1.7. Limitation of the Study 6
1.8. Operational Definition 6
1.9. Structure of the Paper
7
Chapter Two 8
Related Literature Review 8
2.1. Introduction 8
2.2. Theoretical Framework 8
2.3. E-Procurement Practice in theWorld 9
2.4. Practice and History of E-Procurement in Developing Countries---------------------------------9
2.5. Practice and Challenges of E–Procurementin Ethiopia--------------------------------------------10
2.6. Empirical Literature 11
2.6.1. E-Procurement Implementation 11
2.6.2. E-Procurement Training 14
2.6.3. Top Management Commitment 15
2.6.4. Information Technology Infrastructure 15

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2.6.5. Legal Framework 16
2.6.6. Challenges of E-Procurement 16
2.7. Conceptual Framework 18
2.8. Hypothesis Development 18
Chapter Three 20
Research Methodology 20
3.1. Introduction 20
3.2. Research Approach 20
3.3. Research Design 20
3.4. Sources of Data 20
3.5. Sampling Designs 21
3.5.1. Target Population of the study 21
3.5.2. Sample Technique 21
3.5.3. Sample Size Determination 22
3.6. Methods of Data Collection 23
3.6.1. Questionnaire 23
3.6.2. Interview 23
3.7. Methods of Data Analysis 23
3.8. Validity and Reliability 24
3.8.1 Validity of Instruments 24
3.8.2. Reliability of Instruments 25
3.9. Ethical Consideration 26
Chapter Four 27
Data Presentation, Analysis, and Discussion 27
4.1. Introduction 27
4.2. Response Rate 27
4.3. Demographic Information of the Respondents-----------------------------------------------------27
4.3.1. Gender of the Respondents 28
4.3.2. Age of Respondents 28
4.3.3. Education of respondents 28
4.3.4. Experience of Respondents 28

iv
4.4. e-GP Implementation in the Study Institutions-----------------------------------------------------29
4.5. Descriptive Analysis 32
4.5.1. Factors Influencing e-GP Implementation in the Study Organizations-----------------------32
A. E-GP Training 32
B. Top Management Commitments 34
C. Information Technologies Infrastructure 35
D. Legal Framework 36
E. Major Challenges That Affected the Implementation of E-GP-------------------------------------38
4.6. Normality Test 40
4.7. Inferential Analysis 42
4.7.1. Correlation Analysis 42
4.7.2. Multicollinearity Assumptions 43
4.7.3. Assumption test using Pearson’s Correlation Coefficient---------------------------------------43
4.7.4. Assumption test using Collinearity Statistics-----------------------------------------------------44
4.8. Regression Analysis 45
4.9. HypothesisTesting 49
Chapter Five 51
Summary of Major Findings, Conclusion and Recommendations------------------------------------51
5.1. Introduction 51
5.2. Summary of Major Findings 51
5.2.1. e-GP Training 51
5.2.2. Top Management Commitment 51
5.2.3. Information Technology 52
5.2.4. Legal Framework 52
5.3 Conclusion 53
5.4 Recommendations 54
5.5 Recommendations for Further Study 56
Reference 57
Appendix 1 1
Appendix 2 2

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List of Table
Table 2. 1: E-GP Systems Adoption Worldwide.............................................................................9
Table 3.1 Number of population and sample size from each organization....................................22
Table 3.2 Cronbach Alpha result for the reliability test.................................................................26
Table 4.1. Respondents Background Information.........................................................................29
Table 4.2. E-GP Implementation Related Response Summary (n=131).......................................31
Table 4.3. E-GP Training Related Respondents Response Summary (n=131).............................33
Table 4.4. Top Management Commitments Respondents Response Summary (n=131)..............34
Table 4.5 Information technology infrastructure (n=131).............................................................35
Table 4.6. Legal framework (n=131).............................................................................................36
Table 4.7. Summary of Descriptive Statistics................................................................................37
Table 4.8. Major Challenges (n=131)............................................................................................38
Table 4.9 Test of Normality e-GP Implementation.......................................................................41
Table 4.10. Correlation Coefficient Analysis................................................................................42
Table 4.11. Collinearity statistics value.........................................................................................44
Table 4.12. Model Summary.........................................................................................................45
Table 4.13. Analysis of variance...................................................................................................46
Table 4.14 Result of Multiple Regression Analysis......................................................................46

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List of Figure
Figure 2.1 E-GP conceptual framework and Modules...................................................................13
Figure 2.2. E-GP Platform Validation Process..............................................................................14
Figure 2.3. Conceptual Framework...............................................................................................18
Figure 4.1. Normal distribution of the data...................................................................................41

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 Abbreviations

ANOVA Analysis of variance

BDU Bahir Dar University
E-GP Electronic Government Procurement
E-Procurement Electronic Procurement
EPSA Ethiopian Pharmaceuticals Supply Agency
ERA Ethiopian Road Authority
FPPPA Federal Public Procurement and Property Authority
HPR House of People Representative

IT Information Technology

LFW Legal Framework

MINT Ministry of Innovation and Technology
MoF Ministry of Finance
MoR Ministry of Revenue
PPS Public Procurement Services
SPSS Statistical Package for Social Sciences
TMC Top Management Commitment
TRG e-GP Training
VIF Variance Inflation Factors

viii
 ABSTRACT
This study is focus on Factors Influencing E-Procurement Implementation: In the
case of Seven Pilot Ethiopian Federal Public Institutions. The main objective of this
study is to assess factors influencing the implementation of e-procurement. The
specific objectives are to analysis how providing continuous e-GP training influence
the implementation of e-procurement, to assess how top management commitment
influence the implementation of e-procurement, to examine how Information
technology infrastructure influence the implementation of e-procurement, to examine
how legal framework influence the implementation of e-procurement and to identify
the major challenges that affected the implementation of e-procurement in pilot
public institutions. Both Primary and secondary sources of data were used to conduct
the study. The data were collected from employees of the seven pilot federal
institutions by using a questionnaire. Besides the questionnaire, interview from
Public Procurement Services; Procurement, Procurement Technical Quality
Assurance and IT directorates and from Public Procurement and Property Authority;
procurement, IT directorates and e-GP manager were utilized. From 157 target
populations 145 employees were selected for questionnaires from the seven federal
institutions and 6 people from two Pilot Institutions are selected for interview.
Descriptive and Inferential would use as method of data analysis. The analysis and
finding shows that e-GP training, top management commitment, information
technology infrastructure and legal framework have statistically significant and
positively correlation with e-procurement implementation. The conclusion of the
study is that e-GP training, top management commitment, information technology
infrastructure and legal framework have significant influence on e-procurement
implementation in pilot federal institutions. Based on the study, in order to ensure
successful e- procurement implementation in seven pilot federal institutions the
researcher recommends that government should provide e-GP training to the
employees to reduce resistance embarked from electronic procurement in the pilot
institutions. Top management should show full commitment throughout the
implementation process. The government should focus on upgrading information
technology infrastructure as a way to enhance e-procurement system. The study
finally suggests that the government should develop the legal framework to manage
and modernize the electronic procurement system.
Keyword: E-Procurement, Implementation, procurement, pilot institution

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 Chapter One
Introduction

1.1. Background of the study

Innovative technology has rapidly transformed the world. Its significance cannot be denied in any
field, as it is essential for progress and development. The use of technology in public procurement
management holds immense importance, as noted by (Kyle Burrichter et al., 2022) . Electronic
Government Procurement (EGP) involves the use of modern technology, particularly the Internet,
by government agencies and other public institutions to manage their procurement processes and
engage with suppliers when acquiring necessary goods, services, and works. This approach
facilitates efficient and transparent communication and transactions between the public sector and
suppliers, leading to a more streamlined and effective procurement cycle. As a result, electronic
government procurement (e-GP) systems are becoming increasingly popular as a means of
achieving standardization, consistency, and cost savings while reducing repetitive and unnecessary
tasks. (Lacascia et al., 2022) The Ethiopian government has changed from using a manual
procurement system to an electronic government procurement (e-GP) system. This e-GP system is
a web-based platform that allows for collaboration and is designed to handle the entire process of
tendering and managing contracts for government agencies. E-procurement is becoming
increasingly important in both the public and private sectors of Ethiopia’s procurement process.
However, e-procurement implementation faces hindrances from various factors, such as abuse of
authority, contract irregularities, collusion, manipulation, and human resource weaknesses. Factors
such as these inhibit the successful implementation of e-procurement. Supporting factors such as
political will, oversight from legislative bodies, and supervision from non-governmental
organizations play a critical role in ensuring the success of e-procurement
implementation (Shiferaw-Mitiku-Tebeka & Addis, 2019)

As per the report by the FDRE Public Procurement and Property Administration Agency (2014),
public procurement expenses consume a significant portion of the government’s annual budget,
accounting for 64 % of the budget and 14 % of Ethiopia’s GDP. Given its crucial role in the
economy, the implementation of e-procurement in Ethiopia aims to boost economic growth by
ensuring efficiency and effectiveness in the public procurement process. It also serves as a policy

10
tool to facilitate the development of local producers, small and micro-enterprises, suppliers,
contractors, and consultants, fosters trust between the government and donors, and facilitates the
flow of official funds

To promote transparency and modernization in public procurement, Ethiopian Federal Government

Procurement and Property Administration Proclamation No. 649/2009 and Article 31, respectively,
emphasize the use of electronic procurement and authorize the Ministry to approve electronic
means as a procurement method. To implement this, the Agency is responsible for conducting a
study and proposing a suitable system for electronic exchange of information based on the
country’s level of development. Moreover, the Agency ensures that public bodies, suppliers, and
supervising entities are equipped to implement the system. Finally, after careful consideration of
the proposed system and the capacity of public bodies and suppliers, the Minister may authorize
the use of electronic procurement in all or certain public procurement proceedings, establishing the
necessary framework for its operation
(FEDERAL_PUBLIC_PROCUREMENT_PROCLAMATION_6492001 (1), n.d.)

Since 2021, the Ethiopian government has been testing an electronic government procurement
(EGP) system with nine public agencies. By 2023, the program will expand to include 74 federal
agencies, including those responsible for major purchases in sectors such as agriculture,
technology, health, and education. The Ethiopian Public Procurement and Property Authority
(PPPA) oversees the rollout of the EGP, which has posted over 1,200 procurement opportunities in
the past year. The PPPA predicts that procurements totaling approximately $9 billion will occur in
2023 alone, with plans to expand the program’s scope across the federal, state, and local levels.
Ultimately, the EGP aims to cover up to 80% of all government procurements soon. Currently,
almost 8,000 domestic and international suppliers are registered on the EGP. The system
streamlines the entire public procurement process, from the preparation and publication of annual
procurement plans to bid evaluation and contract award (Ethiopia E-Procurement Platform
Provides Easy Access to Public Tenders, n.d.)

Considering the importance of e-procurement, the Ethiopian government has taken steps to
introduce it to certain pilot government organizations. However, empirical research on the
challenges of implementing e-procurement in Ethiopia is lacking. Conducting such a study would
assist the country in developing and refining its e-procurement policies, strategies, and procedures
for national implementation across all sectors of the economy. Therefore, this study aimed to

11
identify the primary perceived challenges and critical success factors observed during the pilot
phase of e-procurement implementation in Ethiopia.

1.2. Statement of the Problem

An electronic government procurement (e-GP) system is widely recognized as a tool that can
greatly improve governance. This is achieved by promoting transparency, efficiency,
accountability, and competition in government procurement. e-GP systems also enhance public
trust by reducing corruption risks and ensuring that taxpayer funds are used effectively and
responsibly. However, the successful implementation of the e-GP in Ethiopia depends on several
factors, such as technological infrastructure, legal and regulatory frameworks, capacity building,
and stakeholder engagement, as suggested by the research conducted by
(Shiferaw-Mitiku-Tebeka & Addis, 2019)
. Ethiopia’s procurement system faces issues due to gaps in the law and inefficient
bidding processes. These have cost the country a considerable amount of money. To address these
challenges, an electronic government procurement system (e-GP) is being implemented. The e-GP
system is expected to standardize and automate procurement processes and improve transparency,
accountability, and the management of public funds. The government is committed to improving
procurement regulations and addressing existing gaps.

A range of factors influence the implementation of electronic government procurement (e-GP).

Technological challenges, such as e-procurement acceptance and usage, digital signatures, and
security, can hinder implementation (Mohungoo, 2020). Organizational factors, including
stakeholder behavior, leadership, and resistance to change, also play a significant role (Mohungoo,
2020; Waithaka, 2021). Environmental and contextual factors, such as the regulatory framework
and the context of the country, further impact e-GP implementation (Mohungoo, 2020). In
Ethiopia, specific challenges include poor inventory management, inefficient tracking and tracing,
and counterfeit products in the healthcare supply chain (Jæger, 2021). The need for transparency in
e-GP processes to reduce corruption and promote sustainable development is also highlighted
(Hochstetter, 2023).

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The Ethiopian Public Procurement and Property Administration Agency (PPPAA) is responsible
for implementing an electronic government procurement (e-GP) system in Ethiopia, replacing the
previous manual procurement process. This web-based platform manages the entire tendering and
contract management process for government agencies. The PPPAA operates under the federal
Ministry of Finance and Economic Development and is located on its premises. The agency is
mandated to execute public procurement ethically and skillfully, following the guidelines set in the
Ethiopian Federal Government Procurement and Property Administration Proclamation.
(FEDERAL_PUBLIC_PROCUREMENT_PROCLAMATION_6492001 (1), n.d.)
The Ethiopian government is worried about ongoing problems related to manual procurement
management. These issues include a lack of skilled workforce, transparency, technological
awareness, and acceptance. In addition, there are challenges related to foreign currency shortage,
poor procurement planning, and inaccurate procurement data. These issues can lead to inventory
shortages, surplus inventory, and other procurement-related challenges. In addition, there have
been difficulties in accessing crucial data in the digital procurement system, affecting the efficiency
of procurement processes.

Electronic government procurement (e-GP) in Ethiopia is facing various challenges that can reduce
its effectiveness in promoting transparency, efficiency, and accountability in government
procurement. To successfully implement electronic government procurement in Ethiopia, a strong
technological infrastructure, network applications, competent human resources, top management
support, and supply readiness are required. Addressing these challenges is critical to ensure that the
e-GP system achieves its objective of improving the public procurement process.

The Public Procurement and Property Administration Agency (PPPAA) in Ethiopia is committed
to improving procurement systems through public sector reform programs. These efforts are
focused on increasing the transparency, accountability, and efficiency of public resources to
enhance the quantity and quality of public services. This aligns with the country’s development
goals.
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 Ethiopia is implementing an electronic government procurement (e-GP) project. Peragon has
developed the e-GP software installed in nine pilot institutions, including the Ministry of Finance,
Ministry of Innovation and Technology, Ministry of Revenue, Ethiopian Roads Authority,
Ethiopian Pharmaceutical Agency, Public Procurement and Disposal Service, Addis Ababa
University, Addis Ababa University of Science and Technology, and Public Procurement and
Property Administration Agency.The e-GP system aims to improve public fund management and
service delivery. It will automate procurement processes and cover up to 80% of government
procurements within the next few years.

The implementation of the electronic government procurement (e-GP) system in Ethiopia has been
delayed for three years, and little research has been conducted to identify the factors behind this
delay. This study will assess the factors affecting e-procurement implementation in nine pilot
Ethiopian federal public institutions. Further investigation is necessary to assure the quality of
service, save time, and provide integrated information. This study aims to bridge the gap and add to
the existing literature on the factors influencing the implementation of e-procurement in seven pilot
Ethiopian federal institutions.

1.3. Research Questions

This study intended to answer the following specific research questions:

i. How does technological factors affect the implementation of electronic government

procurement (e-GP) in nine pilot federal institutions?
ii. How does organizational factors affect the implementation of electronic government
procurement (e-GP) in nine pilot federal institutions?
iii. How does environmental/contextual factors affect the implementation of electronic
government procurement (e-GP) in nine pilot federal institutions?
iv. What are the major challenges that affect the implementation of e-GP in Ethiopia?

1.4. Objectives of the study

1.4.1. General Objectives

The General objective of this study is to assess factors affect the implementation of electronic
government procurement (e-GP) in nine pilot federal institutions.

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 1.4.2. Specific objectives
i. To analysis how technological factors affect the implementation of electronic government
procurement(e-GP)

ii. To assess how organizational factors affect the implementation of electronic government
procurement(e-GP)

iii. To examine how environmental/contextual factors affect the implementation of electronic

government procurement(e-GP)

iv.To identify the major challenges that affected the implementation of e-GP in Ethiopia

1.5. Significance of the Study

This study aims to understand the factors affecting the implementation of electronic government
procurement (e-GP) and to examine efforts made to address these factors to enable the
implementation of e-GP and improve decision-making on its implementation in pilot federal
institutions. There has been very little research done on the factors that impact the
implementation of e-procurement in Ethiopia. This study aims to fill this gap and provide a
foundation for future research in this area. The findings of this study will be used as a reference
for future research on this topic. This study is important for the successful implementation of e-
procurement in federal institutions through strategic planning. It will also help politicians
promote the IT industry and digitalization in the country. Ultimately, the study will contribute to
the researcher being awarded a Master's Degree in Public Procurement and Asset Management
(PPAM) from the Ethiopian Civil Service University.

1.6. Scope of the Study

The purpose of a study is to assess the various factors that affect the implementation of e-
procurement. The research will be conducted by federal institutions in Addis Ababa, including
the Ministry of Finance, Ministry of Innovation and Technology, Ministry of Revenue,
Ethiopian Roads Authority, Ethiopian Pharmaceutical Agency, Public Procurement and Disposal

15
 Service, Addis Ababa University, Addis Ababa University of Science and Technology, and
Public Procurement and Property Administration Agency. The study's focus will be limited to
these pilot federal institutions, and it will examine factors such as e-GP training, top
management commitment, information technology infrastructure, legal framework, and major
challenges affecting e-procurement implementation, without exploring other influencing factors.

1.7. Limitation of the Study

The study aimed to assess the factors that affect the implementation of e-procurement in nine
pilot institutions across five areas: e-GP training, top management commitment, information
technology infrastructures, legal framework, and major challenges affecting e-procurement
implementation. However, this focus might restrict the study from exploring other factors
influencing e-procurement implementation in pilot institutions. Throughout the research, it is
expected that certain challenges will be faced, which could potentially impact the research
process. These challenges may include limited access to different perspectives, time constraints,
lack of research experience, budget limitations, and restricted access to existing knowledge on
the issue.

1.8. Operational Definition

E-procurement: Refer to the use of integrated (common web-based) communication system for
conducting of or all of the procurement process (Shalle et al., 2013).
Implementation: Refer to the act or process of beginning to use or customize something new or
different (Kibet, 2016).

16
 Providing Continuous Training: This refers the capacity building and knowledge transfers
strategies for the user to implement e-procurement system (Kisa & Associates, 2020).
Top Management Commitment: Is refer to the top management team is accountable for setting
the vision and objective, create collective communication to revise procedures and
organizational structures and formulating policies and strategies desired to implement e-
procurement initiation (Kibet, 2016).
Information Technology (IT): Refer to all technological resources by way of important factor
in the effective application of information system. Technologies have altered, refined how
organization and corporations use in public function. Organizations adopt new technologies to
improve the efficiency and effectiveness of various work processes (Kibet, 2016).
Legal Framework: It refers the legal frameworks that support the implementation of e-
procurement and serve as binding rule to use the system in public institution Teklu (2020).

1.9. Structure of the Paper

The study will be organized under five chapters Chapter One provides an overview of the study,
including the background, problem statement, research questions, study objectives, research
hypothesis, significance of the study, study delimitations/scope, and paper organization. Chapter
Two reviews related literature, empirical review, and conceptual framework in e-procurement
implementation factors. Chapter Three explains the research methodology used in the study.
Chapter Four discusses the methods of data analysis and interpretation. The final chapter will
present the main study findings, conclusion, and recommendations.

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 ChapterTwo
Related Literature Review

2.1. Introduction
The literature review include the analysis of the most relevant studies regarding the previous
writing, experiences related to e-procurement system, researches done by previous researchers
and developing theories. The information will collected from different sources such as
professional journals, newspapers, internet, strategic plan and report. This enables the researcher
to acquire current knowledge about the concept of factor influencing the implementation of e-
procurement.

2.2. Theoretical Framework

The chapter presents the literature review on the topic related to the set variables of the study. It
covers theories that underpin the study that is Innovation Diffusion Theory (IDT), Technology
Adoption Model (TAM), Theory of Reasoned Action (TRA) and Theory of Planned Behavior
(TPB) and the Transaction Cost Theory. It also illustrates the advantages of adoption of e-
procurement, conceptual framework and the gap of the study.
1. 2.2.1
The Diffusion of Innovation Theory (IDT) is a crucial framework for understanding the spread
of new ideas and technologies in society. (Abosede, 2020) emphasizes the importance of the
theory in accelerating the adoption of Information and Communication Technology (ICT) in the
21st century. (Chikouche et al., 2018) provides a comprehensive survey of existing models of
innovation diffusion, highlighting their strengths and limitations. (Guidolin & Manfredi, 2023)
offers a different perspective on innovation diffusion, focusing on critical diffusions and the
management of policy interventions. (Benhabib et al., 2017) explores the interaction between
endogenous innovation and technology diffusion, and their impact on the productivity
distribution and aggregate growth. These studies collectively underscore the significance of IDT
in driving societal change and progress.

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 Technology Adoption Model (TAM)

The acceptance of information technologies is a complex process influenced by various factors.

The Technology Adoption Model (TAM) and the Theory of Use of Technology and Acceptance
are two key frameworks that emphasize the importance of perceived ease of use and perceived
usefulness (Venkatesh et al., 2016) These models have been applied in various business and e-
commerce applications, but their empirical analysis is not entirely conclusive. The Unified
Theory of Acceptance and Use of Technology (UTAUT) builds on these models, identifying
four significant determinants of user acceptance: performance expectancy, effort expectancy,
social influence, and facilitating conditions (Venkatesh et al., 2016) In the context of industrial
augmented reality (AR) systems, user acceptance is crucial, and factors such as ease of use,
enjoyment, and employee engagement play a significant role (Quandt & Freitag, 2021) In the
construction industry, the acceptance of technology is influenced by perceived ease of use,
perceived usefulness, social norm, attitude, perceived behavioral control, and facilitating
conditions (Nnaji et al., 2023)

Theory of Reasoned Action (TRA) and Theory of Planned Behaviour (TPB)

The Theory of Reasoned Action (TRA) and Theory of Planned Behaviour (TPB) have been extensively
studied in the context of IT adoption. (Simarmata & Hia, 2020) found that personal innovativeness in IT
significantly predicts behavioural intention. However, (Hassan et al., 2016) highlighted the need to
consider cultural differences, with subjective norm varying across countries. (Keszey, 2020) further
extended the TPB by identifying differences in the drivers of behavioural intention to use autonomous
vehicles, based on personal innovativeness in IT. Finally, Ridhwan (Ridhwan & Purwanto, 2020)
proposed a conceptual framework for the acceptance and use of technology in the Industrial Internet of
Things, incorporating performance and effort expectations, and social influence. These studies
collectively underscore the importance of considering individual and cultural factors in the application of
TRA and TPB to IT adoption.

19
Transaction cost theory has been applied in various fields, including planning (YAN, 2022)
finance (YAN, 2022) business performance (Jonah, 2018), and housing development
(Zainuddin et al., 2021)
(Shahab, 2022) highlights the conceptual discussions and limited empirical studies
in planning literature, while (YAN, 2022) provides a comprehensive study of option pricing with
transaction costs, focusing on American option prices and their optimal exercise
boundaries (Jonah, 2018) analyzes the influence of transaction costs on the business performance
of Tesco supermarket, emphasizing the need for strategic adaptation to environmental
challenges. (Zainuddin et al., 2021) applies transaction cost economics to the issue of
unaffordable housing in Malaysia, identifying and quantifying transaction cost components in
housing development.

2.3. E-Procurement Practice in the World

According to (Uddin, 2019), Canada started implementation of Electronic Government
Procurement (e-GP) since in 1991. The rest of the countries successively, started Electronic
Government Procurement implementation as shown in table: 2.1.

Table 2. 1: E-GP Systems Adoption Worldwide

1991 1996 1997 1998 1999 2000 2001 2002 2003
Canada Mexico Republic Austral Chile Philippines Brazil Norway
of Korea ia Malaysia United South
state Africa
North
Carolina
Italy
Ireland
2004 2005 2006 2007 2008 2009 2010 2011 2012
Argentina Finland Nigeria India Indonesia Vietnam Afghanista Bangladesh
Romania Moroc n Uzbekistan
co Thailand Nepal
Georgia
Source: Rashid and Uddin, 2019

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 2.4. Practice and History of E-Procurement in Developing Countries

E-procurement, the use of electronic systems for procurement processes, has gained significant attention in
developing countries. This literature review aims to provide a comprehensive overview of the research
findings related to e-procurement in developing countries. The review will highlight the adoption model,
quality improvements, economic impacts, factors influencing usage, feasibility of electric vehicles, barriers
to electronic health record adoption, and challenges related to pesticide use. The synthesis of these findings
will help identify knowledge gaps and suggest potential future research directions.

Adoption Model for E-Procurement Systems

(Gamal Aboelmaged, 2010) presents an adoption model for e-procurement systems in developing
countries. The study emphasizes the significance of perceived usefulness in influencing the adoption
decision. The model integrates the Technology Acceptance Model and the Theory of Planned Behavior
to provide insights into the factors influencing e-procurement adoption

E-procurement systems implementation remains an important enabler of effective execution of

procurement functions in any public sector. In most developing countries, governments’ initiatives of e-
procurement in public sector are still in their infancy stages (Philip Lobong & John keji, 2019).

21
Countries in Africa are at different levels of e-procurement implementation stages. At the
regional level, Botswana, Rwanda, South Africa, Tunisia, and Zambia have already embraced
end-to-end e-Procurement system as a tool for public procurement reform and already getting
visible enhancements in public procurement sector and received benefits regarding socio-
economic development. Tanzania launched e-Procurement in February 2018, and Uganda,
Ghana, Zimbabwe, Ethiopia, and Malawi have completed few of the initial steps for starting e-
Procurement (Dr. Rajesh Kumar Shakya, 2018)

2.5. Practice and Challenges of E–Procurement in Ethiopia

According to the Ethiopian Ministry of Finance a strategy 2018, document and road map report
on introducing the electronic government procurement system, using manual procurement
system had problems in the public procurement sector in Ethiopia that includes; challenges in
procurement planning and implementing the plans, lack of transparency in the process, delay in
procurement evaluation and contract award process, lack of accountability, poor contract
management, inconsistency in using procurement standards, poor coordination between and
among procuring entities and poor data management and lack of access to procurement
information. In addition, assessment done by Shakya (2018) on e-GP Readiness revealed that the
Ministry of Innovation and Technology (MINT) and Bahir Dar University (BDU) have
developed systems and already using e-Procurement systems. BDU has been using the system
for the last seven years internally for its procurement purposes. MINT developed the e-
Procurement system under the e-Government Strategy Implementation Plans 2020 and also
using the system for its own procurement purposes. FPPPA as the mandated authority for the
procurement sector is going to establish a unitary end-to-end national e-Procurement system to
be used across all government procuring entities. During the e-GP Readiness Assessment, both
the systems from the MINT as well as BDU were assessed going through the demonstration of
the systems considering the feasibility of qualifying one of them to be upgraded as the national
e-Procurement System.

As (Kamotho, 2014), the implementation of e-procurement should be seen as an effort to

advance the procurement goals, which include quality, timeliness, cost minimize financial and
technical risks, maximizing competition and maintain integrity. However, in developing
countries there remain challenge of controlling the range of variable require to obtain the benefit

22
 of e-procurement implementation. it should be remembered that e-procurement initiation is
expensive, demand upon staff, and time consuming, it take several years for public sector to
fully secure the strategic and operational benefit of e-procurement.

In Ethiopia there were two experience to use electronic communication system like integrated
financial management information system (IFMI) is implemented by federal government of
Ethiopia (FGE) through Ministry of Finance to improve public finance management system and
property administration, enhance greater accountability, timely financial and property
information and transparency across federal ministries, agency, regions, city administration,
zone and woreda retrieved from (https://www.mofed.gov.et/programmes-projects/ifmis/) and
supplier registration portal implemented by Public Procurement and Property Authority (PPPA)
assistance to know potential supplier list, to identify debarred supplier, to handle dispute arise
on supplier by public agencies, retrieved from (http://www.ppa.gov.et).

Study conducted by Shiferaw (2019), on Challenges and Critical Success Factors for e-
procurement adoption in Ethiopia; the result revealed that man-power retention, inconsistent and
disruptive infrastructure, integration with legacy system, top management and employees’
commitment and attitude, supplier integration, security fear, weak and inconsistent support, poor
monitoring and evaluation practices were found as the major challenges. Whereas, training given
to employees on how to use e-procurement tools and best procurement practices, the existence of
change management programs for users on implementation of e-procurement through effective
consultations and the skill of procurement employees with IT perspective were found the major
critical success factors.

According to (Teklu, 2020) several factors influence the implementation of e-procurement like
legal frameworks, management support and employee commitment, information technology
infrastructure and supplier acceptance.

2.6. Empirical Literature

2.6.1. E-Procurement Implementation

Various studies have been carried out on factors that influence the implementation of e-
procurement in different perspective. Study conducted by (Waniani et al., 2016) on factors
affecting implementation of e-procurement, in Nzoia Sugar Company, in Kenya using
descriptive statistics the study found out that employee competency was a challenge in e-

23
procurement implementation. Philip Lobong and Jhon Keji (2019) conducted a study on factors
influencing implementation of e-procurement in public sector in south Sudan using descriptive
study, the study found out that cost affects the implementation of electronic procurement,
implementation of e-procurement is a costly undertaking that requires enormous amounts of
capital (Philip Lobong &John keji, 2019). Similar Nur (2018) conducted study on electronics
procurement and procurement performance of private hospitals in Nairobi Kenya, using
descriptive statistics cost implication are reasonably considered as a challenge on e-procurement
implementation (Nur, 2018).

Tekelu (2020) conducted study on factors affecting the adoption of e-procurement in public
organizations; the case of Addis Ababa city roads using descriptive statistics, the study revile
that E-procurement in the public sector is crucial because it supports and facilitate all functional
of government. In addition e-procurement is expected to help manage the expenditure of the
huge public fund through public procurement, applying same rule of law, maintaining the
integrity of the government buyers as well as the private sector, and at the same time raising
awareness of the general public about the expenses of the government (TEKLU, 2020).

Orina (2013) conducted study on e-procurement readiness factors in Kenya public sector using
descriptive statics the study revealed that one of the most significant trials in government is how
to best use information technology in an age of communications revolution. The use of IT in
procurement processes may lead to reduced costs and time for managing information, to
integration, comparability and rapid update of data coming from different sources (Orina, 2013).

24
E-GP Conceptual Framework and Modules

Source: Perago e-GP Training Document, 2019.

Figure 2.1 E-GP conceptual framework and Modules

E-GP Platform Validation Process

Core Business Modules Infrastructural Modules

Cross-cutting Modules
 Registration Management (embedded)
 Knowledgebase
 Taxonomy and Catalog  Security
Management  Form & Template
Management
 Performance Designer
 Supplier Registration Management  Workflow Manager
 Procurement Planning  Record Management  Business Rule Manager
 Procurement Initiation  Payment Management  Data Repositories
 Tendering and Awarding  MIS (Reports and  Business Intelligence
 Purchasing and Awarding Dashboards)  Communication Services
 Auctioning and Awarding  Personalization
 Contracting and  Collaboration
Contract Management  Dispatcher
 Searching & Indexing
 Case Manager
 Integration Adaptor 13
 API Gateway

 Integration Adaptor 13
 Registration Module

 Register Organizations
 Assign Mandates
 Platform Owner  Manage Organization
 Regulator  Maintain Profile
 Treasury  Manage Organizational Structure
 Lead Agency  Invite user (admin / end user)
 Procuring Entity  Manage Personnel
 Development Partner  Manage Placement
 Financial Institute  Manage roles (as per mandate &
 Attorney General Apps)
 Business Entity @ Organizational Administrator
 Invite Organization Administrators
 Design Profile Templates
 Manage Look-ups (Data repository)
 Mange Form Languages
@ Super Administrator
Source: Perago e-GP Training Document, 2019.

Figure 2.2. E-GP Platform Validation Process

2.6.2. E-Procurement Training
Nyaporo and Atambo (2017) conducted study on Factors influencing the implementation of
government electronic procurement system in the country of Nyamira, Kenya; using descriptive
statics the study revealed that user training aspects in the study area influence the effective
implementation of the government e-procurement system which improve the users competencies
and skills to embrace electronic procurement (Nyaporo & Atambo, 2017). Implementing of a
new technology needs skill and knowledge to operate in the organizations and most
organizations do not implement because organizations employees are not familiar with new
technology. Empirical evidence identifies that organization whose employees have the necessary
skills and technical knowledge are more likely to implement e-Government applications. Murathi
(2016) conducted a study on Factors Influencing Implementation of E-Procurement in IFMIS
Projects In Public Sector: A Case of Ministry of Water and Irrigation in Nairobi, Kenya, using
descriptive case study approach variables like top management commitment, information
technology infrastructure, staff training and supplier capacity influence implementation of e-
procurement (Murathi, 2016).

14
 2.6.3. Top Management Commitment
Kibet (2016) conducted a study on factors influencing implementation of e-procurement IFMIS
project in public sector: a case of ministry of water and irrigation in Nairobi Kenya using
descriptive statistics the result revealed that top management commitment influence e-
procurement implementation. Top managements are responsibility of setting the vision and
objectives, attaining aggregate duty for change in process and hierarchical structures, and
planning the arrangements and techniques important to set up an e-Procurement activity (Kibet,
2016). (Lyimo & Abdul, 2019) assessed factors that influence the implementation of e-
procurement in public entities, in Tanzania using descriptive research design. The study found
out that top management commitment infrastructure influence implementation of e-procurement.
Similar study conducted by Asare and Prempeh (2017) on an Empirical Assessment of Factors
that Influence the Implementation of E-Procurement in Technical Universities, in Ghana, using
descriptive statics the factor analysis result gave IT infrastructure, public procurement regulation,
management commitment and staff competence influence highly implementation of e-
procurement (Asare & Prempeh, 2017).
2.6.4. Information Technology Infrastructure
Lyimo & Abdul (2019) assessed factors that influence the implementation of e-procurement in
public entities, in Tanzania using descriptive research design. The study found out that
information systems infrastructure influence implementation of e-procurement. Studs done by
(Asare & Prempeh, 2017), on an Empirical Assessment of Factors that Influence the
Implementation of E-Procurement in Technical Universities, in Ghana, using descriptive statics
the factor analysis result gave IT infrastructure, public procurement regulation, management
commitment and staff competence influence highly implementation of e-procurement. Sanewu
(2016) conducted study on the factors influencing implementation of e-procurement on small and
medium sizes business in Voi town; the study acknowledged using descriptive statics approach
variables like skills to use the systems, supplier compatibility and the cost of systems
infrastructure highly influence the implementation of e-procurement (Sanewu, 2016). Tekelu
(2020) conducted study on factors affecting the adoption of e-procurement in public
organizations; the case of Addis Ababa city roads, using descriptive statistics absences of legal
framework, management support and employee commitment, lack of supportive information
technology infrastructure and supplier acceptance are found factors that affected adoption of e-

15
procurement in Addis Ababa City Road Authority (TEKLU, 2020). Kibet conducted study on
factors influencing the implementation of e-procurement in the Ministry of Water and Irrigation
in Kenya, using a descriptive research design. The study found that Information technology
infrastructure highly influence highly implementation of e-procurement (Kibet, 2016).
2.6.5. Legal Framework
Asare and Prempeh conducted study on an Empirical Assessment of Factors that Influence the
Implementation of E-Procurement in Technical Universities, in Ghana, using descriptive statics
the factor analysis result gave IT infrastructure, public procurement regulation, management
commitment and staff competence influence highly implementation of e-procurement (Asare &
Prempeh, 2017). Similarly Chepkemoi (2014) conducted study on Challenges of E-Procurement
Implementation among Multinational Tea Companies in Kenya, using descriptive statics the
factor analysis result gave that legal framework being the back bone of any business operation
was also found to have a major barrier to the implementation of e-procurement systems. Legal
protection of confidential information and the ability to authenticate and enforce electronic
contracts were clearly the most cited challenges for electronics procurement implementation.
Lack of support from the existing legal framework would result loss of protecting and
safeguarding business interest legally while using electronic platform was also seen to be a key
challenge. This is clearly sustained by the fact that currently the ICT policy in existence has not
fully created a supportive legal framework where related issues are addressed (Chepkemoi,
2014).
Tekelu (2020) conducted study using descriptive statistics absences of legal framework,
management support and employee commitment, lack of supportive information technology
infrastructure and supplier acceptance are found factors that affected adoption of e-procurement
in Addis Ababa City Road Authority (TEKLU, 2020),.
2.6.6. Challenges of E-Procurement
A study conducted by (Sanewu, 2016), on the factors influencing implementation of e-
procurement on small and medium sizes business in Voi town; acknowledged using descriptive
statics approach variables like skills to use the systems, supplier compatibility and the cost of
systems infrastructure highly influence the implementation of e-procurement. As (Asare &
Prempeh, 2017) assessed in his study the readiness of public procurement entities in Ghana for e-
procurement. The Study identified some challenges which hinder the smooth implementation of

16
e-procurement in Ghana. Some of the challenges identified were as follows; end-user uptake and
training, supplier adoption, lack of e-procurement implementation strategy, costly technical
solutions and lack of management support.

Study done by (Chepkemoi, 2014), on Challenges of E-Procurement Implementation among

Multinational Tea Companies in Kenya, using descriptive statics the factor analysis result
identified the major challenges that influence electronics procurement implementation. Lack of
support from the existing legal framework would result loss of protecting and safeguarding
business interest legally while using electronic platform was seen to be a key challenge. This is
clearly sustained by the fact that currently the ICT policy in existence has not fully created a
supportive legal framework where related issues are addressed. Supplier enablement may be a
component that requires internet connectivity being currently a challenge it may not last due to
the fiber optic cable spreading across the country. This will be a key asset to eliminating most of
the challenges associated with supplier enablement. Security matters on any IT platform are a
concern for all. Despite this, investment in the necessary IT security features in any electronic
system will provide substantial deterrent from any unauthorized access or manipulation. The tea
companies should therefore invest in security systems within their entire IT platform that will
give them the ability to minimize their exposure to such risks. (Shiferaw- Mitiku-Tebeka &
Addis, 2019), anticipated to identify the major perceived challenges and critical success factors
for e-procurement implementation and to ascertain strategies to mitigating the existing perceived
challenges in e-procurement implementation in Ethiopia, using descriptive analysis methods and
analysis simple statistical tools like mean, frequency and percentage. The analysis revealed with
89 response man-power retention, inconsistent and disruptive infrastructure, integration with the
legacy system, top management and employees’ commitment and attitude, supplier integration,
security fear, weak and inconsistent support, poor monitoring and evaluation practices were
found as the major challenges. While, training given to employees and best procurement
practices, change management programs for users on implementation of e- procurement through
effective consultations and the high skill of procurement employees with IT perspective were
found to be the major critical success factor.

17
2.7. Conceptual Framework
Different factors are responsible for E-procurement Implementation. Figure 2.1 shows the
categories conceptual framework givens a brief illustration about factors that determine E-
Procurement Implementation. Therefore, based on the empirical reviews made above, the
conceptual framework of the study considered four major factors influence implementation of e-
procurement which will be considered in several studies undertaken in different countries.

Independent Variable

Providing continuous Training

Dependent Variable

Top Management Commitment

E-Procurement Implementation

Information Technology

Legal Framework

Source: Derived from different works of literature review, 2022.

Figure 2.3. Conceptual Framework

2.8. Hypothesis Development

The researcher would use rational hypothesis to describe the relationship between the following
variables; providing continuous training, top management commitment, Information technology
infrastructure and legal framework with the implementation of e-procurement in seven pilot
federal institutions.

1. Ho1. Providing continuous training has no significant influence on the implementation of e-

procurement in seven pilot federal institutions.
2. Ha1.Providing continuous training influence the implementation of e-procurement in seven pilot
federal institutions.
3. Ho2. Top management commitment has no significant influence on the implementation of e-
procurement in seven pilot federal institutions.

18
4. Ha2.Top management commitments influence the implementation of e-procurement in seven
pilot federal institutions.
5. Ho3. Information technology infrastructures have no significant influence on the implementation
of e-procurement in seven pilot federal institutions.
6. Ha3.Information technology infrastructures influence the implementation of e-procurement in
seven pilot federal institutions. and
7. Ho4. A legal framework has no significant influence has on the implementation of e-
procurement in seven pilot federal institutions.
8. Ha4. Legal frameworks influence the implementation of e-procurement in seven pilot federal
institutions.

19
 ChapterThree
Research Methodology

3.1. Introduction
This section is describing the research design, methods of data collection, sampling methods,
operational framework, and methods of data analysis, validity and reliability of data as well as
ethical consideration.

3.2. Research Approach

There are two basic research approaches quantitative and qualitative approaches. In this study,
quantitative research method approach was considered being appropriate in answering the
research objectives compared to the qualitative approach. According to Kothari (2004),
quantitative research approach analyzes variables relationships in terms of numbers and use
statistical strategies to review finding. Therefore, in this study, quantitative approach was use
since it has much control over the research environment and helps to manipulate some variables
to observe their effect on the other variables.
3.3. Research Design
There are three research designs, namely explanatory, exploratory and descriptive. This study
was use explanatory types of research design to overcome the research objectives as illustrated
in chapter two under conceptual framework. According to Kothari (2004) explanatory research
study researcher test the hypotheses of causal relationship between variables. Such study
requires procedures that were not only reduce bias, increase reliability and also permit to draw
inference about causality.
Therefore, this method is the most appropriate relating to the research under investigation. So
the researcher was use explanatory research design method in order to explain the causal
relationship between independent variables and the dependent variable (e-procurement
implementation).
3.4. Sources of Data
The study was used both primary and secondary sources of data to conduct this study. Primary
sources of data were collected from employees of the seven pilot federal institutions by using a
questionnaire. Besides, questionnaire the interview from two pilot federal institutions PPS;
procurement, Procurement Technical Quality Assurance and IT directorates and from PPPA; IT
directorates and e-GP manager are used.
20
3.5. Sampling Designs

According to Kothari (2004) states that sample design was being considered as a definite plan
for obtaining a sample from a given population, determining the sample frame, selecting
sampling techniques and determining the sample size.

3.5.1. Target Population of the study

The target populations for this study were seven federal institutions out of nine pilot federal
institutions, namely Ministry of Finance, Ministry of Innovation and Technology, Ministry of
Revenue, Ethiopian Road Authority, Ethiopian Pharmaceuticals Supply Agency, Public
Procurement and Property Authority and Public Procurement Services. Procurement and
Information technology infrastructure (IT) directorates are selected since all selected institutions
have those directorates on their organizational structure. According to Capital newspaper (2021),
nine pilot federal institutions selected for e-procurement implementation. However; this study
does not include all of the pilot federal institutions. Two pilot institutions in this study Addis
Ababa University and Addis Ababa Science and Technology University were missed due to
limitation of resources such as time and money and also their different institutional environment
from the other pilot institution. Therefore; the study limited itself in to seven federal public
institutions.

3.5.2. Sample Technique

The sampling method is the procedure by which the sample of units is selected from the target
population. To collect valuable information for the study, purposive sampling has been
employed to select case institutions (pilot). Also departments within the institutions,
Procurement and IT Directorates experts would selected for the questionnaires to be filled
through purposive sampling method. For further interview from Public Procurement Services
Procurement, IT and Procurement Technical Quality Assurance directors and from Public
Procurement and Property Authority Procurement and IT directors and e-GP manager were
selected through purposive sampling method. Therefore, this study would use non-probability
sampling techniques.

21
3.5.3. Sample Size Determination
The target populations of 157 employees from the seven federal institutions are taken from each
institution human resource departments. Thus, to calculate the sample sizes there are numerous
formulas used to determine the sample size. For the purpose of this study, the formula set by
Kothari (2004), would have been used.

n = z2. P. q. N
e2 (N-1) + z2 .p .q
Where,
p = proportion of success = 75%
q = proportion of fail = 25%
z = confidence level = 1.96
e = standard error = 5%
N = Total population = 157
n = sample size,
Table 3.1 Number of population and sample size from each organization
No. Name of Organizations Departments selected in Target Sampl
the Organization Population e size
1 Ministry of Finance Procurement and IT 18 17
Directorate
2 Ministry of Innovation and Procurement and IT 21 20
Technology Directorate
3 Ministry of Revenue Procurement and IT 17 16
Directorate
4 Ethiopian Road Authority Procurement and IT 22 21
Directorate
5 Ethiopian Pharmaceuticals Procurement and IT 20 19
Supply Agency Directorate
6 Public Procurement and property Procurement and IT 28 26
Authority Directorate
7 Public Procurement Services Procurement and IT 30 27
Directorate
Total 157 145
Source: own constructed, 2022

Therefore, the sample size of this study will be 145 employees of the seven federal institutions.

22
3.6. Methods of Data Collection
The study employed the structured questionnaires and interviews as data collection
instruments/methods.

3.6.1. Questionnaire
The Five Likert scales is employ since it is considered to be an excellent means of measuring the
attitude of respondents towards an attribute. According to (Singh, 2006), the Likert scale is user-
friendly and reduces uncertainty, confusion, and misunderstanding.
To collect primary data from employees of the seven federal institutions, the questionnaires were
closed-ended to collect data from each of the sampled participants because such, questionnaires
are vital to providing quick, inexpensive, efficient, and accurate information for assessing the
general population. The structured questionnaire includes three main sections. The first section
were about the general instruction of the questionnaire, the second part is talk about the personal
background of the respondents and the last section is consist of the main issues of the study as
stated in the research objectives and equation which deal with factors influencing
implementation of e-procurement implementation in seven federal institutions.
3.6.2. Interview
For this study's purpose, Procurement, IT and Procurement Technical Quality Assurance
Directors and e-GP manager of two federal institutions were interview. According to Kothari,
(2004) interviewing is a very useful approach for data collection because it allows the researcher
to have control over the construction of the data and it has the flexibility to allow issues that
emerge during dialogue and discussion to be pursued. The collection of data via interview was
managed by the researcher and the response of the managers was record to get the appropriate
response word by word based on the permission of the respondent.
In this study, a personal interview is used which requires a person known as the interviewer
(researcher) by asking questions in face-to-face contact with the interviewee (respondents). The
reason for using the interview as a method of collecting data is that more depth information can
be obtained.

3.7. Methods of Data Analysis

After data collection, the study was employed both descriptive and multiple linear regression
analysis methods to achieve the objectives of the study research.

23
Descriptive analysis used to present, organize and summarize the masses of the numerical data
into a meaningful form. These methods used to address the research questions, various
descriptive indicators such as frequency distributions, averages, and percentages were report and
presents from the field survey data collected to draw appropriate inferences.

Multiple Linear regressions are a method of estimating or predicting a value on some dependent
variable given the values of one or more independent variables. The primary purpose of
regression is to test the hypothesis using the model (Ott et al., n.d.).

Y = α + β1TRG + β2TMC+ β3IT+ β4LFW+ ɛ

Where, Y = E-Procurement Implementation

TRG =e-GP Training,

TMC = Top Management Commitment

IT= Information Technology infrastructure,

LFW= Legal Framework and

ε = the error terms as well as α + β are the slope and coefficients of variables.

Before going to the interpretation of the analysis the researcher was test and makes sure that all
of the assumptions and conditions multiple linear regressions analysis. Thus, checking
assumptions were being vital.

3.8. Validity and Reliability

In research, there are two criteria used for judging the standard of research design and these are
validity and reliability. According to (Winterstein, 2008), several studies have used this
instrument and found both their validity and reliability values to be acceptable to the population
being studied and in a different context thus recommend testing the validity and reliability of the
instruments.

3.8.1 Validity of Instruments

According to Winterstein (2008) Validity is that the degree to which a study accurately reflects
or assesses the precise concept that the researcher is attempting to live. Ensuring validity

24
requires a thorough understanding of what is to be measured and making it as accurate and right
as possible. Validity measure the validity of the researcher though use of correct statistical
procedure and instruments (Neuman, 2007). To insure the statistical validity of the study, the
researcher has collected quantitative data using survey questioner and analysis the data using
correct statistical instruments like descriptive statistics, inferential statistics, correlation and
regression analysis to see the relationship of the variable and reach concrete conclusion.

In addition to insure the validity of the study, the researcher received comment from the advisor
and other expertise on the questionnaire and overall research methodology. Furthermore, pilot
taste has been made by distribute questionnaire for Public Procurement Service’s respondents.
The major objective of the pilot taste was to get feedback on the questionnaire way of
preparation, wording, coherence and any other valuable comment and to in incorporate any
important comments and finalize the questionnaire.

3.8.2. Reliability of Instruments

Reliability refers to the extent to which the data collection techniques or analysis procedures
were yield consistent findings (Saunders et al., 2007). (Winterstein, 2008), also define reliability
as the extent to which a variable or a set of variables is stable and consistent in what it is
intended to measure. The data reliability test is measured by using Cronbach‟s Alpha.
Cronbach's Alpha was also calculated as part of the reliability test to assess how valid the results
were and should produce similar generalized results if the sample size were increase (Field,
2007). The Alpha value is ranges from a maximum of 1.0 for a perfect score to minimum of
zero, good measure of the alpha should be 0.70 or higher (Neuman, 2007). According to
(Zikmund and Babin, 2010) scales exhibiting a coefficient alpha between 0.80 and 0.96 are
considered to have very good reliability, between 0.70 and 0.80 are considered to have good
reliability, and alpha value between 0.60 and 0.70 indicates fair reliability and when the
coefficient alpha is below 0.60, the scale has poor reliability. Accordingly, the Cronbach‟s
Alpha values of the survey indicate almost all very good reliability and the result are presented
in table 3.2.

25
Table 3.2 Cronbach Alpha result for the reliability test

S. No. Variables Cronbach‟s Alpha Number of

Value Items
1 e-GP Implementation .790 6
2 e-GP Training .904 8
3 Top Management Commitment .811 8
4 Information Technology .805 7
5 Legal Framework .921 6
6 Major Challenges of e-GP Implementation .823 15

Source: Survey Result (2022)

The Cronbach‟s Alpha range values are between0.790 to 0.921. Therefore, all variables are
acceptable for further analysis.

3.9. Ethical Consideration

This study was an abiding ethical concern for both the seven pilot federal institutions and
participants of the study, moral conduct, and confidentiality to the organizational data and for
the privacy of respondents. The questionnaires were designed out in such a way that respondents
were not required to write their names and reveal their personal information on the questionnaire
and the confidentiality of the data being collected is handled with due care and used only for
academic purposes.

26
1