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Statistical analysis of the impact of e-procurement practices and technological capability on innovation and organizational performance: Evidence from Ghana
Elizabeth Serwaa Boateng Koomson
Ebenezer Tawiah Arhin
Joanna Paliszkiewicz
Piotr Pietrzak
Abstract
Within the specific context of the dynamic capabilities theory, this paper examines the role of e-procurement practices and technological adequacy in innovation and organizational performance within the institutions of the public sector in Ghana. The current study used a cross-sectional design to collect empirical data in the form of organizations that use a system of e-procurement. The target population was the procurement officers and the staff whose work is directly related to procurement in the selected organizations that are in the public sector. The purposive sampling method was applied to select respondents who had relevant experience, and a sample of 122 people was obtained. A structured questionnaire was used to capture data based on the perception of respondents of e-procurement practices, technological capability, innovation, and organizational performance. Preliminary analysis was carried out with the help of descriptive statistics, and the structural equation modelling was conducted to analyze the measurement model and to determine the structural association between the variables of the study. The results have shown that technological capability is a significantly higher determinant of innovation compared to e-procurement practices, and its effects on organizational performance are rather indirect, i.e., via innovation, but not through a direct channel. E-procurement practices have a great positive influence on organizational performance, but in comparison, the effect on innovation is not so strong. These findings indicate that innovation plays a key mediating role in the performance outcomes in digitally enabled procurement settings. The research finds that enhancing technological capability is critical to promoting innovation that in itself improves performance within the government. Based on these insights, the study recommends that public sector institutions increase investment in technological infrastructure to strengthen their capability base, prioritize continuous capacity building to improve the digital competencies of procurement personnel, and integrate innovation-driven approaches into e-procurement strategies to maximize performance gains.
