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The Influence of E-Procurement on the Effectiveness of Micro-scale and Medium-sized Businesses in South Africa

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  • Gert Jabulani Masuku

  • Jeremy Hlongwane

Abstract

Aim: The goal of this survey was to look into how e-procurement affected the performance of small and medium-sized businesses in Cape Town, South Africa. Methods: The descriptive research approach was used. 3000 small and medium-sized businesses operating in Cape Town, South Africa, were the target population. 97 owners or managers of Small and Medium Sized Businesses made up the sample size. Owners and managers of Small and Medium Sized Businesses made up the observational unit. Using a stratified random selection approach, 97 respondents were chosen from the target demographic. Results: According to the study, e-tendering had no appreciable impact on the performance of small and medium enterprises in Cape Town, South Africa. However, the performance of small and medium enterprises in Cape Town is significantly impacted by e-sourcing. E-invoicing also has a big influence on Cape Town's small and medium enterprises' performance. Additionally, e-payment has a big impact on Cape Town, South Africa's Small and Medium Enterprises' performance. Conclusion: E-tendering has a marginally beneficial impact on Cape Town SMEs' performance. However, the majority of SMEs do not have an online system for managing supplier contracts that simplifies the tendering procedure. Recommendations: Small and medium-sized businesses should adopt and use e-tendering to streamline the procurement process and reduce associated expenses. Additionally, small and medium-sized businesses should switch to electronic invoicing to save money on the costs of printing, storing, and shipping paper invoices. The report also suggests that all small and medium-sized businesses implement e-payment to boost productivity by increasing payment efficiency and lowering mistakes associated with cash transactions. Additionally, small and medium-sized businesses should use e-sourcing since it expands their access to a wide range of suppliers and speeds up the contract award process.

Suggested Citation

  • Gert Jabulani Masuku & Jeremy Hlongwane, 2022. "The Influence of E-Procurement on the Effectiveness of Micro-scale and Medium-sized Businesses in South Africa," Journal of Procurement and Supply Chain Management, Global Peer Reviewed Journals, vol. 1(1), pages 46-60.
    • Handle: RePEc:cjk:ojpscm:v:1:y:2022:i:1:p:46-60:id:29
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    References listed on IDEAS

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    1. Ittner, Christopher D. & Larcker, David F. & Randall, Taylor, 2003. "Performance implications of strategic performance measurement in financial services firms," Accounting, Organizations and Society, Elsevier, vol. 28(7-8), pages 715-741.
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