Perspectives on the benefit of e-procurement to the Nigerian construction industry

Olatunji, Samuel Olusola, Adeniyi, Onaopepo and Jegede, Blessing Esther (2021) Perspectives on the benefit of e-procurement to the Nigerian construction industry. Journal of Contemporary Research in the Built Environment (JOCREBE), 5 (1&2). pp. 34-42. ISSN 2636-4468

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Abstract

Purpose: The e-procurement platform is an innovative tool that can reduce many of the challenges of the Nigerian construction industry. E-Procurement systems are believed to have the ability to tackle some of the bottlenecks of the traditional processes of procuring goods, services and managing the entire procurement process in the construction sector. This paper thus x-rayed the benefits of e-procurement in the Nigerian Construction Industry based on the perspectives of construction professionals in Ondo State. Design/methodology/approach: To achieve this aim, the quantitative research design was employed in which, professionals were chosen from construction organisations (contracting and consulting firms) and were asked to express their perception of the benefits of e-procurement on a 5-point Likert scale-based questionnaire. 84 copies of questionnaire were administered in the study area. Out of which a total of 53 copies were completed, returned and successfully deemed fit for analysis. Data obtained was analysed using the Mean Item Score(MIS) and Kruskal-Wallis test. Findings: It was observed that respondents from small-sized firms ranked all benefits high but the highest-ranked benefit is “cost and time saving”. Also, the medium-sized firms ranked all benefits high but the highest-ranked benefit is “less paperwork”. Similarly, respondents from the large-sized firms also ranked all benefits high but the highest-ranked among the benefits is “cost and time savings”. Overall, “cost and time savings” was ranked as the top most benefitof e-procurement in the Nigerian construction industry. Research limitations/Implications: The limitations include the use of Ondo State alone as the study area and reliance on solely questionnaires to obtain data. Methods such as interview as well as comparative studies should be considered in future studies. The contribution of this study to the body of knowledge is that it was able to substantiate the benefits of e-procurement and its importance in improving the construction process in the Nigerian construction industry. Practical implications: This study recommends that practitioners and government should examine the perceived benefits and notice the fact that they were all highly rated by all the groups of respondents. This should encourage the drive towards the entrenchment of e-procurement in construction processes, irrespective of the cost and initial technical limitation. Originality/value – The study revealed the perspectives of three categories of construction organisations on the benefits of e-procurement and the need to encourage the drive towards the entrenchment of e-procurement in construction processes, irrespective of the cost and initial technical limitation in the Nigerian construction industry.

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