The Association between Institutional Absorptive Capacity, Electronic Procurement Assimilation and Procurement Process in Public Sector Organizations

Abstract

Public sector organizations face challenges with their procurement processes. Electronic mode of public procurement enables governments and organizations to achieve efficient and effective tendering information processing, leading to transparency and fairness in the bidding process. However, little is known on the drivers of electronic procurement assimilation in the public sector. The study examines the influence of absorptive capacity on the assimilation of electronic procurement and the subsequent effect on the procurement process in the public sector. In addition, the study explores the mediating role of electronic procurement assimilation on the relationship between institutional absorptive capacity and the procurement process. Structural equation modeling was used to analyze 306 useable data from public sector organizations in Ghana where public procurement laws demand efficient and effective procurement processes. We found support for all the four hypotheses. We offer theoretical and managerial implications.